Good News for Thousands of Council Home-Owners

Most mortgage debtors live in Athlone, Belhar, Bonteheuwel, Elsies River, Grassy Park, Hanover Park, Helderberg, Mitchells Plain, Ocean View, Pelican Park, Retreat, Steenberg, Strand and Tygerberg.

Loan amounts range from an average of R16 500 to R32 700.

The City has now got the green light from the National Housing Department to adjust the fixed interest rate on municipal home loans from 13,5% to the external mortgage rate, which is currently 11%.

"This will provide welcome relief for 27 500 occupants of Council's home-ownership properties," says Councillor Dan Plato, Mayoral Committee Member for Housing.

"From now on, interest rates applicable to the City's home-ownership property loans will be linked to whatever mortgage rate the major banks are charging on 1 January and 1 July of each year - but not beyond a set maximum of 13,5% per annum," says Councillor Plato.

The first interest adjustment will be reflected on the City's next billing on 15 September 2006.

Councillor Plato urged debtors to use this opportunity to make arrangements to pay off their arrears at the nearest housing office.

Issued by:
Directorate: Communication and Marketing
City of Cape Town
Tel: 021 400 2201
Fax: 021 957 0023

Media queries:
Jan Kruger
Media Liaison Officer
Tel: 021 400 1292
Cllr Dan Plato
Mayoral Committee Member for Housing
Tel: 021 400 1207