With interest rates at multi year lows, affordability ceiling levels declining and bank approvals rising, FLISP might just be what is needed for first time home buyers on the cusp of buying their first home. In fact the qualifying previous average home loan amount of R680 000 has thanks to lower interest rates increased to a R870 000 - but it all depends on the buyer's ability to manage their debt.
What is FLISP?
The Finance Linked Individual Subsidy Programme (FLISP) is a housing subsidy programme introduced by government for first-time home buyers to help them to buy or to build a home. The subsidy is paid into the bank or financial institution granting the bond and results in a reduction of the home buyer’s monthly loan instalments, making it more affordable to purchase a home.
As per the FLSIP brochure households with an income of between R3 501 to R22 000 may qualify for the FLISP subsidy if they meet the following criteria.
- You earn between R3 501 to R22 000.
- You are a South African citizen or have permanent residency in South Africa.
- You have not received a government housing subsidy before.
- You have not owned fixed residential property before.
- You are competent to contract - over 18 years.
- You are married or cohabiting.
- You are single with financial dependents.
What can successful applicants use the FLSIP for?
It can be used to:
- Purchase an existing residential property for the first time;
- Purchase a vacant serviced residential stand (ie. plot) which is linked to house-building contracts. Builders must be 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 (ie. plot) that applicants already own.
What is the subsidy amount that one can qualify for?
- The subsidy amount depends on the income of the applicant and ranges between R27 960 – R121 626.
- Download the Finance Linked Individual Subsidy Programme (FLISP) Brochure to view the sliding scale.