Cape Coastal Homes Logo
You are here: Cape Coastal Homes / Latest News / Flisp Governmental Housing Subsidy For All First Time Buyers Earning Up To R22 000 Pm

FLISP - Governmental Housing Subsidy For All First-Time Buyers Earning Up To R22 000 p/m

SHOWING ARTICLE 105 OF 1096
GALLERY

FLISP - Governmental Housing Subsidy For All First-Time Buyers Earning Up To R22 000 p/m

WHAT IS A FLISP SUBSIDY?

The Finance Linked Individual Subsidy Programme (FLISP) programme is a housing subsidy for first-time home buyers to assist with purchasing a home. The subsidy is paid directly to the conveyancing attorney or financial institution and can be used as a deposit to buy a home, or to pay such into an existing home loan and reduce the monthly instalments.

WHEN CAN I APPLY?

  • To apply for FLISP, you must be in the process of purchasing a property. You can also apply if the property was registered in your name in the past 12 months. Any applications after this window period are currently not considered.
  • Once you've received a home loan from a bank, the following documents are required, together with the completed FLISP application:
  • Certified copies of identity documents (IDs)
  • Certified copies of dependents' birth certificates
  • Certified copy of marriage certificate/ Final order of divorce/Death Certificate
  • Original recent payslip/affidavit confirming unemployment/ proof of social grant
  • Certified copy of the deed of sale/ offer to purchase
  • Certified copy of the bond approval/ bond quotation
  • Original/ certified copy of the statement of transfer cost from transferring attorney
  • Certified Copy of Home Loan Approval (if Applicable)
  • Offer to Purchase

WHAT IS IT USED FOR?

The subsidy amount depends on your income and ranges between R30,000 - R130 000.  There is a sliding scale to determine the subsidy for different income brackets.

If you qualify for the FLISP subsidy - what can it be used for?

The FLISP subsidy assists you to:

  • Purchase an existing residential property for the first time;
  • Use for Transfer/Bond Costs;
  • Buy a subsidy house, in a development;
  • Use for a deposit;
  • Purchase a vacant serviced residential stand (i.e. plot) linked to house-building contracts. Only use builders registered with the National Home Builders Registration Council (NHBRC) or
  • Build a new house with the assistance of a builder registered with the NHBRC on a serviced residential stand (i.e. plot) that you already own.

REQUIREMENTS FOR FLISP

  • Earn either a single or joint gross monthly household income of between R3 501 to R22 000
  • Be a first-time home buyer
  • Be over the age of 18 years
  • Have financial dependants
  • Have never benefitted from any Government Housing Subsidy Scheme before
  • Have an AIP (Approval in Principle) for a home loan from an accredited South African financial institution.

LATEST ADJUSTMENTS TO THE REGULATIONS

As from 1 April 2022, persons who in the past could not qualify for FLISP due to them not qualifying for a home loan or mortgage will now be able to utilise other sources of finance to acquire a property.

Amongst others, residents with a household income of R 3 501 - R 22 000 per month will be able to access FLISP through:

  • the beneficiary's pension/provident fund loan
  • a co-operative or community-based savings scheme, i.e. stokvel
  • the Government Employees Housing Scheme
  • any other Employer-Assisted Housing Scheme
  • an unsecured loan
  • an Instalment Sale Agreement or Rent-to-own Agreement
Author ESI Attorneys
Published 07 Sep 2022 / Views -
Disclaimer:  While every effort will be made to ensure that the information contained within the Cape Coastal Homes website is accurate and up to date, Cape Coastal Homes makes no warranty, representation or undertaking whether expressed or implied, nor do we assume any legal liability, whether direct or indirect, or responsibility for the accuracy, completeness, or usefulness of any information. Prospective purchasers and tenants should make their own enquiries to verify the information contained herein.