- Rent to Own allows residents of the Cape Agulhas Municipal Area to rent affordable accommodation for a period of six to 24 months as a precursor to buying it.
- The 24 months’ deposit savings will be deducted from the home’s purchase price.
- Combined with Help Me Buy a Home (formerly known as FLISP), this signifies the government’s commitment to promoting homeownership for low-income earners.
The government continues to provide aid to aspiring homeowners in the knowledge that homeownership provides low earners with a powerful asset and strengthens society as a whole by incentivising investment in the economy.
The better-known program is Help Me Buy a Home (formerly known as FLISP), which provides a subsidy to first-time homebuyers with an income ranging from R3 501 to R22 000.
Now a new program has been introduced in combination with Help Me Buy a Home. This is the Rent to Own scheme, which applies to low-income earners in the Cape Agulhas Municipal Area.
What is Rent to Own?
It allows applications to rent affordable accommodation as a stepping stone to buying the property.
The future home can be rented for a period of six to 24 months. Following this period, the 24 months’ deposit savings will be deducted from the home’s purchase price.
This helps ease buyers into the homeownership market and, combined with Help Me Buy a Home, makes homeownership a reality for low earners.
How do I qualify for Rent to Own?
You must meet the following criteria:
- You must reside in Bredasdorp or the broader Cape Agulhas Municipal Area.
- You must earn between R3 501 to R 22 000 gross combined income per month.
- You must not have previously owned a property.
- You must be a South African citizen or have a permanent residency.
- You must be married, cohabitating or have a financial dependent.
What is Help Me Buy a Home (FLISP)?
This programme provides a subsidy ranging from R30 001 to R130 000 to first-time homebuyers with an income ranging from R3,501 to R 22,000.
How do I qualify for Help Me Buy a Home?
The qualification criteria are the same as that of Rent to Own, except you don’t need to reside in the Cape Agulhas Municipal Area. Help Me Buy a Home is aimed at homebuyers throughout South Africa.
How do I apply for Help Me Buy a Home?
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.
Note The application process usually takes around 7 days.
Making homeownership a reality
Help Me Buy a Home increases the chances of home loan approval and makes homeownership affordable for low-income earners.
Combined with Rent to Own, it signifies the government’s commitment to promoting homeownership in South Africa.
So if you live in the Cape Agulhas Municipal Area, you can benefit from Rent to Own, but if you live anywhere else, you still have the Help Me Buy a Home option available to you.
Are you interested in applying for Help Me Buy a Home (formerly known as FLISP)? Get all your questions answered, such as whether you qualify, how to apply and how Help Me Buy a Home can be used to acquire your first home.
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