BusinessDay - FNB calls for state-backed mortgage insurance fund

BusinessDay - FNB calls for state-backed mortgage insurance fund

FIRST National Bank (FNB), the second-largest provider of affordable housing loans, yesterday called for the creation of a state-backed mortgage insurance fund to stimulate banks to increase funding for people who do not own homes.
In addition, the government should fund the construction of infrastructure and help to secure suitable land to build houses, particularly for the gap market of people earning between R3500 and R10000 a month.
These comments were made by the CEO of FNB Housing Finance, Marius Marais, in response to a target set by Human Settlements Minister Tokyo Sexwale for banks to grant up to 600000 housing loans in the next three years for this market. The people in this category either earn too much to qualify for a housing subsidy or do not easily qualify for mortgage loans from banks.
Mr Sexwale told the recent 43rd annual conference of the South African Property Owners Association in Cape Town that banks should find a way to assist this market.
Mr Marais said that, in principle, he supported the minister’s objective to provide accommodation. But, in reality, it was easier said than done. He said there were "many issues" that inhibit the growth of affordable housing which were beyond the capability of financial institutions to solve. These issues needed to be addressed directly by the government, Mr Marais said.
Among these was the lack of a state -backed mortgage insurance fund that, among other objectives, would provide risk cover against defaulting clients, particularly by those who are retrenched. The government is considering creating such a fund, with seed capital of up to R1bn.
Mr Marais said that in addition to securing land, the government needs to fund the provision of infrastructure such as roads, water, electricity and sanitation.
Estimates from FNB show there are about 13-million households in SA. Of those, about 1-million fall in the high-income category, earning above R16000 per month.
"In the middle-income category we have around 3-million households earning between R3500 to R16000 per month.

Keywords - FIRST National Bank, FNB, affordable housing loans, affordable housing, loans, Marius Marais, Human Settlements Minister, Tokyo Sexwale, state -backed mortgage insurance fund, moladi, alternative

For more on moladi

What is the cost to 3D print a house?

Image
What is the cost to 3D print a house? What is the cost to 3D print a house or rather the "walls" of a house? What is the cost to 3D print the walls of a house? Whenever there is a post regarding 3D printing of homes, we are tagged by friends and colleagues to respond to the advantages of moladi vs 3D Printing. We therefore want to make it quite clear that this post is published purely to summarise our take on the topic and to have the ability to reference these questions and statements without having to repeat what we see as inherent issues associated with the 3D printing process of houses. All of the numbers used for 3D printing cost purposes are assumed, as these cost are not readily available for the purpose of this cost example. We would invite any 3D printing entity to help with the actual numbers to take any guesswork out of the cost estimation. First 3D printing post in 2017:  3D Printing a house or is it in reality - 3D Printing Walls?    - Link The development of m
Read more

LOW COST HOUSING design concept

Image
Low cost housing - Design concept Low cost housing - design concept Low cost housing - design concept moladi is a global leader innovator and developer of low cost housing as a production system - An assembly line principal. Read more on low cost housing design concept:   Fourth Industrial Revolution | Housing Construction - Link EmpowerPEOPLE to help themselves - Link How to reduce the cost of housing construction? - Link Project Trinidad - Link Gauteng Education Department - Link Western Cape Education Department - Link World Economic Forum – Future of Construction – World Bank - Link Tanzanian court buildings modernisation - Link Back to Basics Create entrepreneurs that PRODUCE Creating JOBS Producing FOOD Producing SHELTER Producing TAXES Circular Economy Video For more housing information visit moladi design concept - Link Searches relat
Read more

Emailing: allAfrica.com Angola President Dos Santos Confident About Sustainable Development (Page 1 of 1)

— The Angolan president, José Eduardo dos Santos, Monday here said that despite the consequences that Angola may suffer due to world economic crisis, it is intended to maintain the sustainable development model and the pace of strong economic growth. In his year-end message to the Nation, the Angolan Statesman referred that it also is desired to generate more jobs and the betterment of Angolan families and citizens living standards. He reminded that the world economy lives the greatest crisis since the "30s of the past century. The world strongest economies are facing slow-down and present evident signs of recession. It is noticed a strong fall of growth of economic activity, mainly in the United States of America and Europe, which is affecting the economies of African countries. The incomes of these countries have been reduced significantly, because the most developed economies are using less and less raw materials. The supply of these products has increased in the ma
Read more