FNB Home Loan

A FNB home loan is a life-changing experience. Whether you’re building your dream home, buying a new home, or refinancing, FNB has a solution for you. With more than a century of experience in financial services, FNB is a bank preferred by many households. As the bank consistently provides exceptional home loan solutions, FNB home loan solutions never disappoint.

About FNB Loan

Whether you are a home buyer, investor, or entrepreneur, FNB has a property finance solution for you. FNB property solutions also include Shari’ah property finance and foreign home loans.

Here are the property financing options available from FNB to individuals and businesses.

1. Building loan

Have you thought about building your dream home? First National Bank can help with your home loan. The FNB home loan will let you build the home of your dreams.

In accordance with the bank’s policy and lending criteria, each application is evaluated upon receipt of necessary documents. Hence, before you apply for a building loan, you need to ensure that your credit rating is good.

Highlights of the building loan

  1. 240 months is the maximum term for a building loan. There are no extensions available for building loans.
  2. FNB will require a 10% down payment if it agrees to assist.The total package includes both land and building contracts.
  3. Depending on your credit profile and score, the deposit amount may increase.
  4. FNB determines the 10% deposit based on the completed property value.
  5. You have 12 months to complete the building.
  6. Construction work must commence within the first 3 months following registration.
  7. During the building period, you must pay back the capital amount as well as interest.
  8. As long as the building is not completed, the variable interest rate will be in effect. Then you can apply for a fixed interest rate once the building is finished.
  9. Funds will be issued in stages of the building process. Payments will be limited to 6 stages of progress based on the work completed.
  10. It is the builder’s responsibility to provide all-risk insurance until the property is complete.
  11. From the applicant, FNB will need you to provide the home owner’s comprehensive insurance that complies with FNB’s criteria.

When building your home, you will need to cover certain expenses. Building a home comes with an extensive list of expenses, according to FNB. Some of these expenses are one-time and others are recurring.

Once-off costs

One-time costs refer to expenses you incur when building a home. You will have to incur the following once-off costs in order to qualify for a building loan:

  1. Purchase price deposit
  2. The fees for designing, drawing and submitting plans to the local council for approval.
  3. Fees charged for a contract price that includes building costs, material costs, etc.
  4. Registering a new home with the NHBRC requires a fee to be paid by the builder.
  5. Registration costs
  6. Transferring costs
  7. Postage and sundries
  8. Deeds office registry fee costs between R70 to R3000.
  9. Loan Initiation fee
  10. Transfer duty.

Monthly recurring costs

Recurring costs are those costs that you will need to pay on a monthly basis.

  1. Municipal rates and fees
  2. Monthly home loan repayments
  3. Property Insurance
  4. Life insurance
  5. Household content insurance

2. Shari’ah / Islamic property Finance

FNB offers solutions for Islamic property financing. Those who use Islamic banking as a banking option are eligible for this product.

Highlights of the Islamic property Finance

  1. According to Islamic banking standards, this product is subject to a base rate of 7%
  2. This product is based on a diminishing Musharaka agreement. Up to a period of 20 years, you can purchase the bank’s portion of this agreement.
  3. Profits are fixed for one year and reviewed annually.
  4. If the property is paid-up, a refinancing option is available.
  5. The ability to purchase additional units of the bank portion on the anniversary date.

How the foreign choice home loan works

Non-residents and foreigners can use this product to purchase property in South Africa. You can apply as an individual or with a joint applicant. The product allows non-residents of South Africa, Lesotho, Swaziland, or Namibia who do not live in the common monetary area to buy property in South Africa.

Financing is also available for foreign nationals living in South Africa on a temporary basis. The eligibility requirements are that they have a valid working permit for work in South Africa. When buying a property with a loan from FNB you will incur costs.

4. Buying an existing property

Businesses and individuals can obtain a home loan from FNB to purchase an existing property. This is the most common and most popular type of home loan.

This loan can be applied for as an individual or jointly. A home loan that is suitable for you will be given to you depending on how much income you have. Trusts are also eligible to apply for this mortgage.

Highlights of the loan

  1. On your first home loan repayment, you can get up to 50% back in eBucks.
  2. A free property valuation is provided by FNB.
  3. Offers flexibility. You can get additional funds.
  4. The loan period is 20 years or less.
  5. Offers a choice of fixed or variable interest rates.
  6. Can opt for different repayment methods.

What do you need to apply for a First National Bank home loan?

The following requirements must be met to apply for an FNB online loan:

  1. Firstly, you must be 18 to 64 years old;
  2. The applicant needs to be either employed full-time or self-employed.
  3. It is necessary for you to have a South African bank account into which your salary is deposited; and

You will also need the following documents to complete the FNB online application:

  1. An ID card or smart card that has a green bar code;
  2. Your latest payslip;
  3. Your latest proof of residence that is less than 3 months;
  4. If you do not have an FNB account, you also need bank statements for the past three months.
  5. Furthermore, a self-employed applicant is also required to provide six months of bank statements if he or she does not have an FNB bank account.

If you have all the aforementioned documents and meet the above requirements, then you will be one step closer to getting your loan application approved.

FNB home loan calculator

You need to know the costs involved, as well as the amount you can afford before you make the final decision to finance a property. You can use this calculator to determine the monthly repayments based on the Home Loan amount and the chosen term, as well as the costs you need to consider when financing a new home.

Additionally, you can view the impact of additional monthly payments or a lump-sum payment on the reduction of the loan term and save you money in interest. Click here to use the FNB home loan calculator

How long does it take for an FNB home loan to be approved?

From the date of approval, this process can take about three months.

How to Apply for an FNB loan.

The application process for FNB loans is pretty simple and swift. Here’s how the overall process works to get you from point A where you’re considering applying for an FNB online loan to point B where you have the funds in your bank account:

  1. You can apply by visiting FNB’s website and providing the necessary information and details.
  2. Once your credit is approved, FNB transfers the money into your bank account.
  3. You can use the money for anything you want.
  4. You start making monthly repayments as agreed until you finish paying off the principal amount, interest plus other charges

How do I contact FNB?

Do you have any complaints or inquiries, customers can call fnb standby these contacts;

Contact; 087 575 9404

Email;  info@fnb.co.za

Website; https://www.fnb.co.za/home-loans/

Postal address; 15 Pickering St, Newton Park, Port Elizabeth, 6055, Port Elizabeth, 6070, South Africa

Conclusion

FNB home loans come in a variety of forms. Different lenders offer home loans, and FNB offers loans through Islamic banking. With an FNB home loan, you will qualify for eBucks cashback. This is not something you get on a regular basis. Some of the repayments you make can be redeemed in eBucks up to 50% of the home’s value. Be sure to explore other home loans options before settling for one.

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