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The FLISP housing scheme: Everything you need to know

The FLISP housing scheme now rebranded as First Home Finance, subsidizes home purchases for first-time buyers with low income.

Flisp Housing Scheme

Article summary

  • FLISP has been rebranded as First Home Finance.
  • First Home Finance offers the same as FLISP; a subsidy for first-time homebuyers.
  • The subsidy is aimed at homebuyers with an income of R3 501 to R22 000 per month.

If you’re a low-income earner and you think homeownership is out of your grasp; think again. The FLISP housing scheme, now rebranded as First Home Finance, subsidizes home purchases for first-time homebuyers who fall within a low-income bracket (specifically R3 501 to R22 000 per month).

First Home Finance: The new FLISP

If you’ve heard of FLISP and are wondering what ‘New Home Finance’ refers to, rest assured that it’s the exact same program as FLISP, just with a new name.

That means it provides a subsidy of R30 001 to R130 000 for your home purchase. But only if you 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.

If you meet the criteria, you can apply for First Home Finance (more on the application process below).

The lower your income, the higher the subsidy you will receive if your application is approved.

For more detail, see the chart below:

Housing Subsidy South Africa

The subsidy makes the bank more likely to approve your home loan, as they know you now have resources available to pay off the loan.

It can also help earn you lower interest rates on the loan. You can use the subsidy as a deposit or pay it directly into your home loan. Check our Extra Payments Calculator to see the effect that a subsidy (consult the chart to see your likely amount) will have on your home loan term and interest rates.

Applying for First Home Finance

Apply with ooba Home Loans, and the application will be quick and easy. You can apply online in a matter of minutes.

We submit your application and monitor it so we can update you as needed.

You can also apply for a home loan with us. We’ll submit your application to multiple banks, which, along with the subsidy granted by First Home Finance, will increase your chances of home loan approval.

Apply for a housing subsidy

First Home Finance offers homebuyers a subsidy on their first home.

DO I QUALIFY?

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