Flisp Subsidy - Helping first-time buyers to purchase a home

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How do I get a government housing subsidy?


You can get a government housing subsidy through FLISP (Finance Linked Individual Subsidy Programme). FLISP subsidises the home loans for low to middle-income earners.

You must meet the following criteria for FLISP:

  • Your income must range between R3501 and R22 000 per month.
  • You must be a South African citizen with permanent residency in South Africa.
  • You must not have received a government housing subsidy before.
  • You must be married or cohabiting OR single with financial dependents.
  • You must be over 18 years old.
  • You must not have owned a fixed residential property before.



If you meet the above criteria, you can apply through your financial institution or with the assistance of a home loan bond originator

The subsidy depends on your income. The lower your income, the higher the subsidy, which ranges from R30 001 to R130 000, depending on your income. The lower your income, the higher the subsidy that will be paid by the government toward your home loan, lowering your monthly repayments in the process. Where you fall on this bracket then determines the size of your subsidy. 




You used to have to apply for a home loan and have the application approved before you could apply for FLISP, but as of April 2022, this is no longer necessary. Applicants can access this subsidy using one of the following finance options:

FINANCE OPTIONSREQUIREMENTS
Mortgage LoanAn approved home loan. You can also apply retrospectively, i.e. if you purchased a residential property and it has been transferred into your name not longer than 6 months ago.
No fee or no interest
loan		An interest free loan from a lender e.g. stokvel, an employer, family member, etc.
Pension-backed loanA loan provided by a financial institution secured by your pension savings. Your pension fund and the financial institution must have entered into an arrangement.
Rent to Buy / Deferred ownershipAgreement with your Landlord to purchase the  property you have been renting. You should only apply for the subsidy at the point of purchase and you have secured the necessary finance to make the purchase. 
No financial
Contribution Required		If the subsidy amount that you qualify for is equal to, or greater than, the purchase price of the property. The subsidy can also be used to cover transfer, bond registration costs, or a shortfall on the bond.
CashFrom your own savings

This subsidy can be used to :

  • Buy an existing house / apartment. 
  • Buy a serviced residential site (i.e. plot with access to basic services - Applicants must be registered on the Western Cape Housing Demand Database)
  • Build a house on serviced residential site, if the site was not acquired through a government housing subsidy in teh past. Note that your builder must be registered with the National Home Builders Registration Council (NHBRC) to ensure building and safety standards.
You can check the FLISP brochure for more detailed information on the income and corresponding subsidy.



How do I apply for the Finance Linked Individual Subsidy Programme (FLISP) / Help Me Buy a Home?


Once you have selected or secured one of the Finance Options, contact the Department of Human Settlements to complete the application form.  You can also contact your nearest municipality regarding this programme.

The following documents are required, together with your completed application:

  • 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, if applicable
  • Certified copy of the bond approval/ bond quotation, if applicable   
  • Original/ certified copy of the statement of transfer cost from transferring attorney, if applicable

What is the subsidy amount that you can qualify for?

Download the brochure to view the sliding scale to determine the subsidy for different income brackets.

Who to contact to check the status of your subsidy application?

You can contact the Department’s Helpdesk directly for further assistance or details regarding the status of your subsidy application. You can contact them telephonically or by e-mail.

Download the Finance Linked Individual Subsidy Programme (FLISP) Brochure.

Download the FLISP Application Form.

 

Where can I find more information?

Department of Human Settlements
Ground Floor, ISM Building
27 Wale Street
Cape Town

 

Helpdesk

Call: 021 483 6488 / 021 483 0623 / 021 483 0611 / 021 483 3112 / 021 483 2060
E-mail: Human.Settlements@westerncape.gov.za

 

Office Hours

Mondays to Fridays from 07:30 - 15:00


More info/Need assistance?

wa.me/27736046454


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