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Government sponsored housing finance for first-time homebuyers

Obtain housing finance in the form of First Home Finance, a government subsidy that makes homeownership a reality for low-income earners

housing finance

Article summary

  • First Home Finance is a subsidy aimed at low-income earners (R3 501 to R22 000 per month).
  • It provides housing finance in the form of a subsidy ranging from R30 001 to R130 000.
  • You can apply online with ooba Home Loans in a matter of minutes.

Homeownership grants you a powerful asset and a sense of security for life. But if you’re a low-income earner, you may think it’s out of your reach.

Not so, thanks to housing finance provided by the South African government in the form of First Home Finance (formerly known as FLISP).

First Home Finance is a government subsidy specifically aimed at low earners (R3 501 to R22 000 per month). It provides funds that give you a foundation for acquiring a home loan.

It increases your chances of home loan approval and also enables you to obtain a home loan with lower interest rates.

How to obtain  government housing finance

First, ensure that you meet the qualification 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.

If you do, you can apply quickly and easily with ooba Home Loans.

Simply fill in the application form online and we’ll submit it on your behalf. We then monitor the application status and update you as needed.

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.

Housing Subsidy South Africa

You can use the subsidy as a deposit, granting you a high chance of home loan approval even if you have a low credit record.

You can also pay the subsidy directly into your home loan, reducing your home loan term and repayments. Use our Extra Payments Calculator to determine how such a payment will affect your home loan.

Start your journey toward homeownership

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.

Apply for a housing subsidy

First Home Finance offers homebuyers a subsidy on their first home.


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