Housing Scheme Programme

Transcription

1 Housing Scheme Programme

2 The Sweet Deal Unveiled.

3 Why the Housing Support Scheme (HSS)? Challenges with the previous scheme was lack of: Employee affordability Employee credit worthiness Employees living in dignified accommodation Lack of understanding of the process of buying a house 3

4 Why the Housing Support Scheme (HSS)? The HSS is aimed at providing Airports Company South Africa employees a jumpstart into home-ownership. The scheme will help employees to get access to adequate, dignified housing and accommodation. Airports Company South Africa is making the entire buying or renting process easy for employees through the scheme by providing an end to end solution where required. 3

5 Who qualifies for HSS? Permanent, salaried employees with (1) year consistent service. First Time Home Owners (FTHO), Employees with an approval to be part of the housing subsidy scheme. In cases where 2 employees are married and in the employ of ACSA, only 1 employee shall qualify for the scheme. For those employees whose spouse (not in the employ of Airports Company South Africa ) benefits from any type of housing assistance, the employee will not be eligible to participate in the scheme. 5

6 What does the HSS Entail? A lump sum amount, Upfront Deposit Subsidy (UDS) of seventy-five thousand rand (R75 000) for FTHO to serve as a deposit on a property and/or partially/fully cover existing employee debt. The express objective of home ownership as a consequence thereof. A Monthly Housing Subsidy (MHS) amount of one thousand five hundred rand (R1,500) for period of bond payment. A Monthly Rental Subsidy (MRS) up to a maximum amount of one thousand five hundred rand (R1,500) for period of 3 years. Financial wellness training and home ownership education, to assist employees to be financially literate and become informed home owners. 6

7 HSS Tax Treatment A fringe benefit is a benefit that an employee receives, but which does not form part of the employee s primary remuneration package (i.e. an employee s salary cash value). When an employee receives certain fringe benefits, these need to be added to his/her remuneration package and taxed accordingly as prescribed under the relevant Acts: the seventh schedule to the Income Tax Act No. 58 of 1962, and the Tax Administration Act No. 28 of The company decided on: Gross up the once-off R Employees do not need to bear the tax burden as its borne by the employer R1,500 for bond and rental subsidy is taxed based on an employee PAYE marginal tax rate 7

8 Pension Backed Loans (PBL) Employees, provided that they have had one (1) year service with Airports Company South Africa, and in accordance with the Retirement Fund Policy, may qualify for this benefit. Qualifying staff may borrow against their share of the retirement fund up to one-third of the value in the fund, for purchasing a house, land, and building for own occupation or for making improvements to an existing property. The property must be registered or jointly registered in the staff member s name. Pension backed loans carry a negotiated interest rate as prescribed by the lender from time to time. 8

9 Financial and Home-ownership Education Financial Wellness Programme The Financial Wellness Programme is available to all employees, which may be compulsory in some instances. The Service Provider shall facilitate the programme as and when required by Airports Company South Africa. Home-Ownership Educational Programme A compulsory once-off home ownership educational programme for all FTHO is provided for every employee. The Service Provider facilitates the educational programme, through different interventions such as e-learning or conventional classroom training. 9

10 1 Year HSS Celebration 5

11 Scheme FNB Management & Administration

12 The Service Provider, Offer & Benefits Home Finance (Who we are?) Ordinary home loans Building Loans (plot and plan) Equity release (re-mortgage or re-advance) Refinance Pension Back Loans Rental servicing Features & Benefits Up to 105% bond finance No deposit required Home Ownership Programme Opportunity to choose from a list of housing developments Variable or Fixed interest rate options Salary deduction Insurance (Home Owners Cover HOC & Life Cover). NO MEDICAL CHECKS REQUIRED 11 Value Adds Convenient application platforms Pre-approvals Housing developments Area / Property information Online application tracking Customer / Development matching capability Online Will drafting Retrenchment cover assistance

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