Don’t have your Nedbank ID yet?
Nedbank ID single sign-on gives you full digital access to Nedbank’s banking and lifestyle products and services on the Money app or Online Banking.
Log in
Log in to Online Banking or another one of our secured services.
Bank how and when you choose to, with the low fees or extra benefits you want.
Shop online or instore and earn rewards for it, with up to 55 days interest-free credit.
Buy foreign banknotes, transfer funds or shop globally with a travel card.
Great interest rates, with great flexibility and access to your money when you need it.
Personalised interest rates for affordable loans from R2,000 to R300,000.
Loan up to 100% of the property value or up to 105% if you are a first-time home buyer.
Choose a plan for yourself, family or build your own cover to suit your needs.
Get cover for your car, building, house contents, valuables and more.
Cover your bond, credit card, overdraft, loan and car repayments.
Choose a plan for yourself, family or build your own cover to suit your needs.
Take the right steps to achieve your financial goals with expert financial planning.
Plan for everything you own and owe, so your estate is in order when you’re gone.
Accounts
-
Everyday banking Safety, convenience and rewards
-
Youth banking For under 16s, or under 25s
-
Accounts -
Digital wallet Your phone is your bank account
-
Private Wealth The globally integrated account
-
Goal saving Easy access to interest earned
Credit cards
Digital banking
Switch to Nedbank
Fraud awareness
Forex
Rewards
Accounts
-
On demand Money available at any time
-
In 24 hours Cash in your hand the next day
-
In 32 days Funds ready within a month
-
End of term Investments left until maturity
Investment services
Share trading
Personal loans
Home loans
Student loans
Overdrafts
Vehicle finance
Solar finance
Life cover
Funeral cover
Short term insurance
Credit Life
Travel insurance
Is your business covered?
Secure Investments
Financial planning
Estate, wills & trust services
Nedbank Private Wealth
Speak to a financial adviser
Blog
Talk to us
Find us
- Login & Register
- Online Banking
- Online Share Trading
- NetBank Business
- NedFleet
- Nedbank Greenbacks
- Nedgroup Investments
- Nedbank ID
- Bank
- Accounts
- Credit cards
- Digital banking
- Switch to Nedbank
- Fraud awareness
- Forex
- Rewards
- Explore Bank
- Accounts
- Everyday banking
- Youth banking
- Accounts
- Digital wallet
- Private Wealth
- Goal saving
- See all accounts
- Get help choosing
- Family Banking
- Refugees and asylum seekers
- FAQ
- How-to guides
- Everyday banking
- MiGoals Premium
- MiGoals Plus
- MiGoals
- Discontinued accounts
- Youth banking
- Nedbank4Me
- Digital wallet
- MobiMoney
- Private Wealth
- Private Wealth Bundle
- Goal saving
- MyPocket
- American Express
- Amex Gold
- Amex Platinum
- Digital banking
- Switch to Nedbank
- Fraud awareness
- Forex
- Send and receive
- Rewards
- Save & Invest
- Accounts
- Investment services
- Share trading
- Explore Save & Invest
- On demand
- Club
- Money Market
- Stokvel
- In 24 hours
- JustInvest
- PlatinumInvest
- Tax-free Savings
- MoneyTrader
- EasyAccess Fixed Deposit
- PrimeSelect
- In 32 days
- Electronic 32Day Notice
- 32Day Notice
- End of term
- Tax-free Fixed Deposit
- Electronic Fixed Deposit
- Electronic Optimum Plus
- Platinum Fixed Deposit
- Fixed Deposit
- OptimumPlus
- Investment services
- Share trading
- Borrow
- Personal loans
- Home loans
- Student loans
- Overdrafts
- Vehicle finance
- Solar finance
- Explore Borrow
- Personal loans
- Consolidation loan
- Secondhand car loan
- Home improvement loan
- Exclusive short-term loan offers
- Explore loans
- FAQ
- How to guides
- Consolidation loan
- Secondhand car loan
- Home improvement loan
- Exclusive short-term loan offers
- Home loans
- Building loan
- Switching home loan
- Repossessed properties
- Start your home buying journey
- Solar-energy Finance
- Earn R29,600 p/m or less? See offer
- HomeVision extra funds
- Home-buying Toolkit
- Managing your home loan
- Explore home loans
- FAQ
- How to guides
- Track application
- Building loan
- Switching home loan
- Repossessed properties
- Start your home buying journey
- Solar-energy Finance
- Earn R29,600 p/m or less? See offer
- HomeVision extra funds
- Home-buying Toolkit
- Managing your home loan
- Student loans
- Explore student loans
- Overdrafts
- Vehicle finance
- Solar finance
- Insure
- Life cover
- Funeral cover
- Short term insurance
- Credit Life
- Travel insurance
- Is your business covered?
