FNB reports a rise in affordable housing lending

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First National Bank (FNB) is encouraging customers to use FLISP subsidy to improve home- ownership. The bank said the affordable housing income bracket earning between R3 501 and R26 100 a month increased from R32.2 billion in 2020 to R34.8 billion in 2021, as qualifying customers took advantage of low-interest rates.

FNB Retail CEO Raj Makanjee said their commitment to putting their customers in homes includes a deliberate effort to tailor solutions for those who often find it difficult to afford to buy a property. “As a result, our property lending solutions incorporate government subsidies such as the Finance Linked Individual Subsidy Program (FLISP) as well as our Collective Buying solution to help customers in qualifying income segments improve their affordability.”

Makanjee said while demand for affordable housing has remained strong over the years, “the past two years of historically low-interest rates have enabled many people to achieve their dream of homeownership”.

CEO of FNB Home Finance Lee Mhlongo said “FLISP is a government subsidy aimed at consumers earning between R3 501 and R22 000 a month. These consumers earn more than the qualifying income for social housing but not enough to afford a privately developed property.”

Mhlongo said as such, they actively encourage their customers to use FLISP to supplement their home purchase or reduce the balance on a home loan. “According to our data, the majority of our customers in the relevant income bracket may be eligible for FLISP”.

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