New bank to fund South African GAP housing

The South African Government has established a bank to provide housing loans to people in the “GAP market”.

The Human Settlements Development Bank was launched by the department in Cape Town on Friday, 19 May 2017.

It will provide housing finance to people earning too much to qualify for RDP housing but not enough to secure mortgage bonds from retails banks.

Human settlements minister Lindiwe Sisulu announced the launch of the bank – which consolidated three development finance institutions from her department – during her budget debate.

The bank will only start to function once the Human Settlements Development Bank Bill‚ which is currently in its fifth draft‚ is passed by Parliament.

The department hopes that this would be done by the end of September this year.

Sisulu said: “The strategic focus of the bank will be to facilitate the increased provision of finance across the human settlements value chain.”

SA Home Developments director Wesley Beneke believes this is an amazing initiatives for future homeowners in South Africa.

“When we launched SA Home Developments last year, we realised during our practice that it’s very difficult for South Africans, especially young South Africans, to qualify for home loans. This new initiative from government will make the process so much easier… helping more citizens gain access to affordable funding,” he explains.

“We are very excited around this new development as we have a few GAP housing projects in the pipeline. The Human Settlements Development Bank will assist in helping us create more homes for more South Africans.”


Source: Times Live

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