FNB home loans - What you need to know

Arguably the originator of South African banking, First National Bank was conceived in 1838 in the small, Eastern Cape, university town of Grahamstown. FNB is one of the four largest banks in the South African banking industry,more than 140 years later.

Becoming a wholly South African-owned and -controlled entity,FNB metamorphosed from Barclays in 1968.

As recently as a year ago, strategies were sometimes controversial but FNB stuck to its underlying mission of trying to help the customer (sometimes pig-headed) South African consumer. When First National Bank announced it was reassessing bonds where homes had not yet been transferred, the brown smelly stuff really hit the fan. The bank's intention, however, was to go where no bank had gone before - to themselves prioritize clients' long-term capacity to pay off their mortgage in an increasingly difficult economic climate. Why, argued FNB, albeit not in so many words, should we actively help customers dig themselves into a financial hole they will never get out of?

Let's take a look at some of FNB's home loan options: the Traditional Home Loan, the Building Loan and their home loan optional add-on features and tailor-made solutions.

The basic building block that provides finance to purchase a home is the Traditional Home Loan. It's a flexible home loan that can be adapted with a host of add-ons in a myriad of ways to suit your personal needs.

he Traditional Home Loan structured,so how is it? You and your partners, should have at least a joint income of R10,000. If you wish to buy a property it should be worth at the minimum R300,000. Finance is offered for up to 100% of the property value, you can select your loan term for up to 30 years and interest rate options include variable, fixed and BA-linked. Future Use and FlexiBond options allow you to tailor this loan to your needs so that you can draw cash against your loan but remain in control of your debt without becoming unwittingly drawn into a financial scenario you can't afford.

At anyone who wants to build their own dream home but needs a little help getting started,the classic Building Loan is aimed. After you've built the house, the construction bond converts to a standard mortgage.

You will get up to 100% of the building contract price (including the land) and you get breathing space with up to six progress payments so you can ensure the building process can stay on track. The building Loan repayments are interest-only repayments until the last payout. You can choose your loan term for up to 20 years The interest rates are limited to variable until the building process is complete, but then you get to choose your rate. You will need to make sure your home is built by a registered builder. FlexiBond add-on options give you the same flexibility as the Traditional Home Loan

Your family growing, your career advances and your lifestyle changes may change your housing needs. You want a home loan to help you handle your personal needs, and FNB knows all about this.

FNB is like your uncle of the home loans business, has plenty of experience in the global financial marketplace and is proudly South African.