The Financed Linked Subsidy Programme (FLISP) is a South African government programme that subsidises the home loans of first-time home buyers who fall within a low income bracket.
The subsidy is paid into your home loan account or your attorney’s trust account. It can also be used as a deposit on your home loan.
In order to qualify FLISP you will need to meet the following criteria:
- Your income must range between R3501 and R22 000 per month.
- You must be a South African citizen with permanent residency in South Africa.
- You must not have received a government housing subsidy before.
- You must be married or cohabiting OR single with financial dependents.
- You must be over 18 years old.
- You must not have owned a fixed residential property before.
The subsidy ranges from R30,000 to R130 000 depending on your income. The lower the income, the higher your subsidy.
You used to have to apply for a home loan and have the application approved before you could apply for FLISP, but as of April 2022, this is no longer necessary. You can now use other sources of finance to apply, including:
- 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