The FNB Islamic banking residential property finance product provides you with Shariah-compliant finance for residential property and vacant residential stand or smallholding.
- Finance is offered in both personal and business capacity
- Share-block finance is not offered
- Finance period ranges from a minimum of 5 years to a maximum of 20 years
- Early settlement is possible
- Max age for finance – 65 years (if the applicant is 65 years old at the time of application, the maximum term offered is 10 years)
What Islamic banking property finance offers:
- A competitively priced deal
- Profit rates fixed for a year, reviewed annually
- The ability to make lump sum payments on an annual basis
- Possibility of re-advances upon anniversary
Upon receipt of all the required documents, the application is submitted for processing and full assessment. A team of specialists will be in communication with the client throughout the application process.
A final approval may be provided within 5 to 10 working days including the property valuation. Once final approval is granted an approval letter is forwarded to the client for acceptance. Upon acceptance, the bank’s attorney is instructed to proceed with registration. Registration may be complete within 10 to 12 weeks.
The FNB Islamic product is based upon the Diminishing Musharaka concept, whereby the agreement operates as follows:
- The bank and the customer jointly acquire or create a joint ownership in the identified property
- The proportionate ownership is usually decided by each party’s contribution
- The banks share is then divided into a number of units, with the understanding that the client will periodically purchase these units from the bank. This process will continue until the client acquires the banks entire share and becomes the sole owner of the property attorney stage
The following costs are associated with the finance application:
- New bond cost
- Initiation fee (once-off)
- Service fee (monthly)
- Attorney fees
- Deposit (if required)
All of which will be on the final approval and quoted at attorney stage
FNB Insurance Brokers now offers Takaful – a Shari’ah compliant alternative to conventional insurance. This allows you to finance your asset and allows for its protection by using a credible and competitive insurance product that is in conformity with the principles of Shari’ah.