FNB Home Loans Qualifying Criteria

1. Individual: Minimum monthly income of R25,000
2. Joint Application: At least one applicant must earn a minimum of R25,000 per month
3. Must be 18 years or older
4. Must have a clear credit record
5. Must meet affordability requirements
6. Must have the legal capacity to enter into a contract

FNB Home Loans Application Documents Required

• South African ID
• Proof of income (self-employed individuals need 5 years of business financial statements)
• 6 months’ bank statements (for non-FNB customers)
• Proof of residence (e.g., municipal bill, Telkom account, or income tax form) or proof of housing subsidy (if applicable)
• IRP5 for proof of additional income sources
• Proof of residence certificate (if relevant)

A Step-by-Step Guide in Buying Your Home With FNB:

Purchasing a home is likely one of the biggest financial decisions you’ll ever make. Securing a pre-approval helps you understand exactly how much you can afford, making the home-buying process smoother and more informed. With pre-approval, you’ll know your potential loan amount, allowing for clear budgeting as you begin your property search.

Get Pre-Approved
You can easily apply for pre-approval by visiting nav > Home on the FNB App.

Do Your Research
Before diving into property listings, it’s important to have an idea of property prices in your desired area.
Access an area report through nav > Home on the FNB App to better understand market trends.

Know Your Property’s Worth
It’s crucial to be informed about the average property prices in the area you’re considering. This helps you assess whether the asking price of a property aligns with market value. If you feel the price is too high, don’t hesitate to ask the agent for clarification or walk away if you’re unsatisfied.

READ ALSO: African Bank loan application

Stick to Your Budget
Avoid the frustration of viewing properties outside your budget. It’s tempting, but focusing on homes within your price range will make the search more manageable and stress-free.

Use the Home Loan Repayment Calculator
Use the home loan repayment calculator on nav > Home in the FNB App to get an idea of your potential monthly repayments. This can help you decide whether the property fits within your financial comfort zone.

Costs and Fees Associated with Buying a Property

When purchasing a home, there are various costs to consider, including:

Deposit: A payment to secure the property, covering the difference between the loan amount and the purchase price.

Registration Costs: Fees for registering the bond, including paperwork, FICA checks, and lodging the bond at the Deeds Office.

Transferring Costs: Paid to the seller’s nominated attorney for transferring ownership.

Postage & Sundry Costs: Additional costs for documents and certificates required for bond registration.

Deeds Office Registry Fees: Fixed fees for the official registration of the property and bond at the Deeds Office.

Transfer Duty: Payable on properties valued at R900,000 or more, this is calculated as a percentage of the purchase price and must be settled before registration.

RELATED LINKS: fnb loan application

FNB offers support by covering a portion of switching costs (registration/attorney fees up to the original bond amount), providing competitive rates and exceptional service when you apply via nav > Home on the FNB App.

Understanding Your Credit Score

Your credit score plays a key role in your home loan approval and the interest rates offered. A higher credit score indicates better credit health and could lead to lower interest rates. If your credit score is low, consider improving it by consistently paying bills on time.

Monthly Costs to Anticipate

Owning a home involves more than just the home loan repayments. Here’s what to expect:

Monthly Service Fee: Charged by the bank for administering your home loan account.

Life and Disability Insurance: Covers your home loan in case of death or permanent disability.

Monthly Home Loan Repayments: The main loan repayments towards your home loan.

Comprehensive Insurance: Protects your property from damages like fire, floods, or plumbing issues.

Levies (if applicable): Fees payable to a Home Owners Association or Body Corporate if you’re buying in a sectional title development.

Municipal Costs: Monthly payments for rates, taxes, water, electricity, and refuse collection, plus an upfront deposit to activate municipal accounts.

Maintenance Costs: It’s wise to save for any upkeep or repairs your property may need.

Important Terms to Know

Service Fee: A monthly fee charged for maintaining your home loan account.

Municipal Costs: Includes rates, taxes, utilities, and any deposits required by the local municipality.

Commission: Paid to estate agents or intermediaries involved in buying or selling property.

Cancellation & Registration Costs: If switching home loans, FNB covers these costs and can extend your bond term up to 20 years.

Capital Gains Tax: Be mindful of potential taxes, especially if the property is not your primary residence, as determined by the South African Revenue Service (SARS).

Legal Entity Status

A legal entity refers to an individual or organization allowed to enter into contracts, and may be held liable if they fail to fulfill their obligations. In the context of home loans, you become a legal entity with the bank when you sign the loan agreement, and the mortgage bond is registered in your name.