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SA First-Time Homebuyer Subsidy Increased


SA First-Time Homebuyer Subsidy Increased

The government's Finance Linked Individual Subsidy Programme (FLISP) has expanded its qualifying criteria and now allows first-time homebuyers who earned a gross salary of up to R22 000 to qualify for a subsidy.

In July 2018 the value of first-time homebuyers subsidies were increased and the qualifying criteria extended from a income limit of R15 000 to R22 000.

Previously, the subsidy for people who earned R12 000 was R37 650, while now beneficiaries can qualify for a subsidy of R77 915 on the same salary.

Households or individuals who earn a gross salary of R15 000 previously qualified for a subsidy of R20 000 can now get a subsidy of R62 304, while locals with an income of R22 000 are eligible for a subsidy of R27 960.

There are no restrictions on the type of property you can purchase if you make use of the subsidy, whether it is an existing home or a new property development.

What is FLISP?

The FLISP programme is a housing subsidy for first-time home buyers that assists them with purchasing a home. The subsidy is paid to your bank or financial institution and will reduce your required monthly loan installments, making it more affordable to purchase a home. Households with an income between R3 501 and R22 000 may qualify for the FLISP subsidy if they meet all other criteria.

Qualifying Criteria:  

- You earn between R3 501 to R22 000

- You are a South African citizen or have permanent residency in South Africa

- You have not received a government housing subsidy before

- You have not owned fixed residential property before

- You are competent to contract - over 18 years

- You are married or cohabiting

- You are single with financial dependents.

Author Cape Town ETC
Published 14 Feb 2019 / Views -
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