How to get a first-time home buyers subsidy in SA

Article summary

• The government provides first-time homebuyer subsidies in the form of FLISP.
• To qualify for FLISP you need to fall within an income bracket of R3 501 to R22 000 per month.
• You can apply with ooba Home Loans; we will submit the paperwork and monitor the status of your application.

If you’re a first time home buyer looking to get on the property ladder, it helps to know that you can get a first time home buyer’s subsidy to make your dream of homeownership a reality.

The subsidy we refer to is provided by the South African government in the form of FLISP (Finance Linked Individual Subsidy Programme), and is aimed at home buyers who fall within a low income bracket.

If your income ranges from from R3 501 to R22 000 per month, you may qualify for this first time home buyers subsidy.

Here we cover:

1. FLISP requirements.
2. How much is the FLISP subsidy?
3. FLISP application process.

1. FLISP requirements

• As mentioned, 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.

How to fund your FLISP application:

Previously, you had to successfully apply for a home loan before you could apply for FLISP, but now there are a range of options available to you when it comes to financial backing for your application, 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.

2. How much is the FLISP subsidy?

The subsidy ranges from R30 001 to R130 000, depending on your income. The lower your income, the higher the subsidy.

For more detail, see the chart below.

The subsidy provides a sizeable amount that can help you with your home loan in several ways. For example:

• You can use it as a deposit. Deposits are the primary barrier to entry for first-time home buyers, and having one on-hand will improve your chance of bond apporval and lead to lower interest rates.
• You could pay the subsidy directly into your bond, reducing your bond repayment term, monthly repayments and interest rates. See our Extra Payments Calculator to determine how one of the subsidy amounts listed above would affect your home loan payments if used as an extra payment.

3. FLISP application process

You can apply for FLISP with your financial institution, or with a home loan comparison service such as ooba Home Loans.

We make the application process easier by submitting the paperwork on your behalf and monitoring the progress of your application.

See the application process below:

Are you interested in applying for FLISP? Get all your questions answered, such as whether you qualify, how to apply and how FLISP can be used to acquire your first home.