Housing Investment partners welcome boost of R1, 125 billion in housing subsidy
The Housing Investment Partners (HiP) will tomorrow welcome and celebrate its R1.125 billion housing funding from National Housing Finance Corporation (NHFC), Old Mutual and Future Growth in Rivonia.
This is a significant milestone which will strengthen Public Private Partnership between government department of Human Settlements, National Housing Finance Corporation, Future Growth and Old Mutual.
This Public Private Partnership boasts low interest rate of 4.5% as compared to current 9.25%. The monthly payments are predictable and linked to salary increase. If there is no salary increase there is no instalment increase. This funding will protect the customers against interest rate volatility.
The monthly repayments are linked to the borrower's salary and escalate annually in line with salary increases. This allows creditworthy individuals to access the housing market and to start accumulating wealth through ownership.
HiP provides home loans to lower and middle income households at a point when they cannot get funding from the banks. Those who qualify for HiP must earn a monthly salary of between R3 500 and R30 000 for house prices ranging from R200 000 to R650 000.
Issued by: Gauteng Human Settlements