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At FNB, we believe that home is where your roots are. It's the foundation of special moments, from the first picture you drew to a lifetime of memories in the making.

Home Loan

At FNB, we believe that home is where your roots are. It's the foundation of special moments, from the first picture you drew to a lifetime of memories in the making.

More about: Home Loan

What will it cost?

That's why we make it our business to provide you with a home loan solution for every significant moment in every stage of your life - we know it's not just about buying a home; it's about owning your dreams.

The Traditional home loan is a loan to assist the customer with finance when purchasing an existing residential property. The traditional home loan may be combined with a range of additional facilities and options to personalise your home loan.

Expense Description Amount
Purchase price deposit (if necessary) Description This is a payment made to secure the property. The amount will be stated in the Offer to Purchase contract Amount Varies according to property value
Attorney Bond costs Description A fee that is paid by you to the attorney to register a mortgage bond in favour of the Bank Amount varies as per the legal conveyancing fees schedule
AttorneyTransferring costs Description A fee that is paid to the attorney nominated by the seller to transfer ownership of the property Amount varies as per the legal conveyancing fees schedule
Transfer duty and VAT Description This is a government tax, which you will need to pay based on the purchase price or the open market value of the property, whichever is higher. In property sales, either transfer duty or VAT will be applicable depending on whether the seller's line of business is property trading. Transfer duty is not applicable in respect of Tribal land however the transaction may attract VAT, depending on the type of seller. Amount Acquisition of property by natural persons:
Depending on whether or not a purchaser is a citizen or non citizen, transfer duty is charged as follows;

Citizen
5% of the purchase price for citizens after an expemption of P200,000.

Non-Citizens
5% of the purchase price
Initiation fee Description A fee charged by FNB to process your home loan application Amount See annual pricing guide for details. FNB will debit this fee to your home loan on registration.

Do l qualify?

The Traditional Home Loan is available to individuals, joint applicants and property-owning juristic persons e.g. trusts, non-trading close corporations and private companies.

The term of the loan must expire before you reach the age of 75.

First Bond A First Bond application for finance through FNB is for a fully built property where no previous finance for the property is in place.

The qualifying criteria on a New Home Loan must be met.

First Time Home Buyer
A First Time Home Buyer has never owned a property before and is approaching FNB for finance.
You will need to meet the following criteria when applying for a home loan for the very first time:

  • The qualifying criteria on a New Home Loan must be met.
  • You must be purchasing a property for the first time.

Switching from another Financial Institution
A switch is if you wish to transfer your home loan from another financial institution to FNB.

  • The qualifying criteria on a New Home Loan must be met.
  • You must be cancelling your loan with another financial institution.
  • FNB Home Loans will not accept Foreign National switches from another financial institution.

Expense Description
Initiation Fee Customer to pay. FNB can debit this fee to your home loan on registration.
Cancellation - Attorney cost This is the fee of the attorney working for other financial institution used to cancel the previous bond Customer to pay
Cancellation - Costs charged by other financial institution These may include admin fee, or penalty interest charged by the other financial institution Customer to pay
Registration - Attorneys cost Customer to pay

Vacant Land

A Vacant Land application is submitted when a customer requires finance for a portion of land where no building exists.

Do l qualify?
You will need to meet the following criteria when applying for Vacant Land finance from FNB Home Loans:

  • The qualifying criteria on a Traditional Home Loan must be met.
  • The vacant land must have existing municipal service connections.

What documents do I need?

  • A copy of an Offer to Purchase (if applicable)
  • Proof of income
  • If self-employed provide the latest financial statements
  • Suitable proof of residence
  • Copy of identity document
  • Copy of marital instrument (if applicable)
  • Completed application form

Building Loan

Let us help you through the entire process of building your dream home. We've made it easier for you to build a new home or make improvements to your existing one.

