NHFC Finance  
Finance partner 
Funding Programs 
General Criteria 
Who qualifies 
Where to get Finance 
Funding Programs 
Incremental Housing 
Home Ownership 
Register | Forgotten password?  

NHFC Finance :: Funding Programs :: Home Ownership

Home Ownership  

The Lenders and/or Retail Finance Intermediaries applying for NHFC Commercial loan facilities must meet the required qualification criteria and provide relevant supporting documents as prescribed by the NHFC Credit Committee; see the Finance Qualifying Criteria section for more details.


Loan description:

o   The aim of the Home Ownership is to increase the availability of finance for homeownership purposes to income groups of up to R15 000. Financial intermediaries should operate in areas where the target market is unable to obtain housing finance from financial institutions.

o   The intermediary can apply for Debt Funding in which an intermediary is granted a specific facility against which they can make draw-downs to fund end users for home ownership purposes

o   The Intermediary is expected to:

  Repay the loan according to terms set out in the loan agreement with the NHFC .

  Register bonds which will be ceded to the NHFC as security on the loan.

  Collect instalments and repaying the NHFC loan.

  Ensure that company is sustainable and profitable on an ongoing basis.

Target market:

-   established and accredited Micro-Finance Lenders / Retail Finance Intermediaries (RFI’s) and/or Banks

Loan size

-   The facility amount ranges between R20m and R200m depending on realistic projections, capacity to manage project, potential market

Loan Term

-   The repayment period is 20 years and the interest rate is linked to the prime. The intermediary must provide a 20% capital adequacy of the loan amount.

Qualifying criteria:

Qualification Criteria

The NHFC will assess the application to determine if such application meets its eligibility credit criteria. Lenders will be able to participate in this home ownership initiative provided that they comply with the following general criteria:-


-     They must subscribe to the aims of the NHFC in addressing the housing needs of the target market;

-     They must enjoy a sound reputation and be known for their integrity;

-     They will be required to submit audited financial statements for the last two years and a 5 year projections.

-     They need to possess appropriate technological capacity;

-     They should have appropriately trained staff in terms of the specific functions they will be required to perform;

-     All approved lenders will be required to conform to 20% capital adequacy requirements.

Granting Terms

-     The intermediary takes full responsibility for the loan made available to them;

-     The intermediary shall submit monthly management accounts i.e. income statement, balance sheet, cash flow statement and the debtors aging analysis report.

-     NHFC shall reserve the right to access and review the records of the company at all times.

How to Apply

In order to apply to participate, the intermediary must submit a formal letter together with a business plan requesting NHFC assistance.  The detailed business plan should cover the following:

  • Background history;
  • Mission and objectives of the intermediary;
  • Board and management structure, including key personnel for the intermediary;
  • Policies and systems development;
  • Credit criteria and product profiles;
  • Marketing plans and research studies (where relevant);
  • Projected financial statements: Income Statement, the Balance Sheet and the Cash flow including assumptions;
  • Copies of the audited reports for the past two or three years and management reports, where applicable; and
  • Memorandum and Articles of Association.


   Copyright © 2003 NHFC. Reproduction without permission is prohibited. All rights reserved.