Why do I need this?

To cater for Islam’s prohibition of the use of Riba (interest), FNB Home Loans has developed IslamicFinance home loans which is ‘Shari’ah’-(Islamic Law) compliant.

FNB IslamicFinance offers a Wakalah (Agency Agreement) contract that allows it to act as an agent when purchasing property on your behalf, for a fixed agency fee. An agency agreement is concluded and all the charges and fees are levied through this agreement.
What can l do with it?
Benefits of the IslamicFinance Home Loan
  • All profit is disclosed and you are not exposed to any market changes
  • You can budget accordingly as IslamicFinance Home Loan installments are fixed for the entire period of the loan
Features of the IslamicFinance Home Loan
  • You can request loans from R240 000 upwards
  • You have the option to repay the loan over 5, 7, 10 or 20 years
  • A profit amount is added and differs according to the loan term
  • Repayments are fixed over the period you qualify or opt for
  • IslamicFinance can finance the purchase of an existing property (new home loan)
  • Switches from other institutions as well as from FNB are financed up to the outstanding balance
  • Switching costs are not carried by FNB IslamicFinance

Excluded under the IslamicFinance Home Loan In keeping with Shari’ah Law, the following are not permissible:

  • Further Loans
  • Re-advances
  • Flexi facility
  • Building Loans

What will it cost?

The following costs apply to the IslamicFinance Home Loan: Registration and transfer costs
  • A once-off processing fee
  • Monthly admin fee

Do l qualify?

The IslamicFinance Home Loan caters for the Muslim community in particular, but is not limited to the Muslim community

  • All customers are subject to normal lending criteria
  • A deposit is required
  • Customers must be KYC compliant
  • Monthly repayment is by debit order

You can get this at ?

Mortgage Plus cc (011) 327-4489

What do I need to do?

You need to provide the required documentation to allow us to assess your application:

  • A copy of an Offer to Purchase (if applicable)
  • Proof of income
  • If self employed you will need to provide 6 months’ bank statements., two years comparative financial statements, and a letter from your CA confirming salary
  • Proof of residence in the form of a municipal utility bill
  • Copy of your identity document
  • Applicant must be between 18 and 55 years
  • Marriage certificate

Legal

Once your home loan has been approved, the process leading up to registration of your bond with the SA Deeds Registrar (Deeds office) is rather complicated, but fortunately it usually runs its course without you having to get involved. This process is as follows:

  • Once approved, the bank instructs the bond attorney to start registering the bond.
  • The seller advises the transferring attorney to transfer the property. Title Deeds and cancellation figures are requested from the bank currently holding the bond. A rates clearance certificate for the property is requested from the local authorities/municipality.
  • The bond attorney contacts the transferring attorney and advises of the amount available for guarantees and they request the draft transfer deed and guarantee requirements.
  • The cancellation attorney is requested to cancel the seller’s bond on receipt of a guarantee for the outstanding amount.
  • Once the transferring attorney has received the Title Deed and cancellation figures, the buyer and seller sign the transfer documents.
  • The buyer pays the transfer costs to the transferring attorney.
  • The bond attorney prepares the bond documentation and the buyer signs these documents and pays the costs. The bond attorney lodges the documents at the Deeds Office.
  • The Deeds Office receives all documentation and checks it before it is registered.
  • The bank pays out the loan on the day of registration.

This process can take up to 3 months.

To apply for your Islamic Home Loan please go to:

http://www.mortgagepluscc.co.za/home_loans.php