Get closer to owning a home with FLISP
Owning a home is a life goal for many people, and there are ways for first-time homebuyers to achieve this goal.
The government-introduced Finance Linked Individual Subsidy Programme (FLISP) assists first-time buyers whose income is above the limit to qualify for a free government home but too little to buy without some form of financial help.
FLISP was developed by the Department of Human Settlements (DHS) to enable sustainable and affordable first-time homeownership opportunities to South African citizens and legal permanent residents. The initiative is intended to assist qualifying households to access housing by providing a subsidy that can be used to pay the deposit on a house or to decrease the size of the home loan.
Who qualifies for FLISP?
To qualify for FLISP, you must earn a joint income of between R3 501 and R22 000 per month and be a first-time homebuyer. Individuals in the abovementioned salary bands generally earn too little to qualify for an adequate housing loan secured by a mortgage and yet too much to qualify for adequate government housing subsidy support, i.e. a ‘free basic house’.
The once-off FLISP subsidy amount ranges between R27 960 and R121 626, depending on your monthly income. Once the bond amount is approved, you will have to approach the National Housing Finance Corporation (NHFC) for the subsidy on 0860 011 011 or email [email protected] to see whether you qualify.
If you have any more questions about how to make your homeownership dream a reality, reach out to our team of home loan specialists and they will provide you with all the guidance you need.