Ask FNB your Home Loan and Save 30% on your Payment
According to Stats SA, in South Africa, the percentage of people owning a house is a little above 35% of the population. This means that more than half the population of our country either lives with other family members or rents. If you are within the group of people who don’t have a house of their own and want to change that, you should keep reading this article to find out how to do it. We want to discuss with you FNB home loans. Here, we will tell you all about it. How to get them, how they work, what you need to apply for them, what their interest rates are, and all the information we think you need to know.
How to get a home loan from FNB?
The First National Bank is one of the most important banks in South Africa. It was founded in 1838, and they pride in being the oldest bank of South Africa. Their continued presence in the credit market is a good indicator of their reputation, making the ideal bank to trust your money with.
Requesting a home loan is a long-term obligation you engage in with a bank, so it’s really important that you know exactly how it all works. FNB offers different types of home loans that we will discuss in this article. If you are an individual who wants to request a home loan at FNB, you only have to fill in their online application.
One of the best things about this loan is that you don’t need to make a deposit, that is, they finance the total amount of the house you wish to buy. Also, they offer you the possibility of anchoring the interest rate to a maximum of 5 years.
How long does Bond Approval take at FNB?
People may get anxious about how long it will take the bank to approve their loan. It’s understandable, you want your house, and you want it as soon as possible. However, after you finish the application process and provided all the documentation to the bank, that information must be studied carefully. The financial institution has to be sure that you will be able to repay the loan.
Usually, FNB might take a whole week to perform all credit checks and review your documentation. Nevertheless, this time may be extended due to several factors, such as delays in the application or problems with the documents presented by clients. In these cases, FNB mayneed an extra week or two to finish their research and approve your loan.
How to Calculate FNB Home Loan Interest Rates and Repayments?
Another issue that makes people uneasy is interest rates. How high will they be? How much will I end up paying? How much will I pay in repayments each month? It’s ok to be concerned about this. Luckily, everything has a solution, and we have one for you.
The problem with interest rates is that not everybody will get the same percentage; even if you take out the same loan with the same bank. The bank will offer each individual a different interest rate based on their credit history, how much they earn each month, and other affordability criteria. To become familiar with the approximate numbers of your repayments and interest rates, go to our online loan calculator.
Do I Qualify for a Home Loan with FNB?
Yes, FNB home loan is a great option for you if you are tired of paying your rent. With FNB, you may qualify for buying a house with different loan lines, like the Smart Bond, which is financed in 100% with a bond. But first, you need to know if you qualify for it and what are the requirements and documents you need to provide. Let’s see what they are.
The most important qualifying criterion is citizenship; you must be a South African citizen. The second main criterion is work. You need to have a steady job, and it is not enough to be working for a few months. You have to be formally employed in the same job for at least 12 months. Also, you need to earn more than R3 500 before taxes, per month.
You will have to provide the bank with the following documentation:
- Your South African ID
- Your latest 3 pay receipts, and bank statements
- If married, a marriage certificate
- Purchase offer
- Your salary must be paid to a bank account you own
If you meet these requirements, then you’re ready to start your FNB home loan application. One step closer to the house of your dreams.
Does FNB Offer 30 years Mortgages?
South Africans tend to look for home loans payable in 30 years because of the lower repayment amounts they usually have. The more installments you have, the less amount of money you have to pay each month. But what happens with interest rates? Well, they are much higher than, for instance, 20 years' mortgages. Thus, you may be paying less each month, but overall you will be paying much more.
FNB does not offer 30 years home loans for that reason. They don’t believe it is good for their clients to become engaged in that kind of loan; and with this in mind, they offer loans payable in up to 20 months. Your monthly repayments might be higher, but when you finish paying your house, you will see that you ultimately saved a lot of money. Like we said above, FNB is a reputable bank, with over 180 years in the financial industry, that thinks about their clients’ financial security. They don’t want you to run unnecessary risks.
What are the Home Loan Options with FNB?
FNB has a great variety of options for your dream of owning a house to become true. We’ll see which they are. At FNB you can take a loan to either buy or build a house. Also, there are different options according to if you are an individual, a company, a joint corporation, or a trust. These different choices come with different qualifying criteria and requirements. Read on to find everything you need to know.
How does FNB Access Bond Work?
