HOME LOANS NEWS: FNB Home Loans
First National Bank (FNB) HomeLoans are committed to providing affordable housing and homeownership opportunities to all South Africans and particularly those falling into the low-income market. Thatâ€™s why this leading SA Mortgage provider has introduced a number of non-traditional housing finance options to their portfolio.
The new FNB Mortgage Options include:
- Smart Housing Plan to help employees leverage off the strength of their pension/ provident fund savings so they can own a home of their own during their working lives.
- Smart Bond from FNB Housing Finance is able to plug the gap in the affordable housing market.
These home loan products typically offer alternative, more flexible finance and payment options, enabling those who would otherwise not qualify for a traditional mortgage, to buy property.
Smart Housing Plan â€“ FNB Mortgage
The Smart Housing Plan is an innovative lending solution, designed to leverage pension, provident and retirement funds as collateral for beneficiaries to raise a loan to buy or renovate an existing home.
â€œUnlike a traditional mortgage bond, a Smart Housing Plan loan is particularly effective because it lends money, based on the strength of the individualâ€™s Fund balance, with interest rates negotiated at a Fund level. This enables FNB to offer customers lower interest rates on their loan, making housing more affordable than if we were to make them a loan in their individual capacity. By looking at the strength of their Fund we are also able to grant housing loans to many who would not otherwise qualify for a home loan. This product also takes into account the community orientation and customs of the people we serve, for example, they can purchase a home on tribal property,â€ says LinÃ¨ Wiid, CEO Mainstream Transactional Banking.
Smart Bond â€“ FNB Mortgage
This product is designed for people earning a single or joint gross monthly income of between R2 500 and R10 000. Over and above easy access to housing finance, other key distinguishing Smart Bond features includes a:
- Five year fixed rate resulting in fixed monthly instalments. The benefit of this feature is that Smart Bond customers are not adversely affected by interest rate hikes.
- Affordable life insurance with no medical check required.
- Full loan amount plus bond costs.