How to apply for a First Home Finance grant

Article summary

• First Home Finance is a subsidy aimed at first time homebuyers with an income ranging from from R3 501 to R22 000 per month.
• You can apply online with ooba Home Loans in a matter of minutes.
• You can use the subsidy as a deposit or pay it directly into your home loan.

First Home Finance is a boon for first-time homebuyers. It provides you with a  subsidy for your home purchase, but only if you fall within a low-income bracket. It makes homeownership a reality for low earners.

So how do you apply for the First Home Finance grant? We provide details.

Step One: The criteria

First, ensure that you meet the qualification criteria. They are as follows:

• 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.

Step two: Make an Offer to Purchase

Find the home you want and make the offer.

You used to have to apply for a home loan and have it approved before applying for First Home Finance, but this is no longer the case.

You can now use other sources of finance to apply, such as:

• 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.

Step three: Apply for the First Home Finance grant

You can apply Department of Human Settlement office, or call the National Housing Finance Corporation on 010 085 2199.

Another option available to you is to apply with ooba Home Loans. You can apply online in a matter of minutes.

We submit the application on your behalf and monitor its progress. We update you as needed.

At the same time, we can help you obtain a home loan. We submit your application to multiple banks so you can compare the deals they offer and choose the most favourable package.

So you save resources both by receiving the subsidy and by obtaining a better home loan deal.

How does the First Home Finance grant help?

• Use it as a deposit, increasing your chances of home loan approval and earning you better interest rates.
• Pay it directly into your home loan, reducing your monthly repayments and your home loan term.

How much is the subsidy?

The amount depends on your income. The lower your income, the higher the subsidy. See the chart below for more detail:

Consult the chart above to see what subsidy you’re likely to receive, then enter that amount into our Extra Payments Calculator to see the effect it will have on your home loan.