Buying an investment property in South Africa can feel out of reach when you have to cover the deposit, bond repayments, insurance and maintenance on your own. FNB offers a Collective Buying home loan that allows up to 12 people to buy property together, while its other home-loan and structured-finance options serve different property needs.

The idea is attracting attention: a report published by Business Day on 5 October 2026 said FNB had advanced more than R1 billion through its Collective Buying product since launch. But buying property with other people comes with financial and legal responsibilities. Here is how the options work, what costs to budget for and what to check before applying.

FNB Property Investment and Home Loan: Quick Details

Detail	Information
Bank	First National Bank (FNB)
Main product covered	FNB Collective Buying home loan
Number of applicants	Up to 12, subject to product rules
Property purpose	A home or qualifying investment property
How to apply	Through the FNB Banking App or by contacting FNB
Interest rate	Individual rate depends on the application and bank assessment
Approval	Subject to affordability, credit assessment and FNB’s terms
Official website	FNB Home Loans

What Is FNB Collective Buying?

FNB Collective Buying is a home-loan solution that allows a group of people to purchase a property together. Applicants may include friends, family members or business partners who want to share the financial responsibility of owning a property.

According to FNB, the arrangement may help applicants combine their financial resources, qualify for a larger loan amount, contribute a bigger deposit and share certain maintenance and running costs.

It can be used by people purchasing a home to live in or by qualifying buyers looking to invest in property. However, eligibility and approval depend on the bank’s assessment and product rules.

Read the official product information here: FNB Collective Buying.

Can You Buy an Investment Property With Friends or Family?

Yes, FNB states that its Collective Buying product can be used by qualifying applicants who want to buy or invest in property together. This can make a property purchase more manageable because the group can pool resources rather than relying on one person’s income and savings alone.

Before proceeding, however, everyone involved should understand the financial and legal arrangements.

For example, a group of four people might agree to contribute different amounts towards the deposit and monthly repayments. Their agreement should clearly record each person’s contribution, ownership share, responsibilities and what happens if one person wants to sell or can no longer afford their share.

Do not rely on a verbal agreement. Ask an independent property attorney to help prepare a written co-ownership agreement before committing to the purchase.

How Does the FNB Collective Buying Home Loan Work?

The process generally involves the following steps:

1. Choose the applicants. Discuss the purchase with the people who will share ownership and responsibility for the loan.
2. Work out the budget. Calculate the deposit, expected repayments, legal costs, insurance, rates and maintenance.
3. Review everyone’s finances. Each applicant should understand their income, debts, credit record and ability to contribute.
4. Contact FNB. Start through nav» Home on the FNB Banking App or contact the bank for guidance on the application.
5. Submit the required information. FNB will assess the applicants and the proposed property in line with its lending criteria.
6. Review the loan terms. Before signing, make sure everyone understands the repayment structure, ownership arrangements and legal responsibilities.
7. Finalise the purchase. If the loan is approved, follow the bank’s and conveyancing attorney’s instructions to complete the transaction.

FNB’s product information says applicants can arrange repayments through options that include a single debit order or a split-bill repayment function, subject to the applicable rules. Confirm the options available for your application directly with the bank.

Important: Who Is Responsible if One Person Stops Paying?

This is one of the most important questions to settle before buying property together.

FNB’s Collective Buying FAQ states that applicants remain jointly and severally liable for the home loan. This means the bank may hold the applicants responsible for the outstanding debt even if one person fails to pay their agreed share.

For example, if one member of a group loses their job and stops contributing, the remaining applicants could still face pressure to keep the bond up to date.

A written agreement can help the group manage disputes, but it does not automatically change the bank’s rights under the loan agreement. Obtain independent legal advice before signing.

Read FNB’s Collective Buying information and FAQs.

Other FNB Property Finance Options

Collective Buying is not the only product worth investigating. The right option depends on whether you want to buy a residential property, access funds from an existing bond or finance a larger property portfolio.

1. Standard FNB Home Loan

FNB’s standard home loan is designed to finance the purchase of an existing residential property. The bank lists several costs that buyers should consider, including the deposit where required, bond registration and transfer costs, transfer duty where applicable, monthly repayments, insurance and municipal rates.

Explore the FNB Home Loan page for current product information and application guidance.

2. FNB Structured Loan

FNB describes its Structured Loan as secured financing for larger property acquisitions and investments. Its product information refers to a facility that can bring together property and other assets, subject to the bank’s assessment and terms.

This is a different type of finance from an ordinary residential home loan. Investors should contact FNB to establish whether the product suits their property portfolio, assets and borrowing requirements.

Official details: FNB Structured Loans and Financing.

3. Further Lending and Readvance

Existing FNB home-loan customers may be able to explore further lending or readvance options, subject to eligibility and credit assessment. These options are not guaranteed sources of investment capital.

Additional borrowing increases debt and may affect repayments, interest costs and the overall financial risk of owning property. Check the terms carefully before using funds for an investment.

