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South Africans applying for home loans and house subsidy, here is some great news for you

South Africans applying for home loans and house subsidy here is some great news for you

Planning on buying your first home but you have had no luck with home loans? Or do you own a plot but not sure about your finances? Thinking or worrying about a deposit? heard of FLISP? Finance Linked Individual Subsidy Programme (FLISP). These are questions most first home owners have and not so many ever get the proper answers they are looking for.

For those of you who earn between R3,500 – R22,000 and wish to purchase a home, here is some assistance from government. This applies to all provinces. When applying home loans at any bank, please indicate that you wish to apply for FLISP, all the major banks are aware of this programme and will direct you. The financial assistance you get from government will reduce your debt (Home loan) with the bank, so you do not miss out.

Applying for a bond to buy your first home can seem overwhelming and terrifying when you’re not a big money earner. The South African government has given us a solution to empower every citizen and created FLISP to enable lower and medium income earners towards claiming their stake in the property market. As a subsidy, FLISP can be used to put down a deposit on your first home or, used to shorten your home repayment.

Home loans and how to apply for one

What is FLISP and how is it relevant to home loans

FLISP provides lower and medium income earners, especially those who cannot qualify for home loans, with a substantial subsidy, that can be used to purchase property. Subject to pre-approval of a home loan, FLISP subsidies can be applied for, by any South African family whose household income falls between R3,501 and R22,000 per month may qualify should they meet the requirements of FLISP.

Previously, the maximum threshold was set at R15,000 per month, but thanks to the change in legislation and additional budgetary commitments made by the South African government in July 2018, FLISP is now an option for many more first time home buyers in south Africa. With the assistance from the FLISP subsidy will effectively reduce your monthly bond instalment.

Owning a place of land (plot) is good if you are able to build your home on it, however building materials are not cheap and can sometimes set you back if you do not have enough funds. FLISP is there to assist with building materials. Provided that your home builder is registered with the NHBRC.

Here is a list of qualifying criteria when applying for FLISP

You qualify for the home subsidy if you:

  • Earn between R3,501 to R22,000.
  • Are a South African or a permanent resident of South Africa.
  • Have not received any government housing subsidy before .
  • Have not owned fixed residential property before.
  • Over the age of 18 and competent to contract.
  • Are Married or cohobating.
  • Single with financial dependents.  

Here is the home subsidy amount you can qualify for

Your subsidy amount will depend on your income and ranges between R27,960 – R121,626. You can download the brochure from their website for more information.

We have provided a link for more information you may require or for any more questions you might want to read further on finance linked individual subsidy programme article on the western cape government website. FLISP is like being given aid and this matters greatly for those who cannot qualify for home loans, just so you can afford to buy your dream home as all South African has a right to own a home. The great thing about the FLISP Subsidy is you do not have to pay it back. Hope this article helped with some of your questions you had as first time home owner.

If you would like guidance on building your first home, contact us.

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Titanshift Projects

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