SA Affordable Housing September / October 2018 // Issue: 72 | Page 9

NEWS
they need to earn R15 000 to qualify for a home loan from
banks, but these home loans also have high interest rates.
INVESTIGATING DIFFERENT FINANCE MODELS
“To create a people-focused housing strategy that helps staff
enter the property market as well as enter it sooner, we
started investigating the different subsidies and
opportunities in the market,” says Khumalo.
Our investigations focused on two opportunities in the
market. The first is a government housing subsidy called
FLISP (Finance Linked Individual Subsidy) by the National
Housing Finance Corporation (NHFC). This subsidy was
developed by the Department of Human Settlements to
enable sustainable and affordable first-time home-
ownership opportunities to those who earn between R3 501
and R15 000 a month.
The second opportunity is HiP (Housing Investment
Partners) financing model whose mandate is to allow for
early access into the property market through specially
restructured repayments. HiP is an independent financer that
is affiliated with the NHFC and Old Mutual. The selling point
of HiP housing is that the monthly repayments are calculated
according to your salary and what you can afford.
HiP financing is targeted at individuals who earn R30  000 a
month gross or less, or for households that have a total income
of R60 0
00 a month gross or less. HiP finances properties,
subject to qualifying criteria, to a maximum of R650 0
00.
One of the team members has been appointed as the
facilitator of the Great Commission, so people can book an
appointment and get more information about property
financing models that they could use to purchase a home, as
well as get assistance with the application processes for each
of the programmes.
The team at Aurecon is in the process of expanding
horizons in future by liaising with financial institutions on
issues such as interest rates and other large group benefits
that could be offered.
“Our goal is to work with banks to help get more of our
staff in the property market at younger ages, and we want to
help guide our peers through the process,” says Khumalo.
Aurecon employees attended a launch of the programme
at Aurecon’s Tshwane office and feedback from staff was
very positive.
“This is an excellent initiative and I think it’s going to help
a lot of people. I want to be a property owner in the future
and I’m going to book a session with the facilitator to find out
what my next steps should be,” says Chantell Fisher, Aurecon
project administrator.
“I’m currently renting but I want to own my own property.
I’ve been struggling to move from tenancy to ownership for a
while because I couldn’t qualify for a loan. This information
session has given me a better understanding of how I can
move forward,” says Rodney Louw, Aurecon records
management advisor.
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