See the options on the official FNB Home Loan page.

What Does It Cost to Buy an Investment Property?

The purchase price is only one part of the budget. Before applying for a mortgage, allow for the following costs:

• Deposit: The amount required depends on the transaction and the bank’s lending decision.
• Bond registration fees: Legal fees and related costs may apply when registering the mortgage bond.
• Transfer costs and transfer duty: These depend on the transaction and the applicable tax rules.
• Monthly bond repayments: These depend on the loan amount, interest rate and repayment term.
• Insurance: FNB requires suitable home-owners cover for properties financed under its home-loan agreement. Other insurance requirements may also apply.
• Municipal rates and services: These continue after the purchase.
• Maintenance and repairs: Investors should set aside money for unexpected problems and routine upkeep.
• Vacancy periods: A rental property may stand empty, leaving the owner responsible for costs without rental income.
• Property management and compliance: Depending on the property, you may need to budget for management, inspections or other services.

Check the bank’s current pricing and ask the conveyancing attorney for a cost estimate before making an offer.

How to Check Whether You Can Afford the Bond

Do not decide affordability based only on the rent you hope to receive. Rental income can change, tenants may pay late and interest rates can move.

Before buying, prepare a realistic monthly budget that includes the expected bond repayment, rates, insurance, maintenance and other property expenses. Test whether you could still meet the payments if the property remained vacant for a period or an unexpected repair was needed.

You can start with the FNB Home Loan Affordability Calculator. The result is only an estimate; it is not a loan approval or a guarantee of the amount the bank will lend.

Documents You May Need

The bank will confirm the documents required for your particular application. Depending on the applicants and transaction, you may be asked for:

• South African identity documents or other accepted identification.
• Proof of income and employment.
• Bank statements or other financial information.
• Details of existing debts and financial commitments.
• Proof of residence.
• An offer to purchase, where applicable.
• Financial statements or supporting records for self-employed applicants.
• Additional information requested by FNB for a joint application or investment property.

Make sure all applicants provide accurate information. Do not pay an unofficial agent who promises guaranteed mortgage approval.

Does Property Investment Guarantee a Profit?

No. Property can build long-term wealth, but it is not a guaranteed investment.

A property may increase in value, generate rental income or both. However, returns can be reduced by interest costs, repairs, insurance, taxes, vacancies, legal expenses and periods when rental income falls short of the monthly costs.

Before buying, compare the expected rental income with the full cost of owning the property. Consider how long you plan to hold it and whether you could afford the repayments if circumstances change.

If several people are investing together, agree in writing how profits, expenses, losses and a future sale will be handled.

Questions to Ask FNB Before Applying

Before committing to a mortgage or property investment, ask the bank:

1. Which home-loan or property-finance product fits the intended purchase?
2. What interest rate and repayment term could apply to the application?
3. What deposit and once-off costs should the group budget for?
4. What are the repayment responsibilities of each applicant?
5. What happens if an applicant wants to leave the arrangement?
6. Which insurance policies are required?
7. What documents and credit checks will be needed?
8. Are there product fees, conditions or restrictions that could affect the investment?

Get the answers in writing where possible and have an independent attorney review the co-ownership arrangements.

Frequently Asked Questions

Can 12 people apply for an FNB home loan together?

FNB’s Collective Buying product allows up to 12 people to own a property together, subject to its product rules. FNB notes that the number who can complete an application through the app may differ from the maximum supported, so contact the bank if your group has more applicants.

Can the property be bought as an investment?

FNB says Collective Buying can be used by qualifying applicants who want to buy or invest in property. The bank must still assess the application and the intended transaction.

Will applying together guarantee a larger bond?

No. Combining applicants may help the group present its financial position, but the bank will assess affordability, creditworthiness and other lending criteria. Approval and the amount offered are not guaranteed.

Does FNB publish one interest rate for every home-loan applicant?

No single advertised rate should be assumed to apply to every applicant. The rate offered may depend on the application and the bank’s assessment. Check FNB’s current rates and ask for a quote based on your circumstances.

What happens if one co-owner cannot pay?

FNB’s Collective Buying FAQ says all applicants remain jointly and severally liable for the loan. The other applicants could therefore face liability for the debt if one member fails to contribute. Seek legal advice before signing.

Where can I apply?

Start with FNB’s official Collective Buying page or Home Loan page. Use official bank channels and confirm the current requirements directly with FNB.

Final Advice for Property Investors

FNB’s Collective Buying option may help suitable groups enter the property market, while standard home loans and structured finance serve different borrowing needs. The right choice depends on your finances, the property, the planned use and the risks you can afford.

Before applying, compare the total cost of ownership with the realistic rental income or other expected benefits. If you are buying with friends, family or business partners, obtain independent legal advice and agree on ownership, repayments and exit arrangements before signing.

Disclaimer: This article is for general information only and is not financial, tax or legal advice. FNB’s products, rates, fees and eligibility rules may change. Confirm current terms with FNB and seek independent professional advice before making an investment decision.