The Finance Linked Individual Subsidy Programme (FLISP) is a subsidy established by the South African government to provide the poor and the low to middle-income households with access to adequate housing. The subsidy is for first-time home buyers-it is paid to the financial institution which is financing your home loan, the purpose of the subsidy is to reduce your monthly loan installments, making it more affordable to purchase a home.
How does it work?
FLISP was developed to enable first-time home-ownership to households in the affordable or gap market, thus, people who earn between R3 501 and R22 000 per month. Individuals in these salary scopes have been recorded to find it hard to qualify for housing finance. Their income is often regarded as low for a home loan but too high to qualify for the government free-house subsidy scheme.
To qualify, a buyer must be a South African citizen with a financial dependent and must have obtained an approved home loan. The subsidy is linked to the gross combined household income and works on a sliding scale according to the income of the buyer. The maximum subsidy amount is R 121 626.00, and the minimum subsidy amount is R27 960.00.
The subsidy is disbursed as a once-off payment towards the repayment of the bond, and it attaches to the beneficiary and not to the property. It may be used to buy new or old residential property, buy a vacant serviced residential-stand, linked to an NHBRC registered homebuilder contract; or to build property on a self-owned serviced residential stand, through an NHBRC registered homebuilder.
How to apply for a FLISP
Step 1: Find your home
Step 2: Apply for finance with a financial institution
Step 3. Apply for FLISP
For more information visit the NHFC website on: https://www.nhfc.co.za/index.php/Products-and-Services/who-qualifies.html
Email NHFC on: info@nhfc.co.za
Call: (011) 644 9800
