• Change of culture needed

    The right leadership will help SA shed its culture of violence, says Mandi Smallhorne.

  • 10 tips to find bargains

    Susan Erasmus gives advice on how bargain hunters can get the most bang for their buck.

  • Inside Labour

    Labour's bitter breaches need to be seen in historical context, says Terry Bell.

See More

Good news for lower-income home buyers

Apr 09 2013 11:11
Soweto-house, suburb, johannesburg

(File: Shutterstock)) (Shutterstock)

Related Articles

House price growth 'near turning point'

Demand for property on the rise

Home loans can pack a powerful punch

Buying your first home

Building your own house

Wealth is in the home

Cape Town - SA Home Loans, South Africa’s largest non-bank mortgage finance provider, on Tuesday announced its entry into the fast growing market for affordable housing, a move that spells good news for house hunters earning less than R18 000 per month.

SA Home Loans CEO Kevin Penwarden said affordable housing is a major segment of the South African housing market, with properties valued between R250 000 and R500 000 making up more than a quarter of all registered residential properties.

“Despite this, there remains a massive shortage of decent affordable housing.

"This demand has not been matched by a similar appetite in the provision of end-user finance by home loan providers, so we're confident that our entry improves not only the scope, but also the quality of choice available to lower income buyers.”

Taking into account the fact that many lower-income buyers find it extremely difficult to save up for the large deposits required for many mortgages, SA Home Loans is offering 100% loans to qualifying customers, with a 20-year term variable interest rate loan.

It has also reduced its minimum property size to take smaller properties into account.

Penwarden acknowledged that affordable housing carries a stigma of higher risk, making fund-raising a challenging exercise.

“Nevertheless, we have leveraged our fund raising expertise and managed to secure sufficient funding to make us a sizeable player in the affordable housing space.

"More importantly, our funding structure ensures that we will be in this market for the long term."

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

property  |  home loans


Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Add your comment
Comment 0 characters remaining

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:


Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.

Top 10 richest musicians of all time

Check out the gallery to find out who they are!


Luxury living

10 of the most expensive things that will leave your jaw hanging!
Seven of the most expensive children's toys ever made
5 millionaires turned murderers
The youngest billionaires in the world and how they made it

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

How do you see your boss? He/sheis:

Previous results · Suggest a vote