Updated 01.10.2021

FNB Home Loans – How to Apply? – Features, Benefits and More

FNB home loans offer a solution to your cash problem when you need to buy a new home or upgrade your residential property. However, you must have a stable source of income to be considered for this loan. Apart from this, you have to meet the minimum loan qualification requirements set by the bank.

The FNB home loans are available to a variety of clients including single applicants, joint applicants, and juristic property owners. It is also available to first-time home buyers who can fulfill the first time buyer FNB home loan requirements.

How to Apply for the FNB Home Loans

Own the home you love with FNB home loans in four easy steps. Whether it’s your first time owning a home or changing into a new home, FNB has got you covered. With technology advancement and widespread internet use in South Africa, the bank allows you to apply for a home loan online. You can also visit your nearest branch and apply from there.

Eligibility for FNB Home Loans

You are eligible to apply for FNB home loans if you are permanently or self-employed. The bank will give you the loan agreement if you deposit at least a 10-20% of the property value. Note that the larger your initial deposit, the less you pay for your property in the long term. Apart from this, the bank also provides home loans to people who have:

  • At least 18 years old
  • Proof of Income
  • Financial stability and willing guarantors
  • Are under 75 years
  • A solid payment plan

Application Process

Once you visit the bank or log into the bank’s home loans site, you will have to submit some documents depending on the category within which you fall. These documents include:

Permanent Employees

  • Latest 6 months’ salary slips to show proof of income
  • Copy of your South African ID and proof of residence
  • Latest stamped six months personal bank statements
  • Copy of an prenuptial contract or marriage certificate where applicable
  • Purchase agreement signed copy
  • A copy of personal liabilities and assets statement for amounts exceeding R2.5 million

Self -Employed

  • Latest 12 months stamped bank statement
  • Personal assets and liabilities statement
  • At least two years of annual financial statements
  • Latest one -year stamped business account bank statements

If you are self-employed and present the bank with financial statements older than six months, ensure that you also present current management accounts that are less than two months. The management accounts should have your signature and that of your accountant. Other documents the bank needs you to submit besides the financial statements include:

  • Photocopy of your national ID
  • Copy of your marriage certificate or prenuptial contract if applicable
  • Photocopy of a signed purchase agreement offer
  • Copy of trust deed or registration documents

FNB will then run some standard checks to make sure the loan product is right for you at the time of application. This is likely to include a credit assessment to review your credit record and your access to funds and that you haven’t had any financial troubles. 

Repayment Plan

FNB Home loans gives you a flexible repayment plan on your mortgage bond. Any amount of money you pay to the bank besides your monthly repayment reduces your outstanding home loan amount and increases your interest benefit.

Your monthly home loan repayments will remain unchanged for easier withdrawal of the prepaid funds when needed. However, it is important to note that your FNB home loan option will be paid off quicker if you do not withdraw the prepaid funds. In case you choose to reduce your monthly repayment amount, the prepaid funds will be used to lower your periodic repayments. Consequently, you will be barred from withdrawing the prepaid funds.

The bank provides you with the following repayment plans:

  • Stable repayment plan: gives you a choice to pay the minimum monthly repayment needed
  • Add-on-repayment plan: This applies where you have enough funds available due to interest rates earned. You can opt to pay with interest earned on top of your monthly repayment amount
  • Offered repayment amount: Sometimes, the bank can offer you an amount higher than the minimum repayment amount needed. For example, if your repayment is R5000, you can opt to pay 6000. In case your rate fluctuates, the bank allows you to continue with your regular monthly repayment amount.

Features of the FNB Home Loans

Like any other home loan, the only way to know if the FNB home loans are suitable for you is to read and understand its features.

Redraw Facility

FNB home loan redraw allows you to withdraw any extra money made on top of the minimum monthly loan repayment. For example, if you have been making additional payments of R200 every month, after one year, you can withdraw R 1200.

Additional Repayments

The bank allows you to make extra payments into your loan account besides their minimal monthly loan payment. For example, if your minimum monthly payment is R 3000, and you pay R 4000, your extra amount is R 1000.

Extra payments reduce the outstanding home loan balance you need to pay in the long run and increase your interest gains. You can make additional payments regularly by direct transfer or direct debit from the account.

Interest Only

FNB Home loans give you an interest-only period where you pay interest only on your monthly repayment. This is a great deal as you get the chance to keep your repayments to the minimum. But this does not permit you to pay off your loan unless you deposit additional repayments. Typically, the bank gives out interest-only periods for a loan term of 5-10 years.

You can also choose between a variable interest rate or fixed interest rate on your repayments. The variable interest rate is the market standard where the payable interest rate changes with the changes in the market. This option may go together with the prepaid, readvance, future use, flexi option, building loan, foreign choice, traditional home loan, and further loan.

The fixed interest rate, on the other hand, allows the bondholder to budget and save on loan when the interest rate go up. Typically, the bondholder sets a fixed interest rate at a given time in agreement with the lender. You can fix your interest rate for a minimum loan term of 12 months and a maximum of 60 months. However, this option is available to a select few. To qualify for this option, your home loan account should be up to date with no outstanding arrears, all involved signatories should sign the variation agreement after the acceptance, and finally the home loan has to be registered at the application time.

Professional Package Discounts

FNB Home Loans boasts professional package discounts that allow you to pay one annual fee for deals on specific products and services. Other benefits that come with the professional package include waived:

  • Application fee
  • Monthly fee loan
  • Valuation fee
  • Monthly fee for a cheque account
  • Annual fee for credit cards with rewards

The professional packages apply for large home loans. You can use the package to negotiate a special discount if you are borrowing a heavy loan. It also applies to South Africans who boast about multiple products with FNB bank.

Benefits of FNB Home Loans

  • The bank gives you desirable interest rates depending on your profile. You also get a 50% off registered bond attorney fees
  • Quick and straightforward application process
  • Boasts a unique, affordable bond calculator that gives you a detailed breakdown of the costs you need to pay
  • With online banking, you can track your applications and gauge where they have reached
  • The bank offers you a committed property finance consultant for guiding and supporting you in every step of the loan process

Use this process to register for the FNB home loans. While at it, use all the home loan options availed to you to get as much benefits as the bank can offer.

FNB Home Loan Calculator

When looking at financing a property you should make sure you properly understand the costs involved and how much you can afford to borrow. You can use the FNB Home loan bond calculator to determine the monthly repayments based on the loan amount and the chosen term, as well as any additional costs you need to be aware of.

With this loan calculator you can look at variable rate options and review how additional monthly payments or a one-off lump sum payment can impact the reduction in your principle loan, and save you interest.

FNB Contact Details

You can contact FNB directly for a competitive quote via the online application form or use the below contact number to speak to someone.

FNB Home Loans
087 730 11 44

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