A series of economic happenings, which have caused a world-wide recession, has had an effect on the property sector globally, resultantly leaving many struggling to pay home loans. South African homeowners experiencing economic pressure have now been given some reprieve in the form of mortgage relief payouts, amounting to R1,400 each month. This relief has been initiated to help those facing financial distress due to home loan payments.
Who Qualifies for the Relief?
The eligibility for the 1,400-Rands mortgage relief depends mostly on the financial status of the applicant. Homeowners who:
- Lose their jobs;
- Have salary reductions; and/or
- Suffer from any other financial hardship
may be entitled to the aid. Generally, an applicant has to provide:
- Documents pertaining to the current mortgage theirs;
- Documentation showing reduced income or financial hardship; and
- Identification of the person applying.
Note that there could be slight variations in the application process depending on the bank or financial institution. As such, one should contact their mortgage provider so they can give all details on the requirements and the application process.
How Does the Relief Work?
Once approved, eligible homeowners could receive a direct R1,400 discount in their monthly mortgage payments. Such a reduction is temporary and would give the homeowner a time to cater to other financial matters during difficult situations.
The relief does not, therefore, amount to a waiver. When the period of relief ends, normal mortgage payments recommence, and homeowners are encouraged to plan accordingly for financial obligations upon the relief period’s cessation.
Application and Monitoring
To apply for mortgage relief, the homeowner should approach their mortgage provider. Most banks will have portals where an applicant could upload documentation and watch the progress of their applications. As such, relief schemes are often operating on a first-come, first-served basis; applicants are advised to seize the opportunity without delay.
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