Name of the Organization : First National Bank
Type of Facility : Apply For Building Loan
Country : Zambia
Website : https://www.fnbzambia.co.zm/
How To Apply For Building Loan in Zambia?
Must be between 21 and 55 years old
Related / Similar Facility : Apply For Smart Loan Zambia
Let us help you through the entire process of building your dream home. We’ve made it easier for you to build a new home or make improvements to your existing one.
What the Building loan offers me:
** You can build your dream home to your own specifications using a NCC (National Construction Council of Zambia) registered builder
** You could buy in selected new residential development with a choice of design, price and finishes that will suit your needs (excluding Sectional Title units)
** The ability to build, alter, redecorate and increase the value of your property if you have just bought a property and do not have funds at your disposal
** Payout on progress payments controlled by FNB, as per your instruction
** Interest that is charged on the outstanding balance and not the total loan amount
What this allows me to do:
** Change your Building Loan to a normal Home Loan once the building is complete
** Build a home with an NCC registered builder
** Make alterations to an existing home
** Buy ‘off plan’ in any new development (excluding Sectional Title units)
Who Can Apply For Building Loan in Zambia?
Qualifying Criteria:
** Applicant must between 21 and 55 years old
** Clear credit record
** The finance must be used to build or alter a residential property
** The building loan is only available to individual, joint applicants and property owning juristic entities. e.g. Sole proprietary partnerships and private companies
** The builder, contractor or subcontractor must be registered with the NCC (National Construction Council of Zambia) for all new dwellings.
** An upfront deposit portion will be required by the bank to make up the deficit/ shortfall. This will be the difference between the cost of the project and the amount granted by the bank. A minimum deposit of 10% of the total package price (land + contract amount) is required in all instances. The deposit will be based on the lower of the total package price, or FNB’s assessed market value on completion.
How Does It Work?
** You have 12 months to complete the building. Construction work must commence within the first 3 months following registration.
** Your loan term is limited to 240 months.
** You only pay interim interest on the Building Loan until the building is complete. Once it is complete normal capital and interest payments become payable. If the construction period takes longer than 12 months, interest and capital become payable once the 12 month period allocated to the construction expires (unless the customer has obtained approval from the bank to extend the building period).
** You will be limited to the variable interest rate until the building has been completed. On completion of the building, you may apply for a fixed rate.
** You can apply for progress payments at any stage during the construction process provided that sufficient work has been completed and the bank is satisfied with the progress. A maximum of six progress payments will be allowed, based on the work completed.
** The application will be assessed on receipt of the necessary documentation in line with the policy and lending criteria of the bank. Assuming the bank is in a position to assist, a minimum deposit of 10% of the total package price (land + contract amount) is required in all instances; this however could increase – dependent on the credit profile score of the applicant(s). The deposit will be based on the lower of the total package price, or FNB’s assessed market value on completion. If the applicant’s credit profile score determines a loan to value amount less than 90%, no amount is redeemable at the end of the construction period. If for any reason during the period of construction, the applicant(s) credit profile deteriorates, the bank reserves the right to retain the redeemable amount.
Responsibilities:
** Inform the builder and the bank of any problems, concerns or delays in the building process. The bank will not act as clerk of works on your behalf and in need, you may want to appoint a suitable, qualified professional person to supervise or oversee the project. It is important to note that you have appointed the builder, and all disputes are to be discussed directly with the builder and the NCC where deemed necessary.
** Ensure that the contract you sign with the builder does not comprise of conditions which will be prejudicial to you. In need, consult with a legal advisor or a suitably qualified professional to assist you before signing the contract.
** Request progress payments only if you are satisfied with the progress and the amount requested by the builder.
** Service your interim interest by making regular monthly repayments for these amounts as this will avoid any shortfall that may occur.
** Ensure that you and your builder understand all the bank’s loan conditions and that all the conditions are being complied with at the times required/stipulated by the bank.
** Ensure that, on completion of the building, your Home Owners Comprehensive Insurance Cover is in place. The Contractor’s All Risk Insurance Cover only provides cover from the date when construction commences until date of completion/occupation.
Important points to consider:
** The project must be enrolled with the NCC (National Construction Council).
** The principal contractor must be registered with the NCC.
** FNB Home Loans will NOT finance ‘owner-builders’.
** Unconventional construction methods will not be considered, unless prior approval is received from FNB Property Valuations Department.
** Building operations must commence within 3 months after registration of the mortgage and must be completed within a further 9 months thereafter. Building to be complete within 12 months following registration.
** The building contractor must carry Contractors All Risk Insurance Cover and proof thereof must be submitted to the bank.
** A property valuer will inspect the building progress with each progress payment request and will report to the bank accordingly, prior to any progress payment being made.
** Interest rates are limited to variable until the building process is complete
** It is mandatory that Building Loans interest payments are settled via debit order or salaried stop order, and the responsibility for any interest payments rests with the mortgagor.
** The application will be assessed on receipt of the necessary documentation in line with the policy and lending criteria of the bank. Assuming the bank is in a position to assist, a minimum deposit of 10% of the total package price (land + contract amount) is required in all instances; this however could increase dependent on the credit profile score of the applicant(s). The deposit will be based on the lower of the total package price, or FNB’s assessed market value on completion. If the applicant(s) credit profile score determines a loan to value amount less than 90%, no amount is redeemable at the end of the construction period. If for any reason during the period of construction, the applicant(s) credit profile deteriorates, the bank reserves the right to retain the redeemable amount.
What Documents Need?
** On Date of Application
** A signed offer to purchase from FNB approved developers
** Proof that the applicant is between 21 and 55 years old
** A clear credit record
** The finance must be used to build or alter a residential property
** The building loan is only available to individual, joint applicants and property owning juristic entity. e.g. Sole proprietary partnerships and private companies
** Proof that the builder, contractor or subcontractor is registered with the NCC (National Construction Council of Zambia) for all new dwellings.
** An upfront deposit portion will be required by the bank from the customer to make up the deficit/ shortfall. This will be the difference between the cost of the project and the amount granted by the bank. A minimum deposit of 10% of the total package price (land + contract amount) is required in all instances. The deposit will be based on the lower of the total package price, or FNB’s assessed market value on completion.
** A Declaration of debts
** A letter from your employer
** Prior to Registration of the Bond
** FNB Waiver of Builders Lien
** Proof of Contractor’s All Risk Insurance Cover
** Prior to any Progress Payments from the Loan
** BOQ schedule of work completed
Apply:
Call me back: https://www.fnbzambia.co.zm/
Need
** Signed offer
** Age between 21 & 55
** Clear credit record
** Build or alter resident
** Available to individual
** Registered builder
** Upfront deposit portion
** Declaration of debts
** Employer’s letter
** Waiver of Builders Lien
** Contractor’s Insurance
** BOQ schedule of work
Contact Us:
Call +260 211369 309, +260 211 369 312