Housing finance goes beyond merely lending money; it is fundamentally about building the middle class.
South Africa requires housing finance models that balance prudent risk management with the national imperative of expanding economic inclusion.
Risk-based pricing has an important place in responsible lending, but perhaps it should also recognise positive financial behaviour, not only historical financial setbacks, wrote the RB Property Group in their newsletter on Thursday.
The property investment company says if the local financial sector can help more South Africans become successful homeowners, it will grow more than the property market.
“We will grow the middle class. We will expand the tax base. We will stimulate investment. And ultimately, we will build a stronger and more inclusive South African economy,” it says.
