Buying your first home: a step-by-step guide

1. Work out what you can afford

Start with your gross monthly income. The rule of thumb is that the bond repayment shouldn't be more than 30% of it. The affordability calculator does the sum, and a consultant can check it against what the banks actually say.

2. Check what you need in cash

Even with a 100% bond you pay transfer duty (none up to R1,210,000), attorneys' fees and deeds office fees. On a R1.2m home with a full bond, that's mostly the attorneys' and deeds office fees. The costs calculator gives the number.

Several banks lend more than the price to first-time buyers so these costs can go on the loan: Absa up to 110% (on homes up to R3.6m), Nedbank up to 109%, and FNB up to 110%.

3. Get pre-qualified

Before you make offers, find out what the banks will lend you. A consultant can do this for you, so you shop in the right price range and sellers take your offer seriously.

4. Sign an offer to purchase

The offer usually says it depends on you getting a bond within a set time. Read that clause and make sure the time is realistic.

5. Apply to the banks

Send the signed offer and your documents. Banks usually come back within a week or so. If more than one approves you, compare the rate, the term and the conditions as well as the monthly figure.

6. Attorneys and registration

Once you accept an offer, the transfer and bond attorneys register the property and the bond at the deeds office. It typically takes two to three months. You start paying the bond from registration.

The First Home Finance subsidy

If your household earns between R3,501 and R22,000 a month, you may qualify for a once-off government subsidy towards your first home. How First Home Finance works.