How low can you go?

As part of the Charter process, the financial sector has committed to providing R42 billion of housing finance to the low income market, defined as those with a monthly household income of between R1 500 and R7 500, by the end of 2008. Since the publication of the Financial Sector Charter ("FSC") in 2003, three of the country's four largest retail banks have begun actively marketing mortgage products aimed at the FSC target market. While this is a positive development, it is important to assess to what extent these products meaningfully enhance access to housing finance in the low income market.