- Secure Investments
- Explore Insure
- Life cover
- Get a call back
- Explore MyCover life
- Funeral cover
- Individual R10,000
- Individual R30,000
- Family Cover
- Build your own cover
- Get a call back
- Explore MyCover Funeral
- Individual R10,000
- Individual R30,000
- Family Cover
- Build your own cover
- Short term insurance
- Vehicle insurance
- Building insurance
- House contents insurance
- Valuables insurance
- Get a call back
- Explore MyCover short term insurance
- Vehicle insurance
- Building insurance
- House contents insurance
- Valuables insurance
- Credit Life
- Home loan credit life
- MFC Vehicle Finance Assurance
- Overdraft Assurance
- Balance Protection Plan
- Personal loan Assurance
- Get a call back
- Explore credit life
- Home loan credit life
- MFC Vehicle Finance Assurance
- Overdraft Assurance
- Balance Protection Plan
- Personal loan Assurance
- Travel insurance
- Is your business covered?
- Secure Investments
- Guaranteed Growth Plan
- Guaranteed Income Plan
- Get a call back
- Explore MyCover Funeral
- Guaranteed Growth Plan
- Guaranteed Income Plan
- Plan
- Financial planning
- Estate, wills & trust services
- Nedbank Private Wealth
- Speak to a financial adviser
- Explore Plan
- Financial planning
- Investment planning
- Insurance planning
- Give
- Retirement planning
- Investment planning
- Insurance planning
- Give
- Retirement planning
- Estate, wills & trust services
- Will drafting
- Ensure your estate is managed by an executor | Nedbank
- Trust services
- Financial accounting
- Tax services
- Leave the admin of your estate to us, and not to your loved ones | Nedbank
- Will drafting
- Ensure your estate is managed by an executor | Nedbank
- Trust services
- Financial accounting
- Tax services
- Leave the admin of your estate to us, and not to your loved ones | Nedbank
- Nedbank Private Wealth
- Speak to a financial adviser
- Learn
- Blog
- Explore Learn
- Blog
- Contact us
- Talk to us
- Find us
- Explore Contact us
- Talk to us
- Find us
Rates versus levies: don’t get confused
Rates versus levies: don’t get confused
Staff writer
Posted 03/12/2021 Updated 23/03/2023 2 mins
It all comes down to the kind of home you buy.
Buying a property might involve some delightful surprises – maybe you’ll discover charming wooden flooring under a tired old carpet in your new home. Get it reconditioned, and you save yourself the expense of a new carpet. But a less pleasant surprise is that your home loan payments aren’t the only regular expense that comes with home ownership. Rates or levies are among them – but do you know the difference? Whether you pay rates or a monthly levy is determined by the type of home you buy.
Rates
Rates apply to free-standing homes and sectional titled properties alike. They are payable directly to the municipality every month. They cover land taxes and services that the municipality is responsible for: sewerage, water, roads upkeep, electrical infrastructure, streetlight maintenance and refuse collection.
Rates are calculated according to the market value of the property, including any buildings on the site or improvements made. South Africa’s Constitution gives municipalities the power to value and rate property in their jurisdiction, and all owners of rateable property are liable for the payment of rates. Rates can apply to land even if there are no buildings on it. The formula for calculating rates is to multiply the market value of the property by the percentage that the municipal council has set.
Levies
On top of their rates, property owners in a sectional title establishment, like a townhouse complex, a cluster development or block of flats, are liable for a monthly levy, paid into the bank account of the body corporate. The body corporate is made up of all the unit owners in any sectional title development, but the day-to-day running and maintenance of the complex is handled by trustees. Body corporate members elect the trustees at an annual general meeting, and they should act in the interest of the body corporate as a whole.
Sometimes, a sectional title development can raise a special levy on top of the regular levy, to take care of important projects
The levy does not include your portion of the property rates, so you will need to pay this individually. Your levy covers the costs of security, cleaning, repairs and maintenance of all common areas, and building insurance coverage.
Levies are strictly meant for the upkeep of common property within a sectional title development. They do not extend to the maintenance inside each unit; expenses like repainting the inside of the home need to be paid by the owners. Sometimes, a sectional title development can raise a special levy on top of the regular levy, to take care of important projects – such as painting the complex and outside of the units, security upgrades, or adding features like a swimming pool or clubhouse.
What’s the difference?
The main difference between rates and levies is what they don’t cover, and so falls under your responsibility. If you buy a sectional title property, after paying your levy each month you only need to worry about repairs and maintenance to your own unit on the inside. Building insurance, repairs, upkeep and cleaning of the common areas, garden services and security are all the responsibility of the trustees, using the body corporate money paid through levies. In a free-standing home, you pay those costs directly.
If you buy a free-standing home in an estate, all expenses including insurance must be covered by you directly. It’s worth your while, in this case, to check what is and is not included in the levy with the estate’s homeowners’ association. This will usually involve a monthly levy, but it allows you to take action as a collective on issues like security, refuse collection, maintenance of roads, parks, electrical infrastructure and streetlights.
Did you know that on average, Nedbank pays out around R2 million a month in cash back on home loans? In 2022, our cash back pay-outs on home loans totalled R25.6 million. For an affordable home loan tailored to your circumstances and value-added extras like up to R20,000 cash back and a 50% discount on your attorney bond registration fees, choose the bank that’s best for your money.