Housing subsidy: How to own your own home

Article summary

• The government housing subsidy makes homeownership a reality for low-income earners.
• The subsidy comes in the form of FLISP, and ranges from R30 001 to R130 000.
• One of the qualification criteria is that your income range from R3 501 to R22 000 per month.

Homeownership is no longer just a dream. It’s possible even for low-income earners to achieve home ownership in South Africa, thanks to a housing subsidy provided by the government.

Government housing subsidy: What is it?

The subsidy comes in the form of FLISP (Finance Linked Individual Subsidy Programme), which is paid out by the National Housing Finance Corporation (NHFC).

How much is the housing subsidy?

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

See the subsidy amounts in more detail:

How to use the housing subsidy:

• Use it as a deposit.
• Pay it into your home loan account.

Either option will reduce your interest rates and home loan 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.

How do I qualify for the housing subsidy?

You need 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.

How do I apply for the housing subsidy?

Apply online with ooba Home Loans. We organize the paperwork and submit the application on your behalf. We then monitor your application and keep you updated on its status.

See the process below: