1. Who is eligible for Relocation Assistance?
2. What is the Record of Understanding?
3. What is a Rightsizing Agreement?
4. How do I apply for Relocation Assistance?
5. What is the value of Relocation Assistance?
6. What documentation must I supply when applying for relocation assistance?
7. Where can I find out more about Relocation Assistance?

Relocation Assistance is open to anyone who:

1. Has borrowed money from an accredited lender to buy a house, but
2. Has defaulted on down payments by more than three instalments.

If you have owned a property before, or have previously received a housing subsidy from the government, you can still apply for Relocation Assistance.

In order to apply for Relocation Assistance, you must:

1. Fall within the scope of the Record of Understanding, and
2. Have entered into a Rightsizing Agreement with the lender (the institution where you got your house bond).

The Record of Understanding is an agreement between the Banking Council and the government.

It says that if a borrower is three months or more behind on payments on a home loan, the lender will review the borrower's ability to repay the bond and either put together another payment plan at adjusted, more affordable rates, or enter into a Rightsizing Agreement.

The Record of Understanding only holds for people with a gross household income of less than R3 500 a month and who meet other requirements laid down by Servcon Housing Solutions, a government-funded statutory body established as part of the housing policy for this process.

A Rightsizing Agreement is an agreement that allows borrowers who can't afford repayments on their home loans to stay on the property, for a limited time, while they look for property they can afford. This second property is called the "rightsized property".

While they are looking, the borrower has to pay the lender who holds the bond a reasonable occupation rental on a month-to-month basis. During this time, the lender who holds the bond (or who has repossessed the property) has the right to sell the property.

Borrowers who have entered into a Rightsizing Agreement can then apply for a bond that they can afford to help them find a rightsized property. Servcon Housing Solutions a government-funded statutory body, is there to help them find a rightsized home and apply for Relocation Assistance.

Servcon Housing Solutions deals with all applications for Relocation Assistance. You can apply for Relocation Assistance once you have made a Rightsizing Agreement with your lender, or once you have found a rightsized property to buy or rent.

The amount of relocation assistance is equal to the Individual or Institutional Housing Subsidy that you would qualify for. In other words, the maximum amount of the Relocation Assistance, should you qualify, is R36 528.

See Individual Housing Subsidies or Institutional Housing Subsidies for more details.

• A completed application form from Servcon
• A certified copy of the Rightsizing Agreement
• A certified copy of the sale or lease agreement for the rightsized property
• Written confirmation of the mortgage bond (if applicable).