President Zuma Promises That Housing Finance Help Is On The Way

Pretoria - President Jacob Zuma had good news for people who are struggling to secure finance for housing during his State of the Nation Address on Thursday.

The President announced that the R1 billion Guarantee Fund to promote access to loans that was announced in 2010, would begin operations in April.

From April, people earning between R3 500 and R 15 000 will be able to obtain a subsidy of up to R83 000 to enable them to obtain housing finance from an accredited bank.

In highlighting government's efforts to make housing available to all South Africans, the President told the story of a Grahamstown father of three, Mzukisi Mali.

Mali, a Fingo resident and public servant, emailed Zuma explaining how in 1994 his income was too high for him to get a RDP house but too low to get a bond.

Mali, his unemployed wife and their three children, still face the same problem. "When I apply for an RDP, I am told that I do not qualify and cannot get a bond because I am risky to the banks..." he told the President. Zuma encouraged Mali not to give up hope, saying the fund would help people like him.

"We are pleased to report that this fund will start its operations in April, managed by the National Housing Finance Corporation. The scheme will enable the banks to lend to people who are in a similar situation as Mr Mali," the President said.

- BuaNews