Human Settlements Minister Mmamoloko Kubayi said that the department was just steps away from launching its bank, with legislative processes the only hurdle in the way of realising the goal.
The bank will replace the National Housing Finance Corporation, which currently facilitates Flisp, a housing subsidy programme for first-time homebuyers.
However, with complaints around the effectiveness of the programme in its current form, the department moved to establish the bank which will function similarly to any institution issuing housing financing.
Minister Kubayi said that the South African Reserve Bank had approved the application for the Human Settlements Bank, with the only regulatory processes left being legislative.
“We are currently in the process of going to Cabinet, and also to Parliament. Once Parliament and Cabinet approve, we will start the process,” she said.
The minister said that this year alone, there was a budget of R478 million for Flisp beneficiaries while admitting that the programme was underutilised.
“And we are looking at ensuring that people get to know more about it, but it’s easy to apply, and the turnaround time of approval because that’s one of the complaints from people who have applied, saying that it takes long for them to receive responses,” she said.
Flisp was developed for first-time homeowners earning between R3,500 and R22,000 per month.
This as people in this bracket find it hard to qualify for housing finance from traditional banks with their incomes considered too low and too high to qualify for the government’s free housing subsidy scheme.
In other news – Somizi Mhlongo over Mohale
Former Idols SA judge Somizi Mhlongo is once again giving us vacation goals during a recent trip to Cape Town and it wasn’t just the views and the yacht that caught our attention but a new best friend.
The former Idols SA judge was seen living his best life in Camps Bay, all smiles with a man named Ndo Maleho. “Die kaap is lekker. Fun times with my ride @ndomaleho,” Somizi wrote. Learn More