R35,6 billion spent on affordable housing

Xolile Bhengu

Xolile Bhengu

The national department of housing and the Banking Association have spent R35,6billion to create access to affordable housing.

The body for banks and government agreed, under the Financial Services Charter in 2004, to spend R42billion by the end of December this year to create access to funds for households earning between R1500 to R7500.

To date 629000 households have benefited from the funds, and the household income was extended to R10000.

The charter guidelines define an affordable housing loan as ranging from R5000 to R300000.

Pierre Venter of the Banking Association said the loans were broken into mortgage or bond loans which amounted to 178000 and 451000 home improvements loans issued.

Venter said the achievement was significant, and they hoped to have at least R32billion in outstanding loans by the end of this year.

He said economic factors such as the 4percent interest hikes in two years, the introduction of the National Credit Act in June last year, and property developers' focus on the middle and high end market, and the 2010 Soccer World Cup had made financing the affordable housing market difficult.