Wizard to expand origination to low and middle income housing market

Posted On Thursday, 25 June 2009 02:00 Published by eProp Commercial Property News
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Wizard Financial Services (a member of the ooba group) has concluded an origination agreement with the National Housing Finance Corporation to broaden its offering to all potential home owners.

Property-Housing-Residential

“We are very pleased to have finalised an origination relationship with the National Housing Finance Corporation (NHFC) which expands our origination offering to include the low to middle income housing market,” says Rhys Dyer, chief operating officer of the ooba group.

Traditionally the lower income groups have not had easy access to home financing because of their perceived risk and the banks’ focus on higher income groups.

With the escalation of the scale of housing delivery in this market, the low-income housing market is becoming viable and there are a range of innovative home finance products becoming available to the lower income groups.  We are therefore excited about our contribution towards assisting these home-buyers in sourcing home loan finance.

The Department of Housing established the NHFC as a Developmental Finance Institution with a principle mandate of broadening and deepening access to affordable housing finance for the low and middle income housing market.

Home Front Finance (HFF) is the retail Division of the NHFC and offers innovative end user finance solutions which include borrower education and financial counseling.

They provide 100% loans up to a maximum of R400k over a maximum term of 20 years for applicants earning up to R15k with proof of one year fixed employment. 

“In the current climate, where banks have significantly tightened their lending policies, the lower income market now has access to a deposit-free home loan,” points out Dyer. ”Whereas the higher income market are still required to raise a deposit which varies between 5% and 30% of the purchase price of the property that they are buying”

Mortgage originators such as Wizard Financial Services offer a free service to low income home buyers by handling all the complex paperwork and negotiating with the lenders to secure a 100% loan approval at the best home loan rate.

Last modified on Tuesday, 11 March 2014 19:05

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