PORT ELIZABETH – Relief is on the way for people who earn too much for an RDP house, but too little for a bank loan.
Government launched an improved “gap” housing scheme, partnering with Walmer Links Project to make things easier for qualifying citizens.
Homes in the Walmer Links Project will process a bond within a week with the help of a gap subsidy on their mortgage.
The bond repayments are R2 000 a month.
Human Settlements Minister Tokyo Sexwale has personally inspected the 430 homes — which range in price from R180,000 to the maximum R300,000 allowed by the scheme.
“We say to the big banks we will support you if things go wrong so it’s finance linked this one, the others are pure grants,” said Sexwale.
His department has budgeted more than R100 million for the subsidy scheme this year and is hoping to roll out more of these projects nationwide.
Article source: http://www.enca.com/south-africa/new-house-subsidy-launched