Did You Know? - Who owns the house – you or the bank?

Homeownership remains a significant aspiration for many. For most, buying a property involves taking out a home loan to finance the property purchase. This often leads to the following question: Who owns the house - you or the bank?

The bank registers a bond over the property which acts as security for the home loan. The bond essentially gives the bank a claim against the property should you fail to honor your repayment obligations. If your property is bonded, the bank will also retain the original title deed after registration of the transfer of the property into your name. This is because the bank has a financial interest in the property.

Does it mean that the bank owns your home? No. The title deed is registered in your name and serves as your proof of ownership. You are a "homeowner" whether your property is bonded or not. It entitles you to sell, lease or renovate the property. You may, however, need to seek the bank's prior approval for major alterations, especially if such changes will affect the value of the property. Once your loan is paid off, the bond is cancelled, and you will hold the title deed free of any financial obligations and without the bank's involvement.