Western Cape Government and Nedbank partner for mortgage relief

The Western Cape Government has entered into a partnership with Nedbank to provide financial relief to homeowners struggling with mortgage repayments. The initiative aims to assist households already in the property market who are experiencing financial distress by using existing housing subsidies to reduce or settle outstanding home loans.

Nedbank has identified 278 households facing financial pressure. To date, 48 applications have been approved, totaling approximately R6.46 million. The expanded programme is expected to affect 158 bonds and facilitate the release of title deeds for properties valued at roughly R17.32 million.

The Western Cape Department of Infrastructure assesses applicants based on the requirements of the Individual Housing Subsidy Programme and First Home Finance (formerly FLISP). If approved, the subsidy is applied directly to the bond. For some, this reduces the debt; for others, it settles the balance entirely, allowing the homeowner to receive their original title deed.

This partnership builds on a similar existing model between the provincial government and First National Bank, which has already resulted in the cancellation of over 200 bonds.