What the Building Loan offers me

  • You can build your dream home to your own specifications
  • You can buy in selected new residential developments with a choice of design, price and finishes that will suit your needs (excluding Sectional Title units)
  • You have the ability to build, alter, redecorate and increase the value of your property if you have just bought a property and do not have funds at your disposal
  • FNB will control payout on progress payments as per your instruction
  • Interest is charged on the outstanding balance and not the total loan amount

Exclusions

Building loans will not be granted on

  • Real right portions in any development
  • Share blocks
  • Timeshares
  • Sectional Title developments
  • Non-Residential buildings
  • Fractional Ownership

FNB Home Loans will NOT finance:

  • 'Owner-builders'

  • You have 12 months to complete the building. Construction work must commence within the first 3 months following registration.
  • Your loan term is limited to 240 months.
  • You only pay interim interest on the Building Loan until the building is complete. Once it is complete normal capital and interest payments become payable. If the construction period takes longer than 12 months, interest and capital become payable once the 12 month period allocated to the construction expires (unless the customer has obtained approval from the bank to extend the building period).
  • You will be limited to the variable interest rate until the building has been completed. On completion of the building
  • You can apply for progress payments at any stage during the construction process provided that sufficient work has been completed and the bank is satisfied with the progress. A maximum of six progress payments will be allowed, based on the work completed.
  • The application will be assessed on receipt of the necessary documentation in line with the policy and lending criteria of the bank. Assuming the bank is in a position to assist, a minimum deposit of 10% of the total package price (land + contract amount) is required in all instances; this however could increase dependent on the credit profile score of the applicant(s). The deposit will be based on the lower of the total package price, or FNB's assessed market value on completion.

What it will cost

Expense Description Amount
Expense: Purchase price deposit (if necessary) Description: This is a payment made to secure the land. The amount will be stated in the Offer to Purchase contract Amount: Varies according to property value
Expense: Architect Description: Their fee to design, draw and submit the plans to the local council for approval Amount: Architects fees will vary according to the company chosen and design of plans
Expense: Builder or contractor Description: The builder will provide you with a contract price which will include building costs, materials, etc. Amount: This will also vary according to the design, structure and finishes used
Expense: Industry professionals Description: These professionals may include the use of a quantity surveyor, structural engineer etc. Amount: Again, depending on the professional chosen, their fees will vary
Expense: Transferring costs Description: A fee that is paid to the attorney nominated by the seller to transfer ownership of the property Amount varies as per the legal conveyancing fees schedule
Transfer duty and VAT Description This is a government tax, which you will need to pay based on the purchase price or the open market value of the property, whichever is higher. In property sales, either transfer duty or VAT will be applicable depending on whether the seller’s line of business is property trading . Transfer duty is not applicable in respect of Tribal land however the transaction may attract VAT, depending on the type of seller. Depending on whether or not a purchaser is a citizen or non citizen, transfer duty is charged as follows;

Citizen
5% of the purchase price for citizens after an exemption of P200,000.

Non-Citizens
5% of the purchase price
Expense: Initiation fee Description: A fee charged by FNB to process your building loan application Amount: See pricing guide for details
Expense: Additional progress payments Description: A fee charged to have a valuer to evaluate and authorise progress payment Amount: See pricing guide for details

The requirements of the builder:

  • The bank will require the builder to sign a waiver of lien.
  • The bank would require proof of a Contractor's All Risk Insurance Cover for the duration of the building process until completion.
  • The builder must comply with the bank's conditions, as and when required, and ensure that the project is completed within 12 months from date of registration.

Your responsibilities

  • Inform the builder and the bank of any problems, concerns or delays in the building process. The bank will not act as clerk of works on your behalf and in need, you may want to appoint a suitable qualified professional person to supervise or oversee the project. It is important to note that you have appointed the builder and all disputes are to be discussed directly with the builder and the NHBRC where deemed necessary.
  • Ensure that the contract you sign with the builder does not comprise of conditions which will be prejudicial to you. In need, consult with a legal advisor or a suitably qualified professional to assist you before signing the contract.
  • Request progress payments only if you are satisfied with the progress and the amount requested by the builder.
  • Service your interim interest by making regular monthly repayments for these amounts as this will avoid any shortfall that may occur.
  • Ensure that you and your builder understand all the bank's conditions of loan and that all the conditions are being complied with at the times required/stipulated by the bank.
  • Ensure that on completion of the building that your Home Owners Comprehensive Insurance Cover is in place. The Contractor's All Risk Insurance Cover only provides cover from the date when construction commences until date of completion/occupation.

