EXECUTIVE SUMMARY
OVERVIEW
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For many prospective home buyers, it is becoming increasingly difficult to gain a foothold on the housing ladder. Fewer and fewer borrowers are receiving mortgages, particularly in the low-middle income brackets, accounting for lesser new mortgages. A decade ago, these borrowers received more than 20% of new mortgages, according to National Credit Regulator data.
Accordingly, deteriorating eligibility reinforces patterns of inequality. This in turn undermines longer-term urban spatial integration efforts and equal access to wealth. Inadequate borrower education, financial literacy, affordability, and creditworthiness are flagged as the main reasons for high bank mortgage decline rates in the affordable segment.
The sandwich generation, middle-aged income earners caring for two generations of dependants, is particularly at risk, with income growth failing to keep pace with expenditure. Over the past decade, the price of new housing has risen more rapidly than household income, amid weak economic growth, so eroding affordability.
Above-inflation escalation in house prices has been driven by land inputs:
- Suitable vacant land and bulk infrastructure to service it, plus the necessary development rights from local government.
- Developers are finding it more difficult to contain these costs, citing municipal process delays and infrastructure expansion budget constraints, as towns and cities swell with the ranks of an urbanising population.
- Consequences include higher price points and slowing delivery, to the detriment of emerging households.
While creditworthiness is traditionally measured by credit scores compiled by credit bureaus, which correlate positively with total credit facility granted per individual, utilisation of credit facility and demonstrated ability to service obligations, are key indicators.
Excessive use of expensive, unsecured credit has contributed to credit impairments for half of South Africa’s credit-active population, reducing eligibility for long-term loans like mortgages.
HOW DO WE COUNTER?
Borrower Education and Financial Literacy are central to changing this outcome.
1. Credit scoring may be imperfect measures of creditworthiness, acting as a barrier to credit access for emerging households, while Borrower Education and Financial Literacy provide a road map to sustainable financial management.
2. Individuals who are not highly credit-active, or who choose not to use their credit facilities, may – perversely – have lower scores than those who are highly indebted.
3. Earlier this year, Transunion revealed that use of alternative and trended data identified 3 million “thin file” consumers who were potentially creditworthy: an increase of 10% in the credit-active population.
4. Tightening consumer credit and banking regulation (National Credit Act and Basel III, respectively), property losses during the financial crisis, and persistently sluggish economic conditions have dampened mortgage lender appetite.
Can emerging home owners make home ownership and property retention a reality?
Yes! With strategic partnerships between the Employer and private "expert" service providers (like our team), the roll out of our housing projects and property retention mechanisms, with acquisitions backed by mortgages, all make home ownership possible!
During the 2007 Financial Year, a report on the indebtedness of public servants was issued by The Public Service Commission to alert well-being divisions within the sector to embark on an EAP (Employee Assistance Programme) with a key focus on a legislative framework to support employees with debt management. However, the latter is not a sustainable solution to provide financial freedom
As expert ex-bankers, Group Scheme and Property Practitioners, we developed a cutting-edge turnkey solution to offer a National Housing Group Scheme to the Public Sector to offer the following services:
Employees who need to sell their homes:
1. We will market and sell your homes anywhere in the country where we engage with a network of credible property practitioners to assist.
2. Our impeccable credit-score and pre-assessment gateway will help deliver credible buyers.
3. We offer a turnkey process, such as:
3.1 Pre-assess the buyer
3.2 Submit their home loan to a bank of their choice
3.3 Appoint a bank panel conveyancer that offers discounted fees
3.4 Assist you with your succession housing plans to either rent or purchase a suitable property.
Employees who need to purchase homes:
4. Offer our "scouting services" to help find a suitable house, including one within new developments of choice.
5. Assist the middle-market with government subsidies to acquire the FHF (First-Home-Finance) government subsidised property, supported by a hybrid loan (partly bank loan and partly subsidy).
6. Offer the same services in point 3 above.
Prospective employee-home-buyers in financial distress
7. Will assist with our Credit Repair & Rehabilitation Program, which is not "Debt Relief"! But an educational and debt settlement program with services supported by our Legal Panel.
8. Once the prospective buyer has been rehabilitated, we will follow the "buyer" steps above.
Employee Home Owners Facing Foreclosure
As trusted ex-bankers with open-door policy at the all the banks, we will assist above employees to make suitable arrangements with the banks to settle arrears and retain their homes. These employees will also participate in the rehabilitation program.
MEET OUR DYNAMIC TEAM!
Rosemarie Lodewick - Program Director
Program specialist skill sets
- HR Well-Being Specialist (ABSA 1985 -1989)
- Trainer and Developer (ABSA - trained Real Estate Agents on the "Property Multi-Listing" Software Product, 1989-1992)
- Property and Home Loan Specialist (Nedbank, 1995 -2000)
- Group Schemes Specialist to Corporate SA (Nedbank, 2000 - 2003
- Business Owner, 2003 to date, specialising in:
- Property Practitioning/Consulting /Marketing & Sales
- Bond Origination (pre-assessments, credit repair & rehabilitation/home loan submissions)
OUR HOME LOAN PRE-ASSESSMENT AND BANKS' GATEWAY CENTRE
Overview
This brand is directly contracted to all the commercial banks, including SAHL (S A Home Loans), and Old Mutual’s HIP (Home Investment Partnership) platforms to offer clients an opportunity to select their bank of choice. The company was established 20+ years ago, and perform impeccable services on national bases.
Value Proposition
- Expedite all Pre-Assessments at the banks' “Home Loan Gateway”
- Obtain consent from applicants to perform ITC Reports
- Collate all supporting documents
- Submit home loan to bank of applicant's choice
OUR LEGAL PANEL
We partnered with a dedicated Legal Panel that is reputable with specialised skills to deal with clients in Financial Distress.
Value Proposition
- Obtain POA (Power of Attorney) to respresent clients at the creditors.
- Obtain discounted settlement arrears/debt
- N.B. This is not a "Debt Review" process!
- Expedite the conveyancing once a property is acquired by the client and the home loan is approved
JOIN US TO HELP YOU OBTAIN YOUR HUMAN-RIGHT TO OWN AND RETAIN YOUR "HOME"
For a presentation booking, Well-being divisions to please email: rosemarie@multinetmortgages.co.za
Or WhatsApp Rosemarie @ 0846852513