Important points to consider
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FNB Home Loans will not finance 'owner-builders'.
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Unconventional construction methods will not be considered, unless prior approval is received from the FNB Property Valuations Department.
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Building operations must commence within 3 months after registration of the mortgage and must be completed within a further 9 months thereafter. Building to be completed within 12 months of registration.
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The building contractor must carry Contractor's All Risk Insurance Cover and proof thereof must be submitted to the bank.
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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.
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Interest rates are limited to variable until the building process is complete.
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Customers may not be granted the Flexi, Readvance or Future Use options on their building loan until it has been fully completed and the loan converted into a traditional home loan.
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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.
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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.