With an access bond you can finally own your house and at the same time save money. How does it work? If you want to pay more money into your bond, you do it, and if you want to withdraw that amount, later on, you can.
FNB has different ways in which you can manage your access bond. They even have an option called flexi loan which allows you to have electronic access to your funds at any time. How to withdraw the money: Through an ATM, your cellphone, or online banking. Talk about convenience!
Are there Pension backed Home Loans at FNB?
A pension-backed home loan is an agreement that certain pension funds make with banks to allow the funds you have been saving in your pension funds to be used as a guarantee of payment for the loan. That is, the bank will lend you the money for you to buy, build or make repairs to your house. The repayments will be deducted from your salary and if you are not able to pay for the loan because, for example, you’re no longer with that employee, or you lost your job, the money for the deductions will be deducted from your pension fund.
FNB offers pension-backed home loans, but you will have to check with your specific pension fund if they have an agreement with FNB. For you to request this loan, you need to complete an application and provide all the information about your pension fund, a letter from your employee, and authorization for FNB to check on your credit history.
How does Building Home Loans Work at FNB?
With FNB, you can also take a building loan. With this loan, you can either build your house the way you want it or make important improvements to your current house. FNB will ask you to make a deposit of 10% of the total price of the construction. This amount may be higher depending on your credit history and affordability situation.
The building of your house must start within three months after your home loan is approved and you have 12 months to finish it. The repayment period is of 20 years, that is, you might have up to 240 installments. Also, FNB requires the house to be properly insured by the builder for the whole building term; once the house is finished, you will have to insure the house with insurance approved by and that meets the criteria of FNB.
For you to be able to ask for this loan, you have to earn more than R25 000 a month, you must have a good credit record, and you can only use the loan for the purpose of building your house (you cannot buy an already constructed home).
How does the Application Form for FNB Further Home Loan Work?
FNB allows you to access your home loan funds with a further loan. Fort this loan, you need to meet the requirements, provide the documentation, and approve the credit history and affordability checks that will be run on you.
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You should take into consideration that if you ask for a further loan, fees will be applied and that there will also be changes in the price of your home loan and its interest rate. Also, in order to request this option, your home loan payments must be deducted from your salary or your bank account.
Do FNB Home Loans Have Positive Reviews?
The web is swamped by people making all sorts of comments about, goods, services, and products. There are various and different comments about FNB, as well. Some people say they have a negative experience and others a positive experience. But, who are these people? Hard to know. We believe that it might be more useful to find out if someone in your community has had a real experience with FNB home loans, and ask them how it all went. Nevertheless, this bank has a long path in the credit market of our country. We believe this makes it a trustworthy institution.
Also, if you have queries about home loans offered by FNB, we invite you to take advantage of our site. At the end of this article, you will be able to ask as many questions as you want, and we will get back to you as soon as we can. You can also use the comment section to tell us if you have applied for a home loan with FNB; the community will surely benefit from knowing your experience.
2 Main Characteristics of the FNB Home Loan Protection Plan
Being a home-owner is, for many of us, the biggest dream we can have. But what happens if due to an unfortunate event you cannot longer pay for it? What if you become ill and can no longer work or if you die before settling the loan? The burden will fall upon your family’s shoulders.
FNB created the Home Loan Protection Plan for this reason; to release you or your family from this trouble. It’s a great act of responsibility to release the ones you love from the obligation of a loan under your name. Here we will tell you two main characteristics of this plan:
- In the event you become permanently disabled or you die, the insurer will take care of your home loan repayments.
- The maximum amount this plan covers is of R1 000 000.
Can I Apply for an FNB Home Loan if Self-employed?
There are many people who do not work for anybody but themselves. If this is your case, you might own a business that allows you to be your own boss. This is great, but, can you ask for a home loan at FNB without payslips? Fortunately, the answer is yes; yes you can. You can request a home loan at FNB if your business is duly registered in South Africa. All you have to do is provide your financial statements.
Can I Take a Payment Holiday with FNB Home Loan?
Loans are a serious matter; you should pay your repayments in a timely manner to avoid any kind of trouble. But this is not always the case. Sometimes you’re faced with unexpected events and you cannot afford to pay your home loan repayments.
