The Finance Linked Individual Subsidy Programme (FLISP) programme is a housing subsidy for first-time home buyers to assist with purchasing a home. The subsidy is paid directly to the conveyancing attorney or financial institution and can be used as a deposit to buy a home, or to pay such into an existing home loan and reduce the monthly instalments.
WHEN CAN I APPLY?
- To apply for FLISP, you must be in the process of purchasing a property. You can also apply if the property was registered in your name in the past 12 months. Any applications after this window period are currently not considered.
- Once you’ve received a home loan from a bank, the following documents are required, together with the completed FLISP application:
- Certified copies of identity documents (IDs)
- Certified copies of dependents’ birth certificates
- Certified copy of marriage certificate/ Final order of divorce/Death Certificate
- 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 transfer cost from transferring attorney
- Certified Copy of Home Loan Approval (if Applicable)
- Offer to Purchase
WHAT IS IT USED FOR?
The subsidy amount depends on your income and ranges between R30,000 – R130 000. There is a sliding scale to determine the subsidy for different income brackets.
If you qualify for the FLISP subsidy – what can it be used for?
The FLISP subsidy assists you to:
- Purchase an existing residential property for the first time;
- Use for Transfer/Bond Costs;
- Buy a subsidy house, in a development;
- Use for a deposit;
- Purchase a vacant serviced residential stand (i.e. plot) linked to house-building contracts. Only use builders registered with the National Home Builders Registration Council (NHBRC) or
- Build a new house with the assistance of a builder registered with the NHBRC on a serviced residential stand (i.e. plot) that you already own.
REQUIREMENTS FOR FLISP
- Earn either a single or joint gross monthly household income of between R3 501 to R22 000
- Be a first time home buyer
- Be over the age of 18 years
- Have financial dependants
- Have never benefitted from any Government Housing Subsidy Scheme before
- Have an AIP (Approval in Principle) for a home loan from an accredited South African financial institution.
LATEST ADJUSTMENTS TO THE REGULATIONS
As from 1 April 2022, persons who in the past could not qualify for FLISP due to them not qualifying for a home loan or mortgage will now be able to utilise other sources of finance to acquire a property.
Amongst others, residents with a household income of R 3 501 – R 22 000 per month will be able to access FLISP through:
- the beneficiary’s pension/provident fund loan
- a co-operative or community-based savings scheme, i.e. stokvel
- the Government Employees Housing Scheme
- any other Employer-Assisted Housing Scheme
- an unsecured loan
- an Instalment Sale Agreement or Rent-to-own Agreement
Please contact one of our conveyancers to discuss this is more details on (021) 943 5111.