Government subsidy for first time home buyers

Article summary

• First-time homebuyers can receive a subsidy of R30 001 to R130 000 depending on their income.
• The subsidy is paid out by National Housing Finance Corporation (NHFC).
• The government only subsides buyers with an income of R3 501 to R22 000 per month.

First-time homebuyers looking to get on the property ladder now have an option. FLISP, which stands for Finance Linked Individual Subsidy Programme, is a government subsidy for first-time home buyers.

Who qualifies for the subsidy?

To qualify, you have to 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.

Who pays the government subsidy?

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

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:

If you meet the qualification criteria, you can apply for the subsidy with the help of your financial institution or a home loan comparison service, such as ooba Home Loans.

This government subsidy for first-time home buyers can be used:

• As a deposit on your home loan.
• As a payment into your home loan, reducing your monthly repayments.

If you plan to pay the FLISP subsidy into your home loan, use our Extra Payments Calculator to determine the amount by which it will reduce your monthly repayments and home loan term.