Further interest rate hikes are expected for residential properties in 2023. In addition, a general inflation of 5.6% on average is also expected for South Africa. These factors make it difficult for citizens to even dream of their own house. FLISP subsidy is a source of hope for low-income, first-time house buyers during such hard times.
This article will cover if and how you can apply for the FLISP Subsidy.
What does FLISP stand for?
FLISP stands for Finance Linked Individual Subsidy Programme. This program offers home loan subsidies between R 30,000 to R 130,000. The subsidy is only available for those citizens who haven’t benefited from a government housing subsidy before.
However, government employees who’ve benefited from the Government Employees Housing Subsidy Scheme (GEHS) also qualify for FLISP. Public servants are required to enrol with the National GEHS Administrator before applying for the FLISP subsidy.
What is FLISP Housing Subsidy?
FLISP is a government housing subsidy that allows low-income South Africans to own affordable residential property. By helping South Africans attain their dreams of owning a home, FLISP also aims to help stimulate the South African economy.
The subsidy has been specially designed for citizens who aren't poor enough to qualify for a free housing subsidy but are struggling to buy their own houses. Their income is also insufficient to qualify for home loans from lenders and independent banks.
Who qualifies for FLISP Government Subsidy?
To qualify for the FLISP government subsidy, you must be a permanent South African resident. This subsidy is only for households with a gross income between R3,501 to R22,000.
The amount of FLISP housing subsidy you get depends on where your income lies in this bracket. The less the income, the more amount you get through the subsidy.
Other Requirements - Candidates must be a South African citizen or a permanent resident with a legal permit. - 18 years of age is mandatory. - Applicants must be competent to enter a legal contract. - You must have ‘Approval in Principle’ from a registered South African financial institution. - You’ve never benefited from a government subsidy before (except for the conditions discussed above) - Haven’t owned any residential property before - You’re married, cohabiting, or single with dependents.
How FLISP works
First, you’ll need to scout a home to purchase. Then choose between the following financing options to apply for the subsidy:
- Mortgage loan
- Pension secured loan
- Rent-to-buy agreement
- No interest loan
- Cash
- Unsecured Loan
Then, contact The Department of Human Settlement or the nearest relevant municipality to complete your application form.
Required Documents
To complete your application, you’ll be required to submit the following documents:
- Certified copies of ID
- Certified copies of the dependents’ birth certificates
- Original payslip/ Proof of unemployment/ Proof of social grant
- Certified copies of marriage/divorce certificates
- Certified copy of bond approval
- Original or copy of transferring cost from transferring attorney
- Certified copy of sale deed/ offer to purchase
- Certified copy of bond approval or bond quotation
After completing the form with these documents, you’ll have to wait for your application to be approved.
How long does it take for the FLISP subsidy to be approved?
The NHFC (National Housing Finance Corporation) will examine your application and decide if you fit the criteria for the subsidy. The application is usually approved in 7 days.
The maximum time the NHFC can take to assess your application is 21 days.
If you need money for the deposit, FLISP will pay within five business days after you lodge your deed at the Deed Office. If you don’t need money for the deposit, you’ll get paid after the deed is registered.
How can UG Homes help you with FLISP?
FLISP can be just the opportunity to buy your home at affordable rates. However, you must have the proper guidance to increase your chances of getting the subsidy.
UG homes can help you with your FLISP application and find affordable homes. Once you contact our sales agent, we'll discuss your budget and show you a wide range of houses you can purchase. After you select a house to purchase, our expert team will guide you through your FLISP application process. As soon as the application is approved, we'll finalise all the paperwork for your house.
Contact us at UG Homes to discuss the best action plan to ensure your FLISP application gets approved.
We are dedicated to finding your family their perfect home and helping you with our years of experience regarding the FLISP application.