Home Loan News:
The four major SA home loan providers have recently signed an agreement with Government that will promote housing in the lower income bracket. To date FNB, ABSA, Nedbank and Standard Bank have collectively invested about R6 billion in low cost housing, but this has mostly been targeted at the high-end of the targeted income bracket.
The housing minister, Lindiwe Sisulu, has expressed he concern over the fact the banks seem to be dragging their feet when it come to low cost housing finance.
“I am equally very concerned about the pace that we are making with the banks,” Sisulu said.
“The latest holdup has been the guarantees that the banks would like to have from government and we have not been able to give that guarantee because we do not think that we should be taking the burden of giving guarantees,” she added.
The signed agreement is expected to boost housing in the low income bracket, making home loans affordable and accessible to those earning an income of between R1,500 and R7,500 per month.
ABSA home loans were on of the first banks to offer a mortgage for the lower income earners and first time home buyers. Itâ€™s called MyHome and is a home loan package structured for home buyers who earn a single or joint monthly income of less than R7 500.
For more information about the ABSA MyHome product, complete this short form online and a consultant will contact you.