Billions more for homes

14 July 2016 - 09:51 By Bloomberg

SA's Government Employees Pension Fund has invested R10.5-billion in mortgage provider SA Home Loans to boost government workers' access to housing.The investment will be done by the Public Investment Corporation on behalf of the GEPF.Of the funds, R5-billion is earmarked for public servants, R2-billion for affordable housing for low-income earners, R2-billion to help SA Home Loans extend mortgages to other qualifying applicants and R1.5-billion for affordable housing developers."We can make good financial returns," said Dries de Wit, vice-chairman of the GEPF. Housing was key to economic development, stimulating demand for goods and services, he added.With unemployment at 27%, there have been increased protests over housing, access to finance and the slow pace of land reform since the end of apartheid in 1994.The GEPF's initiative will be available to its 1.2-million active members who qualify for credit and will also yield social returns with loans extended at competitive rates, the pension fund said.SA Home Loans, SA's fifth-largest mortgage provider, has built a website to poll government employees to gauge their housing needs and aspirations, said Guy Saville, a director of the company.The model could be extended, with more lenders becoming involved, he said. ..

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