Strange as it may seem, right now is an excellent time to buy your first property. A record low repo rate of 3,50%, the lowest since 1973, and record high home-loan approvals are combining to afford first-time buyers an advantageous opportunity for getting into the property market. Getting your foot in the property door is now a reality for many first-time buyers and with the help of FLISP, many are well on their way to owning their very own home.
What is FLISP?
The finance-linked individual subsidy programme, or FLISP, is a government-backed initiative to promote and secure first-time home ownership for lower income earners in South Africa. FLISP makes it possible for people like you to own the home you want. FLISP was introduced by the department of human settlements in 2012 and the income threshold for the programme was increased in July 2018. FLISP is like being given free money just so you can afford to buy your first home. You don’t need to pay back your FLISP subsidy at any time.
Getting your foot in the property door is now a reality for many first-time buyers and with the help of FLISP, many are well on their way to owning their very own home.
How FLISP works
FLISP provides lower and medium income earners with a substantial subsidy that can be used to purchase property. Subject to pre-approval of a home loan, FLISP subsidies can be applied for by any South African family whose household income falls between R3 501 and R22 000 per month.
Previously, the maximum threshold was set at R15 000 per month, but FLISP is now an option for many more citizens.
What can you use a FLISP subsidy for?
Applying for a bond to buy your first home can seem a terrifying prospect when you’re not a big money earner. The South African government, motivated by its desire to uplift and empower every citizen, created FLISP to enable lower and medium income earners towards claiming their stake in the property market. As a subsidy, FLISP can be used to put down a deposit on your first home or used to shorten your home loan repayment period or lower the monthly repayment amounts.
FLISP subsidy criteria
Your FLISP subsidy amount
We used the FLISP website’s subsidy calculator to work out how much you can expect to receive from your FLISP subsidy. For example, if your household’s monthly income is between:
Where to apply for a FLISP subsidy
As FLISP is a government-backed initiative, the department of human settlement administers and processes applications for a FLISP subsidy. Once you’ve been pre-approved for a home loan, apply for a FLISP subsidy at your local department of human settlement office, or call the National Housing Finance Corporation. For more information visit: www.flisp.co.za.