FNB HOME LOAN NEWS

Affordable housing market positioned well for the future

FNB HOME LOANS - apply onlineThe dramatic rise in the value of residential property in recent times is changing the face of South Africa’s housing market.

Values have in some instances gone up three-fold in just two years. “Phenomenal growth in property value has boosted residential development in the country,” says First National Bank (FNB) Housing Finance CEO, Marius Marais.

According to Marais, even if the rapid rise in property prices eases, there are other growth markets. “The positive sentiment towards property is also extending into properties that were overlooked in the past – principally houses in townships,” he explains.

“For the first time township properties have become assets to their owners and a healthy sales environment is emerging. It is an arena in which FNB will expand its role of providing finance and helping to reduce the housing backlog.”

He continues: “With the residential housing market being highly finance-dependant, creating more flexible lending conditions in all areas is a key issue that will notably increase accessibility to housing.”

Despite the government’s significant achievement in the delivery of over 1.6 million houses in the 10 years since 1994, there is still a sizeable housing backlog in the country.

As part of on-going efforts to address the problem, on 31 March 2005, the Minister of Housing and the country’s four major banks signed a Memorandum of Understanding in which all parties committed to creating functioning housing markets in previously under-served areas, and to making home loan finance available and accessible to low-income customers. This agreement emanates from the Financial Sector Charter signed in 2003.

Different approaches and interventions have been applied to address the lack of adequate housing in the country, and as part of its commitment to these efforts,
FNB has diversified its product portfolio to include a home loan called SmartBond.

The offering aims to be inclusive by also serving the target market as defined by the Financial Sector Charter. SmartBond 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 a home loan, other key distinguishing SmartBond features include:

  • A 5-year fixed rate resulting in fixed monthly instalments
  • Affordable life insurance with no medical check required
  • Full loan amount plus bond costs
  • “FNB believes that broadening access to credit will not only increase the quality of life for ordinary South Africans, but also create tremendous opportunities for residential development – boosting the country’s urban housing scene by enabling the development of properly planned and quality suburbs,” says Marais.

    “Through owning property, more people will be able to grow their personal wealth. Property ownership is virtually a risk-free investment, so it’s a secure form of saving.” “Wealth creation for a broader base of South Africans is vital for the growth of the economy,” Marais concludes.


    An Fnb Press Release :
    First National Bank is a division of FirstRand Bank Limited.
    An Authorised Financial Services Provider.

2 comments on “FNB HOME LOAN NEWS”

  1. ALREADY HAVE BOND WITH FNB – WOULD LIKE TO REGISTER FOR E BUCKS.

    I WAS NOT AWARE OF E-BUCKS THEREFORE I HAVE NOT REGISTERED AS YET.

    YOUR ASSISTANCE WOULD BE MUCH APPRECIATED.

    MANY THANKS.

  2. I would like to know more about the access bond and how can I make use of it.
    Secondly, I would like to earn ebucks on my homeloan account – What must I do

    Reply

    Hi Eugene

    To answer your first question: An access bond is an account which allows you to have access to any funds that are available in your home loan.
    So for instance, if you look after your mortgage investment and pay in a little extra every month those funds are readily available to you. You can use the money for whatever you choose.

    Similarly, if your bond amount is lower than your current value of your house you can very easily get a re-advance on your home and use that money for other purchases or renovations. Click Here read more about Access Bonds

    And to answer your second question: To qualify for the ebucks bonus on your home loan you need to apply for an FNB home loan. You’ll need to speak to a Home Loan consultant for more information about this. Please complete this short form and a consultant will contact you.

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