FNB has launched an industry first property lending solution that allows up to eight members to buy property as a collective for residential purposes.
CEO of FNB Retail, Raj Makanjee says, “Buying a home is one of the most fulfilling long-term investments that most people will ever make. Even though interest rates are at record lows, the global pandemic has made it increasingly difficult for aspiring homeowners to afford properties. Through the launch of the Collective Buying solution, we aim to bridge the gap in the market and help all customers realise their ownership dreams with ease.”
Lee Mhlongo, CEO of FNB Property Finance, says, “ Our records show that when a customer considers purchasing a property, they tend to forget all the other additional costs included in their home loan such as registration costs, transfer duties and sometimes a deposit, presenting more barriers for one to afford the property. The advantages of buying a property collectively with friends and family means that customers are now able to share the costs equally to make the purchase and the process affordable. Another advantage is that customers will also enjoy reduced monthly repayments and personalised rates.”
To kick start the home loan application journey, customers can submit the application via the FNB App on nav »Home. This permits up to 8 applicants, inclusive of applicants who are married in Community of Property (COP) to be added. Should the number of applicants exceed 8 parties, this can be applied directly via the FNB channel such as a branch.
Once the application has been submitted, the bank will review each customer’s credit profile including the nature of income, expenses, household size and affordability. These are assessed in conjunction with credit bureau profiles and the information on the account conduct with various creditors and banks. The solution allows for customers to elect and deposit funds directly into one transactional account and to run debit orders or to request a stop order payment from their transactional accounts.
Furthermore, FNB has split billing functionality which allows multiple parties to pay on various dates at specified contributions.
“We urge customers to take advantage of buying as a collective and start their journey to own property. This is another way we are helping our customers to own their dream home and unlock their wealth creation journey, through investing in property as a group. Customers that fall within the ‘gap housing market’ whose income is between R3 501 – R22 000 are still encouraged to consider FLISP, a government home ownership assistance programme. The benefit of a cash contribution from such a programme can significantly reduce the financial burden on households,” Mhlongo concludes.