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Empowering home ownership and building generational wealth

Empowering home ownership and building generational wealth
29-04-24 / Shelly Nxumalo

Empowering home ownership and building generational wealth

Johannesburg - Homeownership is more than just acquiring a roof over one's head; it represents the cornerstone of financial stability and generational wealth.

Recognising this, Standard Bank says it is reaffirming its commitment to making the dream of owning a home a reality for South Africans. The banking Group said it is the country’s largest home loan provider with a 33% market share and is extending its dominance in the sector to affordable housing, ensuring that this vulnerable sector has access to finance to acquire a home.

Affordable housing is vital in lowering the barriers to entry for first-time buyers and those within a specific price bracket. It's a gateway to the property market, offering opportunities to build wealth, access capital for entrepreneurship, or fund education.

Standard Bank said its affordable housing loan book stands at R32.63bn, with R2.58bn lent to 4 659 new homeowners last year alone, over 51% of whom are women.

As the largest affordable housing lender in South Africa, with 97 388 loans, Standard Bank said it goes beyond financing, providing comprehensive training sessions for first-time buyers, with 931 customers participating last year, to ensure they understand their obligations and how their loans function.

Toni Anderson, Standard Bank Head of Home Services says: “Many potential homeowners are unaware of the government assistance available to them. Standard Bank collaborates with the National Department of Human Settlements, the National Housing Finance Corporation, and provincial housing departments to facilitate access to the government's First Home Finance Programme. This initiative offers a once-off subsidy ranging from R38,911 to R169,265, aiding in reducing monthly instalments, contributing to deposits, and covering conveyancing and transfer fees.”

Standard Bank said it is dedicated to responsible lending, assessing each client's financial capability before granting loans, adding that its proactive engagement helps identify customers in need of assistance. For those facing financial challenges, we offer various rehabilitation options and encourage the use of our support channels, including the Standard Bank app and internet banking.

“Homeownership is a journey, and Standard Bank is here to guide you every step of the way. With our extensive experience, customer-focused services, and collaboration with government programs, we are setting the foundation for a prosperous future for all South Africans,” concludes Anderson.

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