or 1% -increased incentive) per e) R15,000 - R19,999 year for 5 years. Subsidy reducing by 1 % of each income f) R20,000 - + bracket and support is reduced by 1 year for each income bracket. R R R Overall impact of this a) R0 - R3,499 - 12% 75,000 50,000 16% 14% 12% intervention improves HH affordability due to the R R R reduction in amount of b) R3,500 - R6,999 75,525 47% 50,250 33,500 41% 38% 33% borrowings of the HH by the R R R Med Low Med FLISP amount paid to the c) R7,000 - R9,999 53,588 54% 37,500 25,000 51% 49% 45% FLISP mortgage bank. The impact R would be enhanced significantly d) R10,000 - R14,999 26,588 54% if linked to a debt rehabilitation e) R15,000 - R19,999 programme (see above) f) R20,000 - + R R R Assume impact improves by a) R0 - R3,499 - 12% 6,120 4,080 15% 13% 12% 10% (20% of Increased incentive) due to improved R R R access by HHs to mortgage b) R3,500 - R6,999 75,525 47% 12,240 8,160 40% 37% 33% loans. Assuming that some HHs R R R Med Med Med with affordability, but who have c) R7,000 - R9,999 53,588 54% 17,490 11,660 54% 50% 45% no savings use unsecured credit R to fund a deposit for a mortgage d) R10,000 - R14,999 26,588 54% Mortgage loan. Benefit is equal to an e) R15,000 - R19,999 Deposit annual saving of the extra interest payable on the Guarantee unsecured credit assuming the state pays the premium cost. f) R20,000 - + (unverified impact improvement as no current data)
or 1% -increased incentive) per year for 5 years. Subsidy reducing by 1 % of each income bracket and support is reduced by 1 year for each income bracket. e) R15,000 - R19,999 f) R20,000 - + FLISP a) R0 - R3,499 R - 12% R 75,000 R 50,000 16% 14% 12% Overall impact of this intervention improves HH affordability due to the reduction in amount of borrowings of the HH by the FLISP amount paid to the mortgage bank. The impact would be enhanced significantly if linked to a debt rehabilitation programme (see above) b) R3,500 - R6,999 R 75,525 47% R 50,250 R 33,500 41% 38% 33% c) R7,000 - R9,999 R 53,588 54% R 37,500 R 25,000 51% 49% 45% Med Low Med d) R10,000 - R14,999 R 26,588 54% e) R15,000 - R19,999 f) R20,000 - + Mortgage Deposit Guarantee a) R0 - R3,499 R - 12% R 6,120 R 4,080 15% 13% 12% Assume impact improves by 10% (20% of Increased incentive) due to improved access by HHs to mortgage loans. Assuming that some HHs with affordability, but who have no savings use unsecured credit to fund a deposit for a mortgage loan. Benefit is equal to an annual saving of the extra interest payable on the unsecured credit assuming the state pays the premium cost. (unverified impact improvement as no current data) b) R3,500 - R6,999 R 75,525 47% R 12,240 R 8,160 40% 37% 33% c) R7,000 - R9,999 R 53,588 54% R 17,490 R 11,660 54% 50% 45% Med Med Med d) R10,000 - R14,999 R 26,588 54% e) R15,000 - R19,999 f) R20,000 - +
FPU_Housing-finance-options-analysis_19-november-2012-2.docx