How it Works

If you’ve tried to apply for a conventional home loan recently, you might be used to hearing ‘you can’t afford it’. Well not with Housing Investment Partners. We look at our Clients the same way you look at a home – with great detail and care.

Why Housing Investment Partners (HiP) is the right answer for you?

If you’ve tried to apply for a conventional home loan recently, you might be used to hearing ‘you can’t afford it’. Well not with Housing Investment Partners (HiP). We look at our Clients the same way you look at a home – with great detail and care. We truly value that you are a loyal, hardworking employee; we care that you want to buy a quality grade home; and we understand that you need your monthly repayments to be both affordable and predictable. That’s why we take into account your future earnings potential, and not just your current salary, when considering your housing finance needs. In fact, we used this as a criteria when creating HiP Home Finance to allow you, the first-time buyer, and the opportunity to own your dream home today.

How is HiP different?

It’s not just our offering that is different, it’s our approach. We are not here to sell you a product, we’re here to partner with you in securing the most valuable asset you will ever own – your home. That’s why we help you finance the right home to suit your future earnings potential, and also supply you with all the information you will need to make an informed decision about your purchase.

Why was HiP Home Finance created in the first place?

HiP was formed as a means of providing a housing finance solution for the lower to middle income South Africans. As a member of the Old Mutual Group, HiP (in association with the National Housing Finance Corporation) developed an alternative housing finance instrument; one that enables people like you to buy your ideal home today by taking into account your future earnings potential. The result is that at HiP, we take pride in knowing that we help strengthen South Africa’s social infrastructure.

To qualify, you must be:

  • In full time employment (not self-employed)
  • A South African citizen
  • Aged 21 to 40 years
  • Earning between R3 500 to R30 000 per month (gross)
  • Cleared by the credit bureau

How do repayments work?

Predictability and affordability – this is the driving force behind HiP Home Finance. By linking your monthly repayment to your salary, and not to the volatility of an interest rate, you can always be certain of three things –

  1. That your payments will not be affected by unpredictable interest rate movements. While the interest rate changes may not affect the monthly repayments, they do however impact the home loan account which will be charged interest in line with movements in the prime rate.
  2. That your repayment is always a fixed percentage of your salary, making it easier for you to budget and plan ahead.
  3. Your repayments will increase annually by the same percentage as your annual salary increase.

Repayments are calculated as a percentage of your salary. This percentage will be fixed for the term of the agreement and will not be in excess of 30 % of your salary depending on the size of the home loan you apply for. The repayment will be collected monthly, in arrears, for the period of 20 years (240 months) by payroll deduction or debit order.

What if… life gets a little unpredictable?

Our experience has taught us that home buyers feel the pinch when life gets unpredictable. That’s why, with HiP, we have taken ‘unpredictable’ out of home financing and replaced it with ‘certainty’. That way you know exactly where you stand in your home financing agreement with HiP.

What is my overall contribution in all this?

Where conveyancing costs are not included in the purchase price you will need to pay the conveyancing costs associated with the registration of the property, but don’t worry, HiP will help negotiate a discount on your behalf.

  • You will need to pay a once-off initiation fee (this will not Exceed R5 700) and a monthly service fee of R57 (All costs are in line with the requirements of the National Credit Act.)
  • Home Owners Comprehensive (HOC) insurance is compulsory and is offered by Mutual and Federal. HOC protects you against damage to your property.
  • Life Cover for the main applicant is not required as this Business risk is insured and paid for by HiP to ensure that your loan is settled in the event of your untimely death.
  • Co-applicants will be responsible for taking out their own life cover and ceding it to HiP.

What are the benefits of HiP Home Finance?

  • Improved affordability
  • More home finance than what you would have qualified for through conventional offerings, both sooner and at a lower initial repayment.
  • Affordability is maintained throughout the term of the agreement.
  • Repayments are predictable and always a fixed percentage of your salary (maximum of 30 %) for the duration of the loan.
  • Access to finance for those who otherwise would not have qualified due to affordability.
  • Consideration of your future earnings stream.
  • Repayments are escalated annually – in line with your salary increase.
  • Repayments are not impacted by changes in the interest rate.
  • Home ownership – at least 5 years earlier than conventionally possible.