READER LETTER | Housing subsidy mitigates rate hikes

The high interest rate is a noose around the necks of the already struggling working-class people. It further deterred working-class citizens from realising their dreams of owning property.

The announcement of a 29% increase in First Home Finance subsidy by minister of human settlements Mmamoloko Kubayi will assist in curbing the runaway costs of affordability for first-time home buyers whose household income is between R3,501 and R22,000.

People with this kind of  income struggle to qualify for housing finance referred to as the gap market. First Home Finance is a once-off housing finance that enables qualifying beneficiaries to buy or build their first homes on affordable basis. 

The subsidy has been increased to the maximum of R169,265, this financial year. For those living in Gauteng, through its mega human settlements’ projects around the province, the Gauteng department of human settlements has made it possible for many people to access gap market houses.

These gap market houses are also provided by private developers. With everything increasing against the working class, a 29% increase to benefit people should be taken advantage of by those who qualify as it will go a long way towards offsetting the consequences of the high-interest rate.

Luzuko Pongoma, Naturena, Johannesbug