What is a bond raising fee?
A bond raising fee is a fee charged by the bank to raise bond finance over a property. It is a once off fee charged by the bank to open the facility. Each financial institution has its own variables for the percentage that they charge, however many buyers don’t know or don’t take advantage of the fact that the fee can be negotiated. This is one of the reasons that it is important to ‘shop’ for a bond before choosing a lender. On the commercial and industrial level, even a half a percent can save you thousands of rands. We deal with a few banks that would welcome the opportunity to quote you on a bond facility.
Ooba, our bond consultants are the best people to give advice - Ask your agent to put you in contact with an Ooba Consultant who will give you clear insight into what is involved in both the bond application process and the potential fees involved.