You don’t have to work for government to qualify for a house subsidy

IN 2005, The Department of Human Settlement introduced a Finance Linked Individual Subsidy Programme (FLISP) which aimed at helping first-time home buyers from low to medium-income households to afford a home loan.

The programme provides a subsidy to qualifying beneficiaries who have secured mortgage finance to acquire an existing house or a vacant residential-serviced stand linked to a house-construction contract.

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The subsidy is paid to your bank or financial institution in order to reduce the initial mortgage loan amount to render the monthly loan repayment instalments affordable over the loan repayment term and to make good on any shortfall between the qualifying loan amount and the total product price.

Any individual who has already purchased a property that has already been transferred into his or her name, with effect from April 1, 2012, April 1, 2014 or July 28, 2018 will also be eligible to apply for the subsidy provided that they meet the requirements of the respective policy revisions.

According to the department, the FLISP subsidy can assist you to:

• Purchase an existing residential property for the first time.
• Purchase a vacant serviced-residential stand which is linked to a house-building contract via the department.
• Build a new house with the assistance of a builder registered with the National Home Builders Registration Council (NHBRC) on a serviced-residential stand that you already own.

What are the qualification criteria to apply for a FLISP subsidy?

• The applicant must be a South African citizen or must hold a permanent residence permit.
• The applicant must be 18 years old or older or legally married or legally divorced and of sound mind.
• The applicant’s current total household income must be between R3 501 and R22 000 per month, excluding overtime and commission but includes allowances.
• The 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.
• The applicant must not own any other residential property or previously owned fixed residential property.
• Where the application is made for a subsidy on the basis of a legal marriage or cohabitation arrangement, it is required that the property must be registered in the name of both spouses in the Deeds Office.
• The applicant may be single but with proven financial dependents.

Interested applicants can also visit the Department of Human Settlements Helpdesk on 11th Floor, Eagle Building (Murchies Passage), 353–356 Dr Pixley KaSeme (former West street), Durban.