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

Common Debt Pitfalls - get a home loan!

Here is a list of the most common debt pitfalls that South Africans tend to make – avoid these and turn your

credit record around, and before you know it you will be able to approach a home loans advisor to assist in applying for that bond to buy your dream home.  Thank you Wizard Midrand for this article.

Here’s a list of the eight most common financial errors made by South Africans which you should avoid at all costs:

·         Consumers automatically take for granted that interest rates will not go up when they buy a property – this is when they make the mistake by buying a property above their means.

·         Males in South Africa often go to micro lenders to finance their “lobola” which means that traditional weddings often start off on a bad financial note.

·         Having a home repossessed is perhaps one of the most debilitating things that can happen to anyone, and often people are too afraid of what the Jones’s will say; this leads to many home owners dragging their feet to move to a smaller more modest abode.

·         The home that is affordable is usually replaced by a rental option that is just as upscale and as expensive – all this to save face!

·         Using a balloon payment option to finance an expensive car is insanity, but it is done more often than not. The sad reality is that many of these individuals driving around with their expensive “balloon financed” vehicles cannot even afford to replace their tyres; these cars are then traded in at a loss and in the end the car owner loses a substantial sum of money.

·         Money is a taboo topic in many relationships which is only discussed once funds have run dry - it is a fact that many marriages break down to a lack of communication, especially when it comes to money.

·         If you owe creditors money, random debt payment is not the way to go forward – rather put together a solid repayment plan and stick to it at all costs.

·         The creditor who shouts the loudest usually gets paid first – remember to stick to your plan to ensure you become debt free in the near future. And for heavens sake get a free credit report.

Don’t guess what you owe in total – work out a plan, stick to it and work out what you owe your creditors in total. This way forward will ensure that your credit record is corrected over time, making you bond ready when applying for home loans.

Ten easy Steps to Live within Your Means to Get a Home loan and Bond Approval

A great bit of advice from one of the top bond originators.

Applying for a bond in today’s world is quite a challenge, as is the case with all credit. A little bit of preparation prior to applying will ensure you are bond ready, plus you will learn how to live within your means. 

Bond requirements are getting tougher, therefore it will do little harm to call on the services of home loans advisors, as they will be able to offer some really pertinent advice and they are experienced professionals who really know exactly what the banks are looking for when applying for a home loan.

Here are ten steps that will teach you to live within your means – bear in mind that living a debt-free life will lead to getting the bond you need to buy your dream home:

·        Thanks Wizard Midrand for this advice and original article/

Teach yourself to live within your means prior to applying for a bond, then approach a bond originator to assist in accomplishing that dream.

Just can't get the banks to give me a home loan

If you are battling to get a bank to give you a home loan, there is a definite formula to get past this; building up a good credit record is of course the first step in the right direction.

First things first - you will need to build up a good credit record. Many of us are freelancers or work for ourselves – and this is often a huge obstacle if you need to get credit, whether for a home loan or credit for other uses and needs.

Financial institutions want to be certain that you will be in a position to pay your home loan without any problems or difficulties. This is the reason why they scrutinize all your finances really closely and also examine and analyse your income and expenses by using an average on your earnings over a six month period to determine whether you will or will not be able to afford the monthly installments.

If you earn commissions, are a freelancer and your monthly earnings fluctuate, banks will adjust the average earnings down to cater for these ups and downs and will give consumers a fair opportunity to meet the loan agreement.

Banks and lenders always choose the more conservative approach to ensure that applicants will be able to cater for fat months as well as lean months.

If you are thinking of applying for a home loan chances are that the financial institution you approach will go as far back as two years into your credit history. This is to find out whether you are a good payer and up to speed on all your credit agreements. This information is then used to calculate their risk in lending you the money – but there is nothing that formally states that borrowers need to have a credit history to qualify for a home loan.

A problem will aris is if you have no credit anywhere and you have an income that fluctuates due to the fact that you are a commission or freelance worker; you will then have issues trying to get that essential home loan.

Wizard Midrand is here to assist and to guide individuals no matter how they earn their bread and butter – let us take your home loan to the next level; our professional team will do all the leg-work on your behalf, bringing you closer to owning that dream home you always longed for.

Standard bank and 100% Homeloans

It has been quite some time since the banks have offered 100% loans unless you were a client

of theirs and the good news is there seems to be a swing in the opposite direction.

Is this because the mood and sentiment is at a low ebb and clients are moving away from there traditional banks for other savings havens?

Never sure, but the decision by Standard bank to offer 100% home loans to non- standard bank clients in April 2013 is a definite positive swing.

so what do banks offer in general:

Firstly, this changes often so call your broker or call your mortgage originator first,

But as it stands: Remember other conditions always apply.

Standard Bank 100% home loans to all
FNB - will consider 100% home loan to all but favour their own clients
ABSA - will consider 100% home loans to all, but favour there own clients
Nedbank - Only for Nedbank clients
Investec - for Investec clients or meeting strict criteria
SA Home Loans - will consider but more like a 90% loan

Other kinds of offers in general are - These can change

-       Investment property usually max. 75%

-       Self employed clients usually max. 85%

-       Foreign applicants with no green ID books max. 50%

-       Foreign applicant married to South African max. 50 -75% (South African must be higher income earner)

-        Vacant Land 60%