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Affordable Housing
Affordable Housing
"We're delighted to announce our entry into this fast growing market," said SA Home Loans Chief Executive Kevin Penwarden. "Now, lower income earners have access to the same innovative, consumer friendly approach to mortgage lending that's helped more than 150 000 individuals and families purchase their own homes."
Penwarden said affordable housing was 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.
Mindful of 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 percent loans to qualifying customers, with a 20 year term variable interest rate loan. It has also reduced its minimum property size to take into account smaller properties.