Team up to buy a property with the FNB collective buying initiative– a first for Namibia
In a bold move to make homeownership more accessible, First National Bank (FNB) Namibia has introduced an innovative home loan solution that allows up to 12 people to purchase property together. Known as FNB Collective Buying, this offering aims to empower families, friends, and business partners to pool their resources and break through the financial barriers of individual property ownership.
Owning a home is a dream for many, offering financial stability and mental security. However, the high costs often make this goal seem out of reach. To address this, FNB Namibia has launched an innovative solution known as ‘Collective Buying’, allowing groups of up to 12 individuals to jointly purchase property, whether for residential, commercial, or investment purposes.
The benefits of ‘Collective Buying’ include but are not limited to: lower interest rates for collective buyers; no transfer duty on properties under N$1.1 million and shared maintenance costs, reducing individual financial burdens.
Rolandi van Wyk, Growth Manager for FNB Mortgage Loans, explains that the process is similar to a traditional home loan but tailored for multiple applicants. "Purchasing a home is a major commitment, and affordability is key," she says. "Each applicant is assessed based on their financial standing, ensuring they can cover their portion of the repayment." The approval process takes approximately 40 days, involving income verification, credit checks, and property valuation.
Applicants can choose to pay via one debit order or salary deduction, or they can opt for the split bill repayment function which allows in effect multiple debit orders to make up the repayment. “It is important to note, however, that as with any home loan, applicants remain jointly and severally liable and that the group must draft a legally binding agreement outlining responsibilities, exit strategies, and dispute resolution.”
The scheme is ideal but not limited to families pooling resources to buy a home for parents or siblings; friends investing in holiday properties (e.g., beach houses) while sharing costs and students & Parents co-owning accommodation near universities to reduce rental expenses to mention a few.
MANAGING RISKS AND LEGALITIES
Trust is crucial in collective ownership. FNB advises involving legal professionals to draft a watertight agreement covering scenarios like exiting the agreement, death of a member where free last will services are included. The bank provides advisory support, but conflicts must be resolved per the group’s pre-agreed terms.
Kirsty Watermeyer, FNB’s Communications Manager, says the product aligns with the bank’s mission to promote financial inclusion. "Homeownership builds generational wealth and reduces inequality," she says. This solution makes property investment accessible while ensuring responsible lending.
FNB Namibia is rolling out educational campaigns via social media, workplace seminars, and collaborations with influencers to demystify the process. "We want borrowers to make informed decisions," Watermeyer says.
REQUIREMENTS NEEDED
Interested groups must provide: IDs, proof of income (payslips or six-month bank statements for self-employed individuals); Marriage/divorce certificates (if applicable) and a co-ownership agreement.
Government employees using housing subsidies cannot apply under the scheme but may participate privately. For more information, visit FNB Namibia’s website or contact their home loans department.
The benefits of ‘Collective Buying’ include but are not limited to: lower interest rates for collective buyers; no transfer duty on properties under N$1.1 million and shared maintenance costs, reducing individual financial burdens.
Rolandi van Wyk, Growth Manager for FNB Mortgage Loans, explains that the process is similar to a traditional home loan but tailored for multiple applicants. "Purchasing a home is a major commitment, and affordability is key," she says. "Each applicant is assessed based on their financial standing, ensuring they can cover their portion of the repayment." The approval process takes approximately 40 days, involving income verification, credit checks, and property valuation.
Applicants can choose to pay via one debit order or salary deduction, or they can opt for the split bill repayment function which allows in effect multiple debit orders to make up the repayment. “It is important to note, however, that as with any home loan, applicants remain jointly and severally liable and that the group must draft a legally binding agreement outlining responsibilities, exit strategies, and dispute resolution.”
The scheme is ideal but not limited to families pooling resources to buy a home for parents or siblings; friends investing in holiday properties (e.g., beach houses) while sharing costs and students & Parents co-owning accommodation near universities to reduce rental expenses to mention a few.
MANAGING RISKS AND LEGALITIES
Trust is crucial in collective ownership. FNB advises involving legal professionals to draft a watertight agreement covering scenarios like exiting the agreement, death of a member where free last will services are included. The bank provides advisory support, but conflicts must be resolved per the group’s pre-agreed terms.
Kirsty Watermeyer, FNB’s Communications Manager, says the product aligns with the bank’s mission to promote financial inclusion. "Homeownership builds generational wealth and reduces inequality," she says. This solution makes property investment accessible while ensuring responsible lending.
FNB Namibia is rolling out educational campaigns via social media, workplace seminars, and collaborations with influencers to demystify the process. "We want borrowers to make informed decisions," Watermeyer says.
REQUIREMENTS NEEDED
Interested groups must provide: IDs, proof of income (payslips or six-month bank statements for self-employed individuals); Marriage/divorce certificates (if applicable) and a co-ownership agreement.
Government employees using housing subsidies cannot apply under the scheme but may participate privately. For more information, visit FNB Namibia’s website or contact their home loans department.
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