FLISP Subsidy For First-Time Buyers
Category Property News
FLISP - Governmental Housing Subsidy For First-Time Buyers
Buying your first home? While property prices have ballooned over the years, the idea of being able to buy your dream home was out of reach for most South Africans, but now FLISP offers citizens the opportunity to enter the property market and own their own homes.
What is FLISP
FLISP is a government-backed initiative that seeks to promote and secure first-time home ownership for lower-income earners in South Africa.
The FLISP subsidy makes it possible for people like you to own the home you want.
The Finance Linked Individual Subsidy Programme (FLISP) was introduced by the Department of Human Settlements in 2012 and, in July 2018, the applicable income threshold for the programme was increased
Check out the FLISP website here
How does the FLISP Subsidy work?
FLISP provides lower and medium-income earners 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
What can I use my FLISP Subsidy for?
You can use your FLISP housing subsidy to put down a deposit on your first home, shorten your home loan repayment period or lower the monthly repayment amounts.
- Purchase an existing residential property for the first time;
- Use for Transfer/Bond Costs;
- Buy a subsidy house, in a development;
- Use for a deposit;
- Purchase a vacant serviced residential stand;
- Build a new house with the assistance of a registered NHBRC builder
Applying for a bond to buy your first home can seem a terrifying prospect when you're not a big money earner. The South African government, motivated by its desire to uplift and empower every citizen, created FLISP to enable lower and medium-income earners towards claiming their stake in the property market.
You don't need to pay back your FLISP subsidy at any time.
What is the FLISP Application Criteria
- Earn either a single or joint gross monthly household income of between R3 501 to R22 000
- Be a first-time home buyer
- Be over the age of 18 years
- Have financial dependants
- Have never benefitted from any Government Housing Subsidy Scheme before
- Have an Approval in Principle for a home loan from an accredited South African bank
FLISP is a one-time payment subsidy. You cannot apply for a second FLISP subsidy when you want to purchase a second home.
Your FLISP Subsidy Amount
Use the FLISP website's subsidy calculator to work out how much you can expect to receive from your FLISP application. For example, if your household's monthly income is between:
- R3,501 and R3,700, you can apply for a FLISP subsidy of up to R121,626.
- R7,101 and R7,300, you can apply for a FLISP subsidy of up to R102,893.
- R21,801 and R22,000, you can apply for a FLISP subsidy of up to R27,960.
Where to Apply for a FLISP Subsidy
FLISP is a government-backed initiative, the Department of Human Settlement administers and processes applications for a FLISP subsidy.
Once you've been pre-approved for a home loan, apply for a FLISP subsidy at your local Department of Human Settlement office, or call the National Housing Finance Corporation on 0860 011 011.
New Regulations effective from 1 April 2022
As from 1 April you no longer need a finance approval from one of the major financial institutions.
First time buyers can qualify for a FLISP subsidy if they have financial assistance to buy a property in the form of:
- the beneficiary's pension/provident fund loan,
- a co-operative or community-based savings scheme, i.e. stokvel,
- the Government Employees Housing Scheme,
- any other Employer-Assisted Housing Scheme,
- an unsecured loan,
- an Instalment Sale Agreement or Rent-to-own Agreement.
Also new from April 2022:
- Attorney transfer bond fees are also covered by a FLISP subsidy
- Retrospective FLISP subsidies for current home owners will soon also be available
Contact your SAProperty.com Property Practitioner today. Our Team are able to assist you with finding the perfect home and your FLISP Application.
Author: Marketing
