Entities applying for an NHFC loan facility must meet the required Qualifying Criteria and provide relevant supporting documents as prescribed by the NHFC Credit Committee.


Loan description:

  • A Medium to Long Term Loan offered to Private Property Practitioners who provide affordable rental accommodation, ideally, offering a perpetual rental tenure option.

Target market:

  • Private Property Practitioners (Landlords, Developers, etc.)

Loan size

  • Depends on realistic cash-flow requirements, market and financial projections, capacity to manage the project and on-boarding the potential market
  • Applications below R10 million in the Gauteng, KwaZulu -Natal and Eastern Cape regions are referred to an NHFC Subsidiary Company, the Trust for Urban Housing Finance (“TUHF’).
  • NHFC reviews applications above R10 million
  • Finance limited to 65 - 70% of the total development costs;
  • the Borrower must provide the balance as equity

Loan Term

  • Up to15 years (180 months)*
  • Capital and interest repayment moratorium of 6 to 18 months may be applicable
    *Though maximum term is a 15 year /180 months loan, normal practice is that the term is financially modelled to be fully paid within the 10 years / 120 months period

Qualifying criteria and finance conditions:

  • Borrowing entity:
    • A registered legal entity, a Pty Ltd or Ltd Company with either property development expertise and/or property management capacity. Close Corporations will not be considered.
  • End users/Tenants:
    • Persons with a monthly household income up to R15 000; this target market should in all instances not be less than 30% in the envisaged development; the rest can be above that income limit.
  • Property Tenure Types (Product):
    • Conversion from single units to family units
    • Conversion from an office block into a residential unit
    • Refurbishment or renovation of an existing building
    • Greenfield housing developments
  • Repayment of the loan:
    • Moratorium is granted on both capital and interest from the date of disbursement,/li>
    • During the remaining term after the moratorium period of the loan capital and interest will be repayable in arrears in monthly instalments
    • The Borrower may repay the whole or part of the principal facility, if, no less than 90 (ninety) days prior written, notice is given to the NHFC
    • The loan is a vanilla amortising loan (over the balance of the loan term)
  • Pricing Rate:
    • Pricing is linked to Prime Lending rate;
    • Pricing is also determined by the defined overall risk assessment on the borrower’s track and credit records and the merits of the development
    • 1 - 2% of the total facility, payable as once off facility/administration fee at first drawdown
  • Granting Terms / Disbursements:
    • Disbursements are linked to successful delivery of approved project milestones and progress reports


Back to top