Flisp assists first-time home buyers
The Flisp subsidy can assist in purchase an existing residential property for the first time, purchase a vacant serviced residential stand/plot which is linked to a house-building contract via the department, or build a new house with the assistance of a builder registered with the National Home Builders Registration Council (NHBRC), on a serviced residential.
Buying a house for the first time may be challenging for several reasons.
First-time homebuyers can qualify for a government subsidy of up to R121 000.
The City of Ekurhuleni’s human settlements department and the Gauteng Provincial Government are rolling out planned and developed megacities that are completely self-sufficient in providing for housing, economic and social needs of the community.
These megacities, characterised by mixed-use housing ranging from low-cost housing and affordable rental accommodation to bonded housing, are financed by local banks.
“If you earn between R3 501 to R22 000 per month before deduction and are looking to purchase a home for the first time, you can receive a government subsidy. This is part of the Finance-Linked Individual Subsidy Programme (Flisp). Flisp is a programme intended to benefit aspiring homeowners,” said MMC for human settlement Lesiba Mpya.
He said qualifying individuals unable to secure a mortgage loan may apply for the allocation of a vacant serviced stand created through the Integrated Residential Development Programme (IRDP).
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“Depending on the applicant’s gross monthly income, their once-off Flisp subsidy qualifying amount may vary between R27 900 and R121 000.
The subsidy is used to decrease the mortgage bond and is only applicable to persons who have never been assisted by the state. It will be disbursed as a once-off subsidy,” explained Mpya.
He said Clayville Extension 45 is an example of how the Flisp programme has worked in providing housing to the gap market.
“Once the home loan is approved, a Flisp application can be discussed with your bank, financial institution or at the customer care centre – ask for the human settlements office,” said Mpya.
The Flisp subsidy can assist in purchase an existing residential property for the first time, purchase a vacant serviced residential stand/plot, which is linked to a house-building contract via the department or build a new house with the assistance of a builder registered with the National Home Builders Registration Council (NHBRC), on a serviced residential stand/ plot that you already own.
The qualification criteria to apply for a Flips subsidy
• Must be a South African citizen or hold a permanent residence permit.
• Must be 18 years of age or older, legally married or legally divorced, and of sound mind.
• Current total household income must be between R3 501 and R22 000 per month, excluding overtime and commission but includes allowances.
• Applicant or his/her spouse must not have previously derived benefits from the housing subsidy scheme or any other state-funded or assisted housing subsidy scheme which conferred benefits of ownership, leasehold, or deed of grant.
• Must not own any other residential property nor previously owned fixed residential property.
• Where the application is made for a subsidy based on a legal marriage or cohabitation arrangement, it is required that the property must be registered in the name of both spouses at the Deeds Office.• The applicant may be single but with proven financial dependents.
“This programme is put in place to assist people to decent housing and we encourage them to apply,” said Mpya.
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