Are you dreaming of owning your first home but worried that your income might not stretch far enough? Good news: the FLISP subsidy is here to help! With a government housing subsidy of up to R121,626, you could soon be a homeowner. Here’s what you need to know about the Finance Linked Individual Subsidy Programme (FLISP) and how it’s making home ownership possible for many South Africans.

   

 What is FLISP?

FLISP is a government initiative aimed at helping lower- and middle-income South Africans buy their first homes. Created by the Department of Human Settlements in 2012 and expanded in 2018, FLISP provides a financial boost to make buying property more affordable for many families.

How Does FLISP Work?

If your monthly household income falls between R3,501 and R22,000, you may qualify for FLISP, which can help reduce your bond amount or lower monthly repayments. You can even use the subsidy as a down payment on your new home, which can make your dream of owning property more manageable.

Initially, only households earning up to R15,000 monthly qualified, but this threshold has since been raised, opening doors for many more South Africans.

How Can You Use the FLISP Subsidy?

With the FLISP subsidy, you have options:

  • Down Payment Assistance: Use the subsidy toward your down payment to reduce your bond size.
  • Lower Monthly Payments: Apply the subsidy to decrease your monthly repayments.
  • Shorten Your Repayment Period: Use the subsidy to pay off your loan faster, saving on interest.

FLISP is the government’s way of saying, "We've got your back!" to aspiring homeowners who might feel that home ownership is out of reach.

Do I Have to Pay Back the FLISP Subsidy?

Here’s the best part – no repayment is required! Once you receive FLISP funds, they are yours to keep, making it a true boost toward home ownership.

Eligibility Criteria for FLISP

Thinking of applying? Make sure you meet these requirements:

  1. Income Requirements: Your household income should be between R3,501 and R22,000 per month.
  2. Citizenship and Age: Applicants must be South African citizens, 18 years or older, and either married, cohabiting, or single with at least one dependent.
  3. Home Loan Approval: To apply for FLISP, you must first secure approval for a home loan. FLISP acts as a top-up after you’ve been approved by a bank.
  4. First-Time Subsidy Recipient: You cannot have received any previous housing subsidy from the government or live in an RDP house.
  5. One-Time Use: FLISP is a one-time subsidy only. Once used, it can’t be reapplied for.

How Much Can I Receive Through FLISP?

The amount of FLISP subsidy you qualify for depends on your income:

  • Income of R3,501 - R3,700: Eligible for up to R121,626
  • Income of R7,101 - R7,300: Eligible for up to R102,893
  • Income of R21,801 - R22,000: Eligible for up to R27,960

How to Apply for a FLISP Subsidy

Ready to take the next step? Once you’ve been pre-approved for a home loan, you can apply for a FLISP subsidy through your local Department of Human Settlement office or by calling the National Housing Finance Corporation at 0860 011 011.

FLISP is opening doors for many South Africans, giving first-time buyers the support they need to make home ownership a reality. So why wait? Explore how FLISP can help you move into your dream home!

Link to Apply: https://www.ooba.co.za/resources/flisp-requirements/