Government housing subsidy: How to own your first home

A government housing subsidy known as FLISP makes homeownership a reality for low-income (R3 501 — R22 000 per month) buyers.

Article summary

FLISP is a government housing subsidy aimed at first-time home buyers who fall within a low income bracket.
You no longer require home loan approval before applying for FLISP.
In order to qualify you must be a South African citizen with an income of between R3 501 and R22 000 per month

If you’re a first-time home buyer, you have the chance to receive a government housing subsidy via the FLISP program. This subsidy will be paid into your home loan account or your lawyer’s trust account, and can also be used as a deposit on your home loan.

The subsidy is intended to stimulate the property market and help low-income earners get a foot on the property ladder. So if you’re a young home buyer in a lower income bracket, FLISP will help you make your dream of home ownership a reality.

Do I qualify for a government housing subsidy?

First, you need to ensure you meet the criteria for FLISP. The program is aimed at South Africans who fall within a lower income bracket.

So the criteria are as follows:

Your income must range between R3501 and R22 000 per month.
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 much is the government subsidy?

The subsidy ranges from R30 001 to R130 000, depending on your income. The lower your income, the higher your subsidy.

You can check the FLISP brochure for more detail on this.

Hod do I apply for a government subsidy?

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.
An unsecured loan.
Certified copy of the bond approval / bond quotation.
An Instalment Sale Agreement or Rent-to-own Agreement.

You can apply for FLISP with the assistance of an ooba Home Loans consultant.

You’ll need to submit the following documentation 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 seven days.

Obtain a home loan before applying for FLISP

Although you no longer require home loan approval to apply for FLISP; you can elect to go that route anyway. To boost your chances of getting your home loan application approved, apply with the help of a home loan comparison service such as O-YES Home Loans. We submit your application to multiple banks, not only improving your chances of approval but of obtaining lower interest rates as well (which is like a subsidy in itself).

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.