If you need a FNB home loan then you should read this!

January 20th, 2009

You need a home loan to address your individual requirements and FNB has taken cognizance of this. FNB Home Loans metamorphosed from Barclays in 1968, becoming a wholly South African-owned and controlled entity.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. The brown smelly stuff really hit the fan,when First National Bank announced it was reassessing bonds where homes had not yet been transferred. 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 Traditional Home Loan is the basic building block that provides finance to purchase a home. It is a flexible home loan that can be specifically tailored to suit your own requirements with a huge amount of optional extras available. Do you have any idea about the structuring of the Traditional Home Loan? Will need a minimum joint income of R10,000,you, or you and your partner. The real estate you decide to purchase should be worth a minimum of R300,000. You can select your loan term for up to 30 years and interest rate options include variable, fixed and BA linked to finance is offered for up to 100% of the property value. 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. The classic Building Loan is aimed at anyone who wants to build their own dream home but needs a little help getting started. Once the property is up, the bond reverts to a traditional home loan.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. You can choose your loan term for up to 20 years and the building Loan repayments are interest-only repayments until the last payout. 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. Future Use and FlexiBond have extra options that can be used to modify your loan to give you as much flexibility as a traditional home mortgage when you have less cash on hand. Your housing needs are unique and they change as your family grows, your career advances and your lifestyle changes. FNB is your uncle in the home loans business, has plenty of experience in the global financial marketplace and is proudly South African.

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