Buying a house is a huge commitment. For at least the next 20 years, you have to pay off a substantial debt. If you try to sell your house without at least having paid off the interest on your bond, you’re unlikely to turn a profit.

The process of finding the home of your dreams and getting a bond to buy it requires a lot of time and effort. While house shopping is lots of fun, getting the finance you need can often be an arduous challenge.

Banks are cautious about granting borrowers bonds. These are large sums of money which financial institutions can ill-afford to write off in the event of default.

Having been granted a bond, might think that it’s all over. However, there are a few additional steps that need to take place. The first is the registration of the bond. This is a process which requires attorneys. The Deeds Office verifies and processes the signed documents before the go-ahead is given for the registration of the bond.

What happens next?

  • The transfer of the bond

The registration process takes 6-8 weeks. After the bond has been registered, the transfer takes place. This is when the bank pays out the loan to the buyer. The payment is processed in accordance with the guarantees offered in the bond application and approval process.

  • The phone call you’ve been waiting for

Upon the registration and transfer of the bond, a bank representative will phone you to let you know you are a homeowner. If you haven’t already moved in or started planning your move, now is the time to do it. As the rightful owner of the house, it’s up to you to decide what will happen next.

  • The payback begins

When the bank phones you, the employee will discuss your repayment with you. The amount of the monthly payment and how it will be made are discussed. Most bond repayments are facilitated through a debit order from your bank account.

  • You can undertake renovations.

It might be tempting to start renovations early on in the process. However, there is always a chance that something could go wrong in the bond registration process.

If that happens, you will have a hard time recouping the money you’ve spent fixing up the house. Immediately after the bond registration, you can make the changes you want to your new home. Should you decide to sell the house, you will benefit financially from the improvements you made.

The process of buying a house from the time you fall in love with it to the time you move into it can be confusing. There are a lot of legalities and technicalities that you might find difficult to understand.

The estate agent and bank are there to help you get through it all. Make regular phone calls to check on the progress of your bond registration. This will allow you to put your moving plans in place and know when your first payment will be due.

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