Opportunities to own homes

In a bid to tackle the affordable housing challenge, FNB is actively collaborating with various stakeholders to create more opportunities for first-time buyers to own their dream homes.

Consequently, there has been a significant increase in the number of new FNB home loans generated through employer-backed partnerships over the past two years.

FNB home finance division channel head: housing schemes Mpho Ramatong says these important partnerships, commonly known as “housing schemes”, are aimed at making home ownership a reality for more consumers in SA through subsidies and other benefits such as special terms on loans and rental assistance programmes.

“Employer-backed partnerships have created an environment where corporates and lenders can work together to reach more consumers and provide them with sustainable access to homes. As a result, our current business model and solutions enable us to offer first-time home buyers, including those who would not have qualified under normal circumstances,

100% bonds,” Ramatong adds. Furthermore, the agreements offer flexibility as they can be adapted for a particular organisation’s needs which creates more room for innovative solutions that aren’t constrained by traditional lending models.

First-time buyers who earn a household income between R3,501 and R15,000 per month also qualify for the finance linked individual subsidy programme from the government which offers qualifying consumers subsidies ranging between R20,000 to

R87,000 once off, provided that they haven’t benefited from a government subsidy before.

In addition FNB offers first-time home owners compulsory education on home ownership.

FNB’s home owners programme is offered in four convenient formats:

60% eLearning is completed through online training;

35% of the training consists of a self-study pack (DVD, booklet and paper assessment);

1% is completed through classroom training. This used to be the dominant form of training, but has reduced since the implementation of eLearning;

4% of the training covers all aspects of the home loan including:

– Planning and what to expect in your home. This includes a quick introduction to rates and utility bills, maintenance and contingency planning, etc;

– The loan agreement;

– Interest rates (fixed vs variable and related consideration);

– What happens in the event of default. “Given the massive housing backlog, it has never been more important for various stakeholders to work together to identify sustainable solutions to provide affordable quality housing,” Ramatong concludes.