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.

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