FNB Home Loan Review 2023

The FNB home loan is a long-term mortgage with a repayment period of up to 20 years. Individuals earning R25,000.00 […]

FNB Home loans

The FNB home loan is a long-term mortgage with a repayment period of up to 20 years. Individuals earning R25,000.00 or more per month are eligible for the FNB home loan. Joint applicants with a joint income of R25,000.00 or more can also apply for the home loan.

Private clients can obtain their own specialised home loans, but they must have a minimum annual income of R750,000.00. Private clients have access to private lending, which means they have a dedicated private banker at their disposal.

The FNB home loan has a monthly service fee of R69.00; however, existing clients do not have to pay this fee. A one-time initiation fee of R6,037.50 is also required. Juristic persons pay an R240.00 monthly service fee.

The FNB home loans comes with different types of loans which we discuss below.

Home loan offers from FNB

FNB offers property finance solutions that cater to the needs of any type of individuals. Within the FNB property solutions, there is also Shari’ah property finance and foreign home loan.

Let’s look at property finance solutions that FNB has in offer for individuals and businesses.

1. Building loan

FNB Home loans

Looking to build your dream home? First National Bank has a solution for your home loan needs. With the FNB home loan, you will be able to build your dream home.

Like any other loan, each application is assessed on receipt of necessary documents in line with the bank policy and lending criteria. So before submitting your application for a building loan you need to ensure that you have a good credit record.

Highlights of the building loan

  • The building loan term is limited to 240 months. You cannot have an extension on your building loan.
  • Should FNB agree to assist, you need to have a 10% deposit of the total package. The total package includes land and building contract amount.
  • The deposit amount can increase depending on your credit profile and score.
  • 10% deposit is based on FNB’s assessment of the completed value of the property.
  • You have 12 months to complete the building.
  • Construction work must commence within the first 3 months following registration.
  • You are required to make repayments towards the capital amount as well as interest during the building period.
  • The variable interest rate will apply until the building is complete. After the building is complete you can then apply for a fixed interest rate.
  • Funds will be issued in stages of the building process. Payments will be limited to 6 stages of progress based on the work completed.
  • The builder must provide the builder’s all-risk insurance over the property until it is complete.
  • From the applicant, FNB will need you to provide the home owner’s comprehensive insurance that complies with FNB’s criteria.

When building a home there are expenses that you will need to cover. FNB has a list of expenses that comes with building a home. These costs are once-off and others are recurring.

Once off costs

Once-off costs are expenses that you will incur when building your home. For building loan purposes, the once-off costs that you will incur include:

  • Purchase price deposit
  • Architect fees for designing, drawing, and submission of plans to the local council for approval.
  • Builder or contractor fees for contract price which includes building cost, material costs, etc.
  • NHBRC enrollment fee which is paid by the builder to register the new home being built with the NHBRC.
  • Registration costs
  • Transferring costs
  • Postage and sundries
  • Deeds office registry fee which costs between R70 to R3000.
  • Loan Initiation fee
  • Transfer duty.

Monthly recurring costs

Recurring costs are those costs that you will need to pay on a monthly basis.

  • Municipal rates and fees
  • Monthly home loan repayments
  • Property Insurance
  • Life insurance
  • Household content insurance

2. Shari’ah / Islamic property Finance

FNB offers Islamic property Finance solutions. This product is available for anyone that uses Islamic banking as their option of banking.

Highlights of the Islamic property Finance

  • This product is subject to an Islamic banking base rate of 7%
  • The product is based on a diminishing Musharaka agreement. This agreement allows you to purchase the bank’s portion up to a period of 20 years.
  • Profits are fixed for 1 year and reviewed annually.
  • A refinance option is available on paid-up property.
  • Eligibility to purchase additional units of the bank portion at the anniversary date.

3. Foreign choice home loan

FNB foreign choice home loan is a product for non-residents and foreign nationals who want to purchase residential property in South Africa or for South Africans who are working and living in another country looking to buy a property in South Africa.

How the foreign choice home loan works

This product helps non-residents and foreigners to purchase property in South Africa. You can apply for this product as an individual or as joint applicants.

The product makes it possible for non-residents of South Africa, Lesotho, Swaziland, or Namibia who are not living in the common monetary area to buy property in South Africa.

Finance is also available for foreign nationals who are living in South Africa on a temporary basis. This inclusion is for those who have a working permit to work in South Africa.

When buying a property with a loan from FNB you will incur costs. These costs are listed on a table below.

4. Buying existing property

Individuals and businesses can get a home loan from FNB to buy an existing property. This financing option is the most popular and most common type of home loan.

You can apply for this loan as an individual or jointly. Depending on your income you will get a home loan that is suitable for your income. Trusts are also welcome to apply for this loan.

Highlights of the loan

  • Can get up 50% back in eBucks on your first home loan repayment.
  • Free property valuation conducted by FNB.
  • Offers flexibility. You can get additional funds.
  • The loan period is 20 years or less.
  • Comes with a choice of fixed or variable interest rates.
  • Can opt for different repayment methods.

Advantages of the FNB Home loan

  • There are different types of home loans available. 
  • Private clients get private banking benefits. 
  • eBucks points can be earned. 
  • Existing clients don’t pay monthly service fee. 

Disadvantages of the FNB Home Loan 

  • The minimum income requirement is high. 


FNB home loans come in different forms. There are options for different lenders and FNB has included Islamic banking to its home loans.

By taking out an FNB home loan you will qualify to get cashback in eBucks. This return is something that you don’t get every day. You get a chance to redeem some of your repayments in eBucks and can be up to 50% of your home value.

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