Preamble

Loan finance for low income earners to access affordable housing via mortgages, unsecured loans, personal loans secured by pension or provident funds or via wholesale loans to intermediaries who provide end-user loans to low income earners is a national imperative. It is also imperative to stimulate the development of residential units in the State Housing subsidised or "gap" markets by including origination of financing to developers of units that serve the "gap" market.

Definition

Affordable Housing origination means the origination of housing finance loans for the target market (currently individuals with a gross monthly income of R15,800 to be adjusted annually). In addition, the financing of residential developments falling within the State housing subsidised or the 'gap' market (currently individuals earning gross monthly income of R10,800 to be adjusted annually), will form part of this pillar.

Annual adjustments are to be based on an agreed formula.

Target Market

The target market is individuals earning no more than gross monthly income of R15,800 (to be adjusted annually) and/or housing developers that are producing housing units for individuals earning no more than gross monthly income of R10,800  (to be adjusted annually). Financing for these developers is included in order to facilitate the development of units to address the shortage of housing stock for the subsidised or 'gap' market individuals in South Africa.

Products

The origination of the following loan products during the measurement period will count under origination in the Access scorecard:

Measurement

Organisations will be measured against individual targets based on the loan amounts achieved during the measurement period.

Targets

Targets will be agreed based on the origination of loans required to deliver on the Targeted Investment targets as agreed per organisation.