The Different FNB Home Loans
If you are a prospective customer hoping to get a home loan
from the FNB, you may find that they are one of the most approachable
banks at present because they are in the process of re-defining
their credit provisioning and hope to improve their services.
FNB have five home loan options to offer their customers while
two of them are especially aimed at those who are hoping to
buy their first home.
The 2 FNB
Home Loan schemes are: The Traditional Home Loan and Bond
Plus.
Traditional Home Loan
This is for the buyer who is planning to buy a property and
has enough cash to pay the deposit upfront together with registration
fees and transfer costs. The loan is guaranteed up to a period
of 30 years and financing is usually provided up to an extent
of 80% of the purchase price of the property.
They also offer you three choices of interest rates such
as the fixed, variable and BA-linked interest rates. You also
get access to the future use option which is the registration
of a mortgage higher than the loan secured by you, Access
to Further Bond which means that you are able to register
money in addition to the amount you have already mortgaged
and lastly access to Readvance, that allows you to use the
money that has already been paid by you against the home loan.
Another advantage with the Traditional Home Loan is that
you are allowed to make additional deposits each month by
which you save on interest and also gives you the opportunity
to apply for Flexi Bond, which gives you access to the deposits
you make into your loan account.
To be eligible for a Traditional Home Loan, the property
concerned must be more than R300, 000 and also meet FNB’s
credit requirement while being in possession of a South African
identification document. Take note that insurance cover is
also considered compulsory to obtain a Traditional Home Loan.
Bond Plus
Bond Plus is for the first time home buyer who does not have
sufficient cash for a deposit or registration fees and property
transfer costs. Bond Plus also offers loan payment terms of
up to 30 years.
In the case of Bond Plus, 100% financing is provided plus
another 8% for registration and transfer costs while the choice
of interest rates is limited to a fixed rate and variable
rate. Repayments are carried out by debit order or stop order
while Bond Plus also allows Access to Future Use, Access to
Further Bond and Readvance as described in the Traditional
Home Loan
In order to be eligible for a Bond plus Home Loan you have
to be a citizen of South Africa and earn a monthly income
of R10, 000 and meet with the Bank’s credit requirements
and also be younger than 49 years of age. An important point
to keep in mind is that Bond Plus applies only to residential
properties valued between R300, 000 and R2, 000,000 while
R240, 000 is the minimum amount of the mortgage.
FNB has pulled up their socks after getting a beating from
the investor community for not being able to meet their targets
and have managed to post a 12% normalized growth and credible
return on equity of 26% which is not bad at all.
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