Important points to consider:

  • FNB Home Loans will NOT finance 'owner-builders'.
  • Unconventional construction methods will not be considered, unless prior approval is received from the FNB Property Valuations Department.
  • Building operations must commence within 3months after registration of the mortgage and must be completed within a further 9 months thereafter. Building to be complete within 12 months of registration.
  • The building contractor must carry Contractor's All Risk Insurance Cover and proof thereof must be submitted to the bank.
  • A property valuer will inspect the building progress with each progress payment request, and will report to the bank accordingly, prior to any progress payment being made.
  • Interest rates are limited to variable until the building process is complete.
  • Customers may not be granted the Flexi, Re-Advance or Future Use options on their building loan until it has been fully completed and the loan converted into a traditional home loan.
  • It is mandatory that Building Loans interest payments are settled via debit order or salaried stop order, and the responsibility for any interest payments rests with the mortgagor.
  • The application will be assessed on receipt of the necessary documentation in line with the policy and lending criteria of the bank. Assuming the bank is in a position to assist, a minimum deposit of 10% of the total package price (land + contract amount) is required in all instances; this however could increase dependent on the credit profile score of the applicant(s). The deposit will be based on the lower of the total package price, or FNB's assessed market value on completion. If the applicant credit profile score determines a loan to value amount less than 90%, no amount is redeemable at the end of the construction period. If for any reason during the period of construction, the applicant(s) credit profile deteriorates, the bank reserves the right to retain the redeemable amount.

The information in this publication is derived from sources which are regarded as accurate and reliable, is of a general nature only, does not constitute advice and may not be applicable to all circumstances. Detailed advice should be obtained in individual cases. No responsibility for any error, omission or loss sustained by any person acting or refraining from acting as a result of this publication is accepted by FirstRand Group Limited and/or the authors of the material.

Optional Extras

Prepaid Option

Access additional funds paid into your home loan.
What the Prepaid Option offers me:

  • Additional funds paid into your home loan, over and above your monthly payments
  • Access to cash without having to apply for another loan

What this allows me to do:

  • Withdraw the additional funds if required
  • Save a substantial amount of interest over the term of the loan
  • Pay lump sums or additional funds into your home loan. Your monthly repayment will remain unchanged in order to allow you to easily withdraw the additional funds.
  • Apply for a minimum prepaid amount of P10 000 as the minimum withdrawal amount is P10 000
  • An initiation fee will be applicable and your home loan pricing and interest rate may be affected

Further Lending: Readvance

Withdraw funds from your existing home loan.
What the Re-Advance lending option offers me

  • Access to the funds you've paid on your home loan
  • Extended term loan in conjunction with the application

What this allows me to do

  • Access to funds without undergoing a bond registration process
  • Withdraw cash already paid into the home loan

Home Owners Cover

Residential properties are prone to damage from fires, flooding, burst geysers, plumbing and natural disasters. HOC is therefore absolutely essential, as it covers these damages and losses to property

In terms of our home loan agreement with you, HOC is a requirement. The property remains security of the bank, it is therefore a requirement that you take out adequate cover for the duration of the loan. A suitable HOC insurance is conditional and subject to the bank's approval, irrespective of the underwriting insurer, prior to registration of your bond; and has to be maintained for the duration of the loan agreement. Any insurer may be used as long as the bank's requirements are met within the terms of the policy.

Our requirements include:

  • The interest of FNB must be noted
  • Confirmation of mortgagee clause
  • Confirmation of premium and insured amount
  • Confirmation of SASRIA cover
  • Confirmation of Personal Liability Cover

Life Assurance

Life is full of uncertainties, and no one plans to die and leave their loved ones with a financial burden.

In the absence of knowing what the future may hold, you can prevent that your loved ones face additional financial troubles when dealing with your death, as this in itself will be distressing. You may be required to supply Life Cover prior to the registration.

You have the choice of either accepting FNB Life's competitive Life Assurance quote called Embedded Life Cover Plan which will cover the outstanding balance of the loan, or you could insure the value of the home loan with an acceptable underwriter, subject to the policy having sufficient cover to pay off the outstanding balance, or registered bond amount, at the time of cession. Please note that FNB can reject any proposed credit insurance if it is not suitable.

Our conditions stipulate that the policy must:

  • Be ceded to FNB with outright cession rights (if a policy is ceded, the right of the cessionary takes precedent and will be paid before any payments to nominated beneficiaries)
  • Contain the start date and total amount of cover
  • Ensure that, in the case of joint account holders, all bond applicants have Life Assurance to the value of the total registered bond amount

How do I apply?

Home Loan - application process

If you need the personal attention and speedy response that comes with a First National Bank home loan, please talk to:

Contact Details

Home Loans Division: +267 370 6000 or 3706504 or 3706503