The Homeloan Guarantee Company does exactly what its name says - it
offers guarantees to creditors for home loans, most specifically against the
property debts of lower income families. A Section 21, non-profit company, it
was started in 1989 to help solve the social development challenges of
increasing home ownership amongst disadvantaged communities in South Africa. By
offering lenders credit guarantees, lenders are more willing to grant housing
finance to customers who might otherwise be perceived by the traditional
financial sector as high risk clients.
Homeloan Guarantee Company Website
On the HLGC website you can read about their programmes and guarantees
The Homeloan Guarantee Company was specifically created to help
improve and better manage lower income people`s access to home loans. The social
and political history of South Africa has resulted in many citizens being left
out of the formal economy and its financial infrastructures. Millions have no
financial security and they often have very little knowledge or access to
information about financial services. This poses many challenges for potential
home owners in the developing economic sectors.
The company has thus developed a two-pronged approach to helping lower income
people own their own homes. In conjunction with its credit guarantees, it also
offers various training courses to educate and inform its clients about
financial literacy and the responsibilities of owning a home and paying a
mortgage. The training courses are available in all official languages and the
training methods are practical, interactive, participative, and tackle issues in
an understandable and clear manner.
The company works hand in hand with other social development agencies such as
the Department of Housing and the National Housing Finance Corporation. Its
success record speaks for itself - while the company was first financed with
loans and grants, it now has its own strong capital base and all the original
loans have been repaid.
The Homeloan Guarantee Company knows that responsible and accountable
mortgage lending is the best way towards sustainable and long-lasting home
- Guarantees on home loans secured by mortgages
- Guarantees on rentals and instalments for housing associations
- Guarantees on pension and provident funds
- Housing Consumer Education
Programme is run by the Department of Housing.
- Borrower Education
Educates home owners with housing finance knowledge and skills, including
owners` financial duties and obligations.
- Tenant Education
Educates tenants about their rights, duties and responsibilities, and
includes information on leasing agreements.
- Home Owner Education
Educates homes owners on the many aspects of being a responsible home owner.
Courses to train new HLGC course facilitators.
BEE AND CSI INFORMATION
The company does not have a specific CSI programme as its total core business
is in the area of social development, the same aims of corporate CSI projects.
41 Stanley Ave
PO Box 23
Tel: +27 (0) 11 - 726 3150
Fax: +27 (0) 11 - 726 7415