How do I get a government housing subsidy?
You can get a government housing subsidy through FLISP (Finance Linked Individual Subsidy Programme). FLISP subsidises the home loans for low to middle-income earners.
You must meet the following criteria for FLISP:
- 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.
If you meet the above criteria, you can apply through your financial institution or with the assistance of a home loan comparison service, such as ooba Home Loans.
The application process usually takes 7 days.
The subsidy depends on your income. The lower your income, the higher the subsidy, which ranges from R30 001 to R130 000.
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
