FNB targets younger first-time home buyers

FNB has launched a market-first home loan solution designed to help qualifying graduates and young professionals get onto the property ladder sooner, by easing the financial pressures associated with the early years of homeownership.

It allows them to pay just the interest due on the loan for the first two years – with the interest at a more competitive fixed rate for that period.

This reduces the monthly repayments during the early stages of their careers, offering a more manageable, financially flexible path to first-time homeownership.

“Buying a first home feels out of reach for many young people due to the coupling of high property prices, with the financial pressure associated with full repayments from day one,” says FNB Home and Structured Lending CEO Chris Labuschagne.

“By giving customers, the first two years to settle into their careers with interest-only repayments and a fixed rate, we are enabling them to step into homeownership with confidence and stability.

“The solution helps with budgeting certainty and protects young buyers against rising rates for the initial period.

“This reflects FNB’s commitment to supporting customers at every life stage, starting with the foundation that matters most: a place to call home.”

Owning property is a proven step towards financial stability, and to amp up the excitement factor FNB includes a welcome voucher of up to R14 500 for groceries or home essentials.

The offer

Those under the age of 35 who have attained NQF Level 5 or higher qualifications can enjoy valuable benefits:

No capital repayments during the first two years – the homeowners will only pay interest, fees and home insurance (if applicable).
A more tailored and competitive fixed interest rate for the initial 24 months, locked in at registration to protect buyers from interest rate fluctuations.
A loan of up to 110% of the property value, helping customers cover both the property purchase price and bond-related costs when buying a home.
Smooth repayment transition after two years, with repayments adjusting to include both interest and capital.
Flexible loan terms of up to 30 years, allowing customers to choose a repayment plan that suits their budget.
50% discount on bond attorney registration costs when the home loan application is made directly via nav» Home on the FNB Banking App or when the customer is a first-time home buyer.

“We want young South Africans to start building generational wealth sooner,” says Labuschagne.

“This offering is our way of saying to our young customers, you don’t need to delay building your future.

“This newly launched home loan is designed to give graduates and young professionals room to start, room to grow, room to settle, and room to step into homeownership without overwhelming financial strain.”

Rewards

At the heart of the new FNB Home Loan offering are simple and meaningful rewards of up to R30 000 from its retail partners – designed to help young homeowners create their dream space from day one:

A welcome voucher worth up to R14 500 for groceries at Pick n Pay or home essentials at Cielo or Le Creuset;
Move-in day support with a R500 SweepSouth voucher for professional cleaning services or a R500 Mr D voucher for hassle-free meals; and
Milestone rewards each year totalling up to R15 000 until the ninth anniversary of the home loan.

These rewards ensure that young buyers can settle into a space that truly feels like home from the moment they move in.

“We understand the unique financial journey of emerging professionals, young people building careers while supporting families and establishing independence,” says Labuschagne.

“This is why we believe that owning a home is one of the most empowering financial steps a young person can take. We are proud to help them take that bold and confident step sooner.”

Who can apply, and how?

Eligible applicants under the age of 35 who have attained NQF Level 5 or higher qualifications will be presented with options to apply via FNB advisors, consultants, digital platforms, or any FNB branch and through mortgage originators.
All applications are subject to qualification verification, credit assessments, and a property valuation.
Rewards associated with this new home loan solution are applicable to qualifying customers who submit their applications directly through FNB internal sales channels.

Brought to you by FNB Home Loans.

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