Government housing subsidy for first time homeowners 2023

Article summary

• FLISP is a government subsidy aimed at first-time home buyers in a low income bracket.
• Securing a FLISP subsidy will increase the likelihood of the bank approving your home loan application.
• Apply for FLISP through a home loan comparison service such as ooba Home Loans to expedite the process.

Home ownership need not be a distant dream, even if you’re in a low-income bracket.

Now there’s a government housing subsidy for first-time homeowners in the form of FLISP (Finance Linked Individual Subsidy Programme).

If your income falls between R3 501 to R22 000 per month, then you may qualify for FLISP, provided you meet the other requirements.

Here’s what you need to know about FLISP.

FLISP: The government subsidy for first-time homeowners

1. Qualification criteria
2. How much is the subsidy?
3. How do I apply for the subsidy?

1. Qualification criteria

Aside from falling within the correct income bracket, you need to meet the following criteria:

• 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.

2. How much is the 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.

3. How do I apply?

You can apply through your financial institution or with the help of a home loan comparison service, such as ooba Home Loans.

Note You used to need your home loan approved before applying for FLISP, but now you can use other sources of finance, 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

If you meet the qualification criteria, have a source of finance available, then the bank will likely approve your home loan on the basis that you have the resources available to pay it off in the form of FLISP.

Applying through ooba Home Loans:

The application process usually takes 7 days.

So consider utilising this government programme to make home ownershjp a reality. The government employs programmes such as FLISP to stimulate the economy and encourage home ownership among South Africans.

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.