Is First Home Finance a loan?

First Home Finance is not a loan, it is a subsidy. You will not have to repay it.

The funds are provided to you by the National Housing Finance Corporation (NHFC), and you can use those funds to acquire a home without having to worry about paying the NHFC back. Ways to use the subsidy include using it as a deposit or paying it directly into your home loan.

Bear in mind that in order to qualify for First Home Finance you need to meet the following criteria:

• Your income must range from R3 501 to 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.