FLISP (Finance Linked Individual Subsidy Programme) is a government subsidy for first-time South African homebuyers, which was first introduced in 2012. Initially, FLISP was offered as a home-loan-only option, limited to individuals earning between R1,500 – R15,000 gross monthly income.
However, as of April 2022, this rule was changed and is now available to those who earn a gross monthly income of up to R22 000 (joint/combined monthly income below R22 000) and will be available for non-mortgage housing finance facilities from the 2022/23 financial year.
Aimed at first-time buyers in the lower income bracket, your subsidy will depend on where you fall within the income bracket. For a more detailed breakdown please visit: https://flisp.co.za/
Individuals applying for FLISP must meet the following requirements:
- Must fall within the gross income bracket (gross combined household income between R3 501 and R22 000 a month)
- Must be a South African citizen with permanent residency in SA.
- Must not have received a government housing subsidy before.
- Must be married/cohabiting OR single with financial dependents.
- Must be over 18 years old.
- Must not have owned a fixed residential property before.
How Do I Apply For FLISP?
If you meet all of the requirements, you can apply for FLISP, but first you have to select and/or apply for a finance option. While you used to have to apply for a home loan (and have your application approved before applying for FLISP), this has changed, and you can now explore other alternative sources of finance to apply, these include:
- A pension or provident fund loan
- A co-operative or community-based savings scheme like a stokvel
- The Government Employees Housing Scheme
- Any other employer-assisted housing scheme
- An unsecured loan
- An instalment sale or rent-to-own agreement
We suggest you speak to your financial institution or closest municipality for help, or you can file an application with the Department of Human Settlements.
Required Documents When Applying
- 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 the transfer cost from transferring attorney.
Our Advice: The property may not be sold within a period of 8 years from the date on which the property was acquired. Click here to read the restrictive condition that is brought forward on the title deed and mortgage bond.