A way out of the rent trap? Govt's home loan initiative for first time buyers
John Maytham is joined by Azola Mayekiso, CEO of NHFC, an entity of the Department of Human Settlements.
- First Home Finance is an initiative of the National Housing Finance Corporation, an entity of the Department of Human Settlements
- The programme is open to those earning between R3 501 and R22 000 per month
For many South Africans, the dream of owning their own home seems just that...a dream.
Inflation, the rising cost of living, combined with recent interest rate hikes means that many of us simply can't imagine ever being able to afford getting a foot onto the property ladder.
But a new initiative by the Department of Human Settlements could be about to change that.
First Home Finance is a once-off housing subsidy that enables qualifying beneficiaries to buy or build their homes on an affordable basis.
It's an initiative of the National Housing Finance Corporation, an entity of the Department of Human Settlements.
It's a subsidy programme for qualifying South African citizens who are trying to finance their first home.Azola Mayekiso, CEO of NHFC, an entity of the Department of Human Settlements
The programme is available to those earning between R3 501 and R22 000 per month.
Mayekiso says individuals in these salary bands generally find it hard to qualify for housing finance because their income is regarded as too low for mortgage finance, but too high to qualify for the government ‘free-basic house’ subsidy scheme.
It was designed to facilitate access to mortgages.Azola Mayekiso, CEO of NHFC, an entity of the Department of Human Settlements
The subsidy amount is on a sliding scale, dependent on household income. The lower the income, the higher the subsidy.
Those at the bottom end of the earning scale get up to around R157, 000 as a once-off subsidy.Azola Mayekiso, CEO of NHFC, an entity of the Department of Human Settlements
Mayekiso says recipients might choose to use the subsidy to pay the legal fees connected with a house purchase, or even for a deposit.
Just last week, experts advised potential home buyers to save more towards their home loan deposit.
The deposit required for a home loan has increased by nearly 12%.
Due to the current economic environment, banks are tightening their loan processes and approvals as they have more reason to believe that borrowers might default.
For more information head to www.nhfc.co.za
Source : https://www.123rf.com/photo_109369040_mini-residential-craft-house-on-a-blue-background.html?vti=my7zh2r0qjs269uo67-1-15