http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.10Change: 0.08
R/$ = 10.50Change: 0.03
Au 1305.15 $/ozChange: 6.27
Pt 1477.00 $/ozChange: 3.50
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jul 25, 2003

Housing forum debates low-cost funding options

Back
Johannesburg|FinMark Trust|Housing|National Housing Finance Corporation|NHFC Samson Moraba|South African Home Loans|Creative Solutions|Development Finance Institution|Finance|Finance Practitioners|Finance Sector|Mortgage Product|Product|Products|Sustainable Low-income Housing Finance Models|David Porteous|Simon Stockley
|Housing||Products||
johannesburg|finmark-trust|housing|national-housing-finance-corporation|nhfc-samson-moraba|south-african-home-loans|creative-solutions|development-finance-institution|finance|finance-practitioners|finance-sector|mortgage-product|product|products|sustainable-low-income-housing-finance-models|david-porteous|simon-stockley
© Reuse this The first Housing Finance Forum was held yesterday, in Johannesburg, under the auspices of the National Housing Finance Corporation (NHFC), a development finance institution responsible for facilitating access to housing finance for low- and moderate-income communities.

CEO of the NHFC Samson Moraba said the establishment of the Housing Finance Forum stemmed from a need for vibrant debate among housing finance practitioners to realise models that are tailored to suit the South African low-income housing market.

“The challenge for those in the housing finance sector is to adopt global best practice in our country’s emerging market, while taking cognisance of our unique local features.

“Through open discussion and debate, we will be able to attain creative solutions for sustainable low-income housing finance models,” Moraba explained.

The forum deliberated whether the mortgage instrument was relevant to low-cost housing.

Simon Stockley, CEO of South African Home Loans, argued that the housing finance sector should not focus on the mortgage instrument in itself, but on the funding mechanisms underpinning it.

“The mortgage product has relevance only in relation to mature, as opposed to emerging, markets,” said Stockley.

He explained that a mortgage bond is essentially a highly-sophisticated product, which also comes at relatively high costs.

“I believe that the lower-income market requires a slightly more innovative mechanism, which is currently unavailable in the South African market, because there is lack of competition in the mortgage market,” he added.

He pointed out that, currently, competition between mortgage products is restricted, as four big banks are monopolising the market.

After researching alternative funding mechanisms, Stockley and an association of venture capitalists established South African Homeloans, the first discount home loan specialist in the country, which uses the securitisation model to raise capital.

“We assemble parts of mortgage loans and sell off income from mortgage loans directly into the capital market. The securitisation model has been highly successful for us, since we have managed to grow our market share from zero to 7% per month, within a space of four years,” he explained.

David Porteous, head of Finmark Trust, a nongovernmental organisation aimed at making financial markets work for the poor through the sustainable expansion of access to financial services, including housing finance, said there has been a swing from the mortgage to the nonmortgage model, and added that there should be a middle ground between the two models to serve the needs of the low-income market.

“There is always room for nonmortgage products, but mortgage has relevance because it is the only way to answer the affordability question in a sustainable fashion,” he said.
Edited by: Martin Czernowalow
© Reuse this Comment Guidelines
 
 
 
 
 
 
 
 
 
Latest News
The head of economics and trade at the Delegation of the European Union (EU) in Pretoria has acknowledged South Africa’s trade negotiators won important concessions in the long-running Economic Partnership Agreement (EPA) trade talks. But he says it was South...
Responding in writing to a recent Parliamentary question by the Democratic Alliance, Transport Minister Dipuo Peters has provided an update for each of the country’s 13 bus-rapid transport (BRT) systems, noting that each network is at a different stage of...
The South African Real Estate Investment Trust (SA Reit) Association has called on the Competition Commission to intervene in undesirable exclusivity clauses in retail leases that were allowing retailers to stifle market share. The association’s members, which...
More
 
 
Recent Research Reports
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
Real Economy Insight: Steel 2014 (PDF Report)
This four-page brief covers key developments in the steel industry over the past 12 months. It provides an overview of the global and South African steel and stainless steel markets, South Africa’s major steel producers and events that have shaped these markets.
 
 
 
 
 
This Week's Magazine
Multinational semiconductor chipmaker corporation Intel announced its national campaign to further acquire partners to drive its She Will Connect programme, an initiative that aims to expand digital literacy skills to young women in developing countries, further into...
South Africa's MeerKAT radio telescope array programme should get back on schedule within a few months. This assurance has been given by SKA South Africa (SKA SA) associate director: science and technology Prof Justin Jonas. Early last month, Science and Technology...
The Passenger Rail Agency of South Africa’s (PRASA’s) Metrorail service will remain a subsidised service following its current multibillion-rand rolling stock, station, depot and signalling upgrade programme. PRASA group CEO Lucky Montana has allayed fears that...
GARYN RAPSON Contaminated Land Provisions in the National Environmental Management: Waste Act No 59 of 2008 will open the door for court battles to determine who will be held liable for the remediation
The uncertainties around the remediation of affected areas as addressed in the Contaminated Land Provisions in the National Environmental Management: Waste Act No 59 of 2008 will possibly spark litigation and disputes between landowners and businesses, contractors...
South Africa is currently the largest component of the African Development Bank’s (AfDB’s) active portfolio in Southern Africa, comprising 62.5% of the bank’s $7.9-billion exposure to the 12-country region – the second largest beneficiary is Mauritius, which...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks