FNB Home Loans
First National Bank offers several different types of home loans including Traditional Loans, Foreign Choice Loans, and Smart Bonds. Each of these loans are applicable to a different type of clientele, but all have the common goal of real estate ownership. With so many loans to choose from, it is not surprising that prospective homebuyers find the financing process both stressful and confusing. First National Bank’s goal is to offer several choices for buyers so they can easily find a home loan that meets the buyers’ needs and hopefully exceed all expectations.
Traditional Home Loans
Traditional Home Loans are the most common of the numerous loans offered by First National Bank. Prospective real estate buyers who do not have sufficient funds to finance the residential properties and structures that they desire use Traditional Home Loans. There are many sub-types of FNB’s Traditional Home loans; the most popular of these sub-types include Flexi-Option, Readvance, Pre-Paid and Future Use Loans.
The Flexi-Option loan allow the borrower to make extra payments toward their loan without any sort of penalty and also allow access to the extra money at any time it is needed. Re-advance Loan, similar to the Flexi-Option Loan, allows the home buyer access to money, when it is necessary, up to the original loan amount, after the principle has been paid down by the set monthly payments. The Prepaid Loan, also similar to the Flexi-Option loan allows the withdrawal of funds that have been paid by the borrower in excess of their monthly payment, making the Prepaid Loan similar having a savings account connected to the original loan. Lastly, the Future Use Loan is a type of Traditional Home Loan that allows the homebuyer to register a bond that is of a higher amount of money than what is needed to purchase the dwelling, allowing the borrower to have access to excess funds when needed, without having the hassle of applying for a second mortgage.
Foreign Choice Loans make it possible for foreigners or ex-South Africans living abroad to purchase real estate in South Africa without having to become a citizen. This loan is somewhat different in that it requires a 50% down payment, as the Foreign Choice Loan will only finance 50% of the purchase price of the property.
The last type of home loan that will be discussed in this section is the Smart Bond. This loan is specifically for lower income applicants and it will allow them to borrow 100% of the purchase price of the residential property in question. That is, there is no down payment required when FNB finances a home for qualified applicants of the Smart Bond Loan. The payment of this loan type must be directly taken from the applicant’s payroll and sent directly to the bank is one of the main differences of the Smart Bond Loan compared to the other types of home loans.
As is evident by the above loan types, First National Bank offers a real estate loan for every prospective homebuyer. Having several different types of loans available makes the financing portion of the property purchase simple and less stressful, which makes for happier and more satisfied customers, which is the true, underlying goal of First National Bank.