Housing finance help on the way: Zuma

10 February 2012

President Jacob Zuma had good news for South Africans who are struggling to secure finance for housing during his State of the Nation address on Thursday.

Delivering his speech to Parliament in Cape Town, the President announced that the state’s R1-billion Guarantee Fund to promote access to home loans, 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 the 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, e-mailed 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,” Zuma said.

Source: BuaNews