Qualify for FLISP in 2023 and own your own home

Article summary

• First Home Finance (formerly known as FLISP) is a government subsidy aimed at low-income home buyers.
• If your income ranges from R3 501 to R22 000 per month, you may qualify for this subsidy.
• The subsidy, which ranges from R30 001 to R130 000 depending on your income, dramatically improves your chances of home loan approval.
• You can apply online in a matter of minutes with ooba Home Loans.

If you’re a first-time homebuyer, it’s worth applying for First Home Finance (formerly known as FLISP).

This government subsidy makes homeownership a reality for people in a lower income bracket.

Qualifying for First Home Finance will:

• Make it easier to afford a home loan.
• Make the bank more likely to grant your home loan application.

How do I apply for First Home Finance?

The application is quick and easy. Simply apply online with ooba Home Loans. You can fill in the form online and we will submit it on your behalf and monitor the progress of your application so we can update you as needed.

How long does the application process take?

The process usually takes around 7 days.

The application process

Do I qualify for First Home Finance?

The qualification criteria 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.

How much is the First Home Finance subsidy?

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

For more details, see the chart below.

What can I do with the subsidy?

You can:

• Use the subsidy as a deposit.
• Pay the subsidy toward your home loan, reducing your monthly repayments and home loan term.

Who provides the subsidy?

The National Housing Finance Corporation (NHFC) distributes funds to qualified applicants, according to the budget granted to them by the government.

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

• Certified copies of identity documents (IDs).
• Certified copies of dependents’ birth certificates.
• Certified copy of marriage certificate/ Final order of divorce.
• Original recent payslip/affidavit confirming unemployment/ proof of social grant.
• Certified copy of the deed of sale/ Offer to Purchase, if applicable.
• Certified copy of the bond approval/ bond quotation, if applicable.
• Original/ certified copy of the statement of transfer cost from the transferring attorney, if applicable.

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.

What happens to my home loan application if I don’t qualify for First Home Finance?

Your application still goes ahead, and you still have a good chance of approval due to applying to multiple banks.

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.