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New bank grant compliments government housing subsidies to help qualifying customers overcome affordability barriers
As South Africa continues to face an estimated affordable housing backlog of 3.4 million homes, access to homeownership remains out of reach for many aspiring buyers. To help address this challenge, FNB has launched the HomeFirst Grant™, an industry-first, bank-funded initiative that provides qualifying first-time home buyers with a capital reduction grant of up to R67,700 on their home loans, helping to lower the barriers to property ownership.
The FNB HomeFirst Grant is housing subsidy funded by the bank and does not need to be repaid, helping eligible first-time buyers get onto the homeownership ladder. Applicants earning a gross monthly income between R3 501 and R22 000 who have an affordability shortfall are automatically considered for the grant as part of the home loan application, helping to make the process simpler and more efficient for customers.
FNB CEO Lytania Johnson says the FNB HomeFirst Grant reflects the bank’s commitment to providing meaningful and practical support that helps more South Africans participate in the economy through sustainable homeownership. As part of FNB’s broader financial inclusion commitment, the initiative is designed to reduce affordability barriers and create more accessible pathways into the formal property market for first-time buyers.
“At FNB, we believe that financial inclusion is about more than access to financial services. It is about creating opportunities that enable people to participate meaningfully in the economy, build assets and improve their long-term financial wellbeing. For many South Africans, homeownership remains one of the most important milestones on that journey, yet affordability continues to place it out of reach for too many aspiring homeowners.”
“Access to housing is one of the most powerful enablers of financial inclusion, economic participation and intergenerational wealth creation. A home is often a family’s most valuable asset, providing stability, security and a foundation from which future generations can thrive.”
“Through the grant, we are providing real help by addressing one of the biggest barriers to homeownership. This initiative is a practical demonstration of our commitment to making homeownership more attainable, empowering more South Africans to build wealth, strengthen their financial resilience and participate more fully in the country’s economy,” she says.
The grant arrives amid persistent pressure on household finances, constrained economic growth and a shortage of housing stock. While demand for housing remains strong, affordability challenges and limited new property development continue to widen the gap between those aspiring to own homes and those able to do so.
Chris Labuschagne, Managing Executive of FNB Home and Structured Lending, says addressing South Africa’s housing challenge requires a sustained public-private effort.
“South Africa’s housing challenge is fundamentally driven by two realities: affordability constraints and an insufficient supply of affordable housing stock. While economic growth remains essential to improving household affordability, we also need practical interventions that enable more people to access the formal housing market today,” he adds.
The grant has been deliberately designed to complement existing government housing support programmes, including the Department of Human Settlements’ First Home Finance subsidy.
“Housing remains one of the most powerful tools for building wealth and driving economic participation. By making homeownership more accessible, we are helping more South Africans take meaningful steps towards financial security while contributing to stronger, more inclusive communities. This is how we create lasting impact, not only for individual families and communities, but for the economy as a whole,” he concludes.
- FNB HomeFirst Grant is a once-off capital reduction applied to a qualifying home loan.
- This is only available to qualifying first-time home buyers earning between R3 501 and R22 000 in gross monthly household income, and the maximum grant amount is up to R67 706.
- No separate grant application is required.
- The grant is applied directly to the FNB Home Loan as a capital reduction grant and does not need to be repaid.
- If your employer offers a housing scheme, you may also qualify for the FNB HomeFirst Grant
- You must have an affordability shortfall to be considered for the FNB HomeFirst Grant
- Customers also qualify for a 50% discount on bond registration attorney fees and FNB’s Home Rewards vouchers valued up to R7 000 which can be redeemed at select retail partners
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