What can you do in this scenario? The worst you can do is acting as if nothing is going on. The first thing you need to do is talk to the bank. FNB offers a quick fix service for these situations. They are aware of the fact that contingencies occur, so they offer you some solutions.
With this quick fix, you can either take a holiday on your repayment for a period of three months, consolidate your debt, or a reduced payment. For you to request this plan, you need to provide the bank with documentation such as your bank statements, and filling in an application for a new arrangement.
Does FNB Offer Secured Home Loans?
At FNB you can find a traditional home loan. What does this mean? It means that your loan will be secured against by the house you want to buy or build. With this loan, you can also obtain other finance options. For you to apply to this loan, you need to be over 21 years old and younger than 55. Also, as with any other loan, you need to have a good credit history and will have to give the bank proof of your income (you can either provide your payslips or financial statements if you are self-employed).
Where to Find an FNB Islamic Home Loan Calculator?
FNB has a home loan option that complies with the Sharia Law. How does this work? The client and the bank enter into an agreement where they both own the property. Then, the client has to start buying the shares owned by the bank within a maximum period of twenty years. One of the great characteristics of this loan in comparison to the traditional home loans is that the installments the client has to pay each month will be fixed for one year. Additionally, after this period, if the client wants (and can), he or she can buy more shares of the property by making a lump-sum payment.
If you wish to calculate the repayments or interest rates you would get with this loan, go to our online loan calculator. With our calculator, you will also be able to compare different loans offered by various banks in South Africa. This will not reflect the exact amounts offered by FNB on your home loan since these figures will be assessed by the bank once they have all your financial information; however, it will help you to know more or less how much you will have to pay.
What are the Requirements to Switch Home Loans to FNB?
There are many banks in South Africa that offer home loans. If you have requested a home loan with another credit institution and you are not happy with it for whatever reason, consider the possibility of transferring your loan to FNB. Can I do this? Of course, you can. FNB welcomes you.
Ok, you now know that this can be done. Now, how do you do it? You need to apply for this switch and you can either do it online, in person or through the phone. Convenient, isn’t it? Also, in order for you to do this transfer, you need to know that FNB will not accept foreign switches from other banks.
Let’s find out what information you must provide the bank with:
- ID (South African)
- Documents showing your income (if you are self-employed you will have to provide FNB your financial statements for a period of five years)
- If you are not a current client of FNB, you will have to show them your bank statements (for 6 months)
- Certificate saying you are a resident of South Africa.
3 Benefits of an FNB Private Clients Home Loans
If you earn more than R62 500 each month, you might qualify for an FNB Private Clients Home loan. This loan is designed for people who want to build the house in which they want to live in or their dreamt holiday house. This line comes with many rewards and benefits; here we will tell you 3 amazing benefits you’ll enjoy if you request this loan:
- You can choose the time in which you wish to repay the loan: it can be a short-term loan, a medium-term loan or long-term loan
- You will get reductions in fees of attorneys
- If you want to transfer your home loan to the FNB Private Clients Home Loans, FNB will pay for the costs of the transfer.
What are the Requirements for an FNB Private Wealth Structured Loan?
A structured loan is a kind of business loan given on the basis of the performance of your company. FNB offers this loan with multiple benefits such as earning e-bucks rewards, having a fixed interest rate, among others. You can use it to either buy a property or seize business opportunities.
To access to this loan, FNB requires:
- Income ranging from R750 000 and R1 499 999 annually
- Providing South African ID or passport (if you are a foreigner, you must be a resident of South Africa with a permit to work/live in our country)
- Certificate proving your residency in South Africa
- The last payslips or bank statements
We’ve seen here that FNB has many credit instruments you can benefit from to make your dream come true: owning your house. We talked about the different kinds of loans, their requirements, their benefits. We also discussed how to calculate rates and repayments, how to apply to these home loans, and more. FNB has an impressive history in the banking market of our country. Over a hundred years serving South Africans and helping them achieve their goals. We sincerely hope you can be part of the figure of citizens of our country who own their house.
Questions and answers
Do I need insurance for the home loan?
Yes, you need.
Can I make accelerated repayments?
Yes! You can pay the loan whenever you want.
What happens if I don’t finish building in one year?
You can agree a new term with the bank.
Application is really fast.
Transfer costs are high sometimes.
With construction loans, you pay your home when it is in the building process.