The National Housing Finance Corporation (NHFC) is one of several Development Finance Institutions (DFIs) created by the South African Government to sustainably improve on the socio-economic challenges of the country.  The developmental financial focus of the NHFC is specifically about finding workable models on affordable housing finance for the low- and middle-income target market.

The NHFC defines its end-beneficiary target market as “any South African household with a monthly income that is between R1 500 and R15 000”, namely, the low- to middle-income household also known as the Gap market.  This market sector is mostly able to contribute towards its housing costs, but finds it hard to access bank-funded housing finance.

The NHFC was established in 1996, by the then National Department of Housing (NDoH), to offer housing finance, project facilitation and technical assistance to private and public entities ensuring availability of housing stock for the target market.  As a means of sustaining its funding programs, the NHFC searches for better ways to mobilise finance for affordable housing from sources outside the state in partnership with the broadest range of organisations.

The NHFC, in the affordable housing finance market sector, adopts a role of Financier, Facilitator and Innovator, to ensure viable housing finance solutions; growth of sustainable human settlements; and mobilization of relevant partnerships, through enhanced insights and knowledge gained.