Human Settlements Minister Mamoloko Kubayi says the rejection rate of historically disadvantaged persons applying for home loans is concerning.
According to information provided by banks to the Office of Disclosure, the average mortgage loan approved per historically disadvantaged persons was R527 000 compared to previously advantaged persons at an average mortgage value of R2.5 million.“The number of HDPs which is your historically disadvantage individual, application is twice as high as that compared to white, for example a black person walking into a bank versus their white counterpart or similar.
“Sometimes they are myths, sometimes it’s people’s realities where people say to us, I walked with a partner or person, same background, but I have been racially profiled. Even if their myths and allegations, once we compel everybody to disclose, we do believe that the process must be transparent,” she adds.