The FLISP requirements in 2022: What you need to know

FLISP is a government subsidy for first-time homebuyers. FLISP requirements include being a South African citizen and having income within a certain range.

Article summary

FLISP is a government subsidy for first-time home buyers with low income.
To qualify for FLISP you must have an income ranging from R3501 to R22 000.
Other criteria include being a South African citizen with permanent residency, and being married or single with dependents.

The Finance Linked Individual Subsidy Programme (FLISP) was introduced by the South African government to assist first-time home buyers in getting onto the property ladder.

Thanks to FLISP, home ownership need not be a distant dream for those with lower incomes. The more people own property, the better for the country as a whole, so FLISP helps stimulate the South African economy.

FLISP requirements: What must your income be?

FLISP is aimed at home buyers in the lower income bracket. Your income must range between R3501 and R22 000 per month.

Your subsidy depends on where your income falls within that bracket. The lower your income, the higher your subsidy, with the highest possible subsidy being R130 000 and the lowest being R30 001.

That’s a sizeable amount that you can put towards your home loan repayments. For a more detailed breakdown of the subsidies, take a look at the FLISP brochure.

Other FLISP requirements

You must be a South African citizen with permanent residency in South Africa.
You must not have received a government housing subsidy before.
You must be married or cohabiting OR single with financial dependents.
You must be over 18 years old.
You must not have owned a fixed residential property before.

How do I apply for FLISP?

If you meet all the above requirements, you can apply for a government subsidy, but you must first apply for a home loan.

You used to have to apply for a home loan and have the application approved before you could apply for FLISP, but as of April 2022, this is no longer necessary. You can now use other sources of finance to apply, including:

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.
Certified copy of the deed of sale.
An unsecured loan.
An Instalment Sale Agreement or Rent-to-own Agreement.

You can then discuss an application with your financial institution, contact the nearest municipality for advice, or submit an application form at the Department of Human Settlements.

You will require the following documents along with your FLISP application form:

Certified copies of identity documents (IDs).
Certified copies of dependents’ birth certificates.
Certified copy of marriage certificate/ Final order of divorce.
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.

The application process usually takes 7 days.

Improve your chances of home loan approval

Although you no longer require home loan approval to apply for FLISP; if you do choose to go that route, a home loan comparison service such as O-YES Home Loans can significantly boost your chances by submitting your application to multiple banks. Some may be more likely to grant your home loan than others, and out of the ones that approve the application, their interest rates will vary.

So we give you the best chance of not only securing home loan approval, but acquiring favourable interest rates.

We also offer a range of tools that can make the home buying process easier. Start with our Bond Calculator, then use our Bond Indicator to determine what you can afford. Finally, when you’re ready, you can apply for a home loan.