Buying your first home may seem like a dream, especially if you’re not earning a big salary. But that’s changing, and it’s all thanks to FLISP.


What is FLISP?

A government-backed initiative that seeks to promote and secure first-time homeownership for lower-income earners in South Africa, FLISP makes it possible for people like you to own the home you want. The Finance Linked Individual Subsidy Programme (FLISP) was introduced by the Department of Human Settlements in 2012 and, in July 2018, the applicable income threshold for the programme was increased.


How FLISP works…

FLISP provides lower and medium-income earners with a substantial subsidy, that can be used to purchase the 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 R3501 and R22000 per month. Previously, the maximum threshold was set at R15000 per month, but thanks to a change in legislation and additional budgetary commitments made by the South African government in July 2018, FLISP is now an option for many more citizens.


What you can use a FLISP subsidy for?

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

If your family’s monthly income falls between R3501 and R22000 per month, you may apply for a FLISP subsidy. There are other qualifying criteria, so bear these in mind when you want to apply for a FLISP subsidy:

● You must be a South African citizen, over the age of 18, and you must be married, cohabiting, or be a single person with a dependent. FLISP aims to enable families to own their own homes.

● Your bank or financial institution must have already approved you for a home loan. You can’t apply for a FLISP subsidy from the government until you have been approved for a home loan. Of course, applying for a home loan means you’ll need to be credit checked, and agree to all the terms and conditions as set out by your financial institution.

● Your household income will be analysed in your application for a FLISP subsidy. Your total household income must not exceed R22000 per month.

● You cannot have previously benefited from a housing subsidy or government housing programme. For example, if you live in an RDP house, you cannot receive a FLISP subsidy.

● FLISP is a one-time payment subsidy. You cannot apply for a second FLISP subsidy when you want to purchase a second home.


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