Tuesday, 11 June 2013

FNB Home Loan requirements for Non-Resident application to purchase property in South Africa

If one or more of the applicants are Foreign National or Non-residents, the application will be treated as a
Foreign Choice application.

Non-Residents:

A Non-Resident is a person who is not a South African and who is living and working abroad.

Requirements:

  • Valid Passport, i.e. with a future expiry date
  • 50% of purchase price has to be introduced from abroad. These funds should be paid by the applicant to the registering attorneys and proof of this deposit is required for the Excon application
  • Excon approval will be required before the loan can be finally approved
  • Excon application fee of R1140 payable by applicant
Foreign Nationals:
A Foreign National is a person who is not a South African and lives and works in South Africa on a temporary basis.

Requirements:
  • Valid Passport, i.e. with a future expiry date
  • 50% deposit and proof of the source of these funds must be provided to the registering attorneys
  • Valid temporary residence permit, i.e. with a future expiry date. Please note that application for a new temporary residence can be conducted 3 months prior to expiry. An expired temporary residence permit will delay registration
  • Employer’s letter confirming employment in South Africa
  • A Foreign National Declaration signed at the bond registration attorneys
  • An active primary cheque account with FNB for at least 6 months

Foreign National and Non-resident exclusions:

Lesotho, Swaziland, Namibia and South Africa are part of a Common Monetary Area and therefore, applicants from Lesotho, Swaziland & Namibia will be treated as South African applicants;

  • Juristic entities excluded
  • Additional properties excluded. Foreign Choice is only available on a NEW property, and only one property may be registered with the bank
  • Switches from another financial institution excluded

Foreign National and Non-resident access to funds:

Non-Residents & Foreign Nationals are not allowed to access funds from the home loan after the initial payout is made on registration of the bond. This includes Flexi Option, Future Use, Prepaid, Readvance and Further Loan.

If you need further assistance, please fill in the online form here - http://www.wizardmidrand.com/home-loans/bond-application-form.html

3 comments:

Anonymous said...

I am from Switzerland can I get a home loan in South Africa and at what interest rate? Hans Sviggelar

"The MAGE" said...

Hello Hans

yes you can however it will be a 50% mortgage. That is 50% of the purchase price. The interest rate will be quoted at time of application but you can work around 8.5% to 9%

apply online here and a consultant will assist.

Miles Van Eeden said...

I am a South African working abroad (expat) what kind of bond cover am I likely to achieve and what possible complications should I foresee and how will I be assessed with regards to interest rate?