Home loan plan targets civil service
The government's mortgage default insurance (MDI) scheme, aimed at helping lower-middle-income earners to own their own homes, would start operating in the new financial year, it emerged yesterday.
The R1 billion scheme would initially apply to police officers, nurses and teachers, Deputy Human Settlements Minister Zou Kota-Fredericks said in Parliament.
"We have not quantified in terms of numbers, but we know exactly what category (of people) we are talking of - police, nurses and teachers," she said.
"Professionals who (earn) between R3 500 and R15 000 (a month) - that is the area we are focusing on at the moment."
The MDI would allow people who earn between these amounts to "access a subsidy from the provinces of up to R83 000", enabling them to secure housing finance of up to R300 000 from an accredited bank. It would "mitigate the default risk" on mortgage loan repayments to the banks, Kota-Fredericks said.