The FLISP housing subsidy will help you buy a house in 2024

Article summary

• First Home Finance, formerly known as FLISP, will subsidise home buyers with an income ranging from R3 501 to R22 000 per month.
• You can apply for the subsidy online with ooba Home Loans. We submit the application on your behalf and monitor its status.
• The subsidy ranges from R38 878 to R169 264, depending on your income.

Do you dream of owning your own home but assume your income will never allow it? Well, the government provides a subsidy for low-income earners in the form of First Home Finance (formerly known as FLISP).

If you earn R3 501 to R22 000 per month, you can qualify for First Home Finance.

How to apply for First Home Finance?

You can apply online with ooba Home Loans. We provide a form that you can complete in a matter of minutes.

Find out if you qualify and apply with us. We submit the application form on your behalf and monitor the progress of your application so we can update you as needed.

Apply for the subsidy

with ooba Home Loans. The process is as follows:

• Submit the home loan application.
• Fill in the form on our website.
• After you’ve filled in the form, an ooba Home Loans consultant will get in touch to determine that you fit the profile for a First Home Finance subsidy.
• The consultant completes and submits the prequalification form.
• The outcome is reported to the buyer.

Note The application process should take around 7 days.

What can you buy with the subsidy?

The government lists some of the options:

• Buy an existing house/apartment.
• Buy a serviced residential site.
• Build a house on a serviced residential site, if the site was not acquired through a government housing subsidy in the past.

What documents do I need to apply for First Home Finance?

• RSA bar-coded Identity Document (ID)
• Bar-coded Permanent Residence Permit (where applicable)
• Birth Certificates/RSA IDs of all financial dependants (where
• applicable)
• Proof of Foster Children Guardianship (where applicable)
• Marriage Certificate, Civil Union Certificate or Cohabiting Affidavit,
• Proof of Partnership (where applicable)
• Divorce Settlement (where applicable)
• Spouse’s Death Certificate (where applicable)
• Proof of Monthly Income
• Home Loan Approval in Principle/Grant letter from an accredited
• Lender
• Agreement of sale for the residential property
• Building Contract and Approved Building Plan (where applicable)

What are the qualification criteria for First Home Finance?

• 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 much is the First Home Finance subsidy?

The subsidy ranges from R38,878 to R169,264, depending on your income. The lower your income, the higher the subsidy.

How can I use the subsidy?

The subsidy can be used:

• As a deposit on your home loan.
• As an extra payment in your home loan. Use our Extra Bond Payments Calculator to determine by what amount said payment would reduce your monthly repayments.

First Home Finance will also help you acquire a home loan, as the bank will know that you have finances available to use as a deposit or pay into the home loan.

The deposit or extra repayment can in turn reduce your interest rates, saving you in the long term.

Why is the government providing a subsidy?

Homeownership provides a powerful asset and a sense of security. A home can be passed down through generations.

As such, it strengthens society as a whole to have more homeowners, who will be more likely to invest in the economy when they have a solid foundation to build on.

Can I use the subsidy to build a home?

You can indeed.

• You can use the subsidy to buy a serviced residential site (a plot with access to basic services), although you must be registered on the Western Cape Housing Demand Database.
• You can use it to build a house on a serviced residential site that was not acquired through a government subsidy in the past. Note that your builder must be registered with the National Home Builders Registration Council (NHBRC).

Can I apply for a home loan at the same time

You can do exactly that with ooba Home Loans. We submit your application to multiple banks so that you can compare deals and choose the best one.

This, in addition to qualifying for the First Home Finance subsidy, will grant you a high chance of approval.

Making homeownership a reality

So if you’re a low-income earner, take this opportunity to become a homeowner, acquiring a powerful asset that can be passed down to your children.

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