The South African government is allowing concessions for citizens to purchase homes with assistance from the Finance Linked Individual Subsidy Programme (FLISP).
Access to social housing has always been a pressing issue in South Africa, with the backlog of required housing units having increased from roughly 1.2 million units in 1994, to over 2.1 million units in just over two decades. Despite the progress in supplying quality housing since 1994; with roughly 3.7 million subsidised housing opportunities offered to roughly 12.5 million people; there is still a strong demand for affordable housing opportunities.
The Finance Linked Individual Subsidy Programme (FLISP), offers housing subsidies for individuals who are considered too well-off to apply for RDP subsidies, but do not earn enough to easily qualify for home loans.
Are you wanting to purchase your first home?
The Finance Linked Individual Subsidy Programme (FLISP) is available to first time home buyers.
- To qualify, your income must be between R3 501 and R15 000 per month;
- The subsidy is R20 000 for those earning R15 000 pm.
- If you earn less, the subsidy will be more.
For example, if your monthly earnings are R3 501, you will receive a subsidy of R87 000. If your monthly earnings are R6 000, you will receive a subsidy of R73 000.
Before you can apply for a FLISP subsidy, your home loan must have been approved by a banking institution.
This money can help you cover your deposit…
Due to the fact that the subsidy money is paid upfront, the individual can use the subsidy either to reduce the home loan repayments, build an extension to the home, or buy a larger home. If used to reduce the home loan, the total saving in interest could be up to R100 000.
For assistance in applying for a FLISP subsidy, visit the Finance Linked Individual Subsidy Programme (FLISP) website.
Note – there are a number of requirements that must be adhered to in order to seek assistance from FLISP, as well as a few nominal charges that accompany the process.
One particularly interesting requirement states that applicants must have a dependent if they are single. Married couples do not have to produce a dependent. Surely this is a tad anti-constitutional as this requirement seems to be based on marital status.
What happens if you, a resident of the Western Cape, who had bought your house six months ago, is only hearing this news for the first time?
If you are an existing home owner, you can still apply for a FLISP subsidy. You will need an approved home loan, and must apply for the subsidy within 12 months of taking ownership.