Are you a first time home buyer who is wondering what is a Flisp Grant, or how to apply for a home loan subsidy from the government, and what is the process and requirements?
This guide to the Finance Linked Individual Subsidy Programme explains how to apply for a home loan subsidy in South Africa:
What is the Finance Linked Individual Subsidy Program (FLISP)?
Introduced in 2012, the Finance Linked Individual Subsidy Program (FLISP) is a housing subsidy for first-time home buyers. The once-off lump-sum aims to assist first time home buyers with costs related to buying your first property in South Africa.
The subsidy was developed by the Department of Human Settlements to enable sustainable and affordable first-time homeownership. The subsidy can be used to cover the cost of your home deposit, conveyancing fees for the transfer of your property, or even bond registration fees.
Requirements for Flisp Grant:
To apply for FLISP Subsidy Houses you must be in the process of purchasing a property and;
- Already approved or pre-approved for a home loan by a financial institution.
- You must be a South African Citizen or you have permanent residency in South Africa.
- You are over 18 years.
- You are single with financial dependents (a child, siblings or parents, etc) or
- You are married or cohabiting.
- You earn between R3 501 to R22 000. (combined household income)
- You have not received a government housing subsidy before. (RDP)
- Never owned a home.
How does the FLISP Subsidy work?
FLISP works on a sliding scale, this basically means the more you earn, the less you get! Subsidies are provided depending on your income bracket and will be used to reduce your monthly home loan repayments.
Your FLISP subsidy amount is based on your household income and ranges between R 27 960 – R121 626.
Use this FLISP website’s subsidy calculator to see how much you qualify for!
How do I apply for the Finance Linked Individual Subsidy Program (FLISP)?
Whether you’re looking for a government housing subsidy in Gauteng or Western Cape, you need to first apply for a home loan, after you’ve been approved, you need to apply for a FLISP Grant online or at The Department of Human Settlements offices or call the National Housing Finance Corporation on 0860 011 011.
Here’s a list of the departments’ contact details in each province:
|Eastern Cape||Steve Tshwete House, 31-33 Phillip Frame Road, Waverly Park, Chiselhurst||043 711 9901/043 711 9902/043 711 9903|
|Free State||7th Floor, OR Tambo House, Cnr Markgraaf & St. Andrews Street, Bloemfontein, 9301||051 405 4400/051 403 3311|
|Gauteng||Lisbon Building, 9th Floor, 37 Sauer Street, Johannesburg||011 355 4000|
|Kwa-Zulu Natal||203 Church Street, Pietermaritzburg, 3201||033 392 6400|
|Mpumalanga||7 Government Boulevard, Riverside Park Building, No. 6 & 7, Nelspruit||013 766 6088|
|Northern Cape||JS du Plooy Building, 9 Cecil Sussman Road, Kimberley, 8301||053 830 9400/053 830 9422|
|North West||3366 Bressemer Street, Mafikeng||018 388 2890/018 388 2891/018 388 2892|
|Western Cape||27 Wale Street, Cape Town||021 483 6488 / 021 483 0623 / 021 483 0611 / 021 483 8984|
Is the Finance Linked Individual Subsidy Program a loan?
According to law, you may only receive government assistance for housing once. FLIST is not a loan, this means you don’t have to pay the government back.
The FLISP is for those who are too rich to qualify for the RDP subsidy but too poor to easily afford a new house.
Can you sell your Flisp Subsidy Houses?
Before 2018, FLISP beneficiaries were not allowed to sell their houses until 8 years after they had purchased their house. However, a decision was taken to remove this sales restriction and you can sell the property at any time.