Govt To Restructure The Mortgage Finance System

The Government says it is re-examining the mortgage finance system so that those in the informal sector are able to access housing finance.

A mortgage is a legal agreement by which a bank or other creditor lends money at interest in exchange for taking title of the debtor’s property, with the condition that the conveyance of title becomes void upon the payment of the debt.

The mortgage finance system makes it difficult for vulnerable groups who are in the informal sector to access housing.

National Housing and Social Amenities Minister Daniel Garwe on Friday said the Government will re-examine the mortgage finance system.

Garwe was presiding over the launch at BancABC Hopelyn Housing Estate next to Bulawayo’s Mahatshula suburb where he unveiled close to 90 fully serviced stands. He said:

As we move towards our target of 220 000 houses by 2025, we are amending laws such that even those who are not formally employed can access mortgage finance, this is important because most people here are self-employed and have for years been excluded from mortgage finance to access housing loans.

He said terms such as the requirement for pay slips should be reviewed as the majority of Zimbabweans are in the informal sector.

BancABC is one of several banks in Zimbabwe partnering with Shelter Afrique for housing development projects.

BancABC recently concluded an US$11 million housing development deal with Shelter Afrique to provide low to middle-income housing infrastructure.

More: The Sunday News

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