How To Save R120k On Your Property Purchase As A First-Time Buyer With FLISP
First-time homebuyers are missing a huge opportunity to save up to R120 000 on their property purchase.
Most buyers are unaware of the housing subsidy that is currently available to buyers known as the Finance Linked Individual Subsidy Programme or FLISP for short.
In July 2018 the Department of Human Settlements reviewed and updated the minimum requirements and total benefit of the subsidy to include buyers who earn up R22 000 pm month. Buyers can now qualify for up to R121 626.
What Is FLISP?
It is a once-off subsidy provided by the Department of Human Settlement to assist first-time qualifying home buyers.
Part of the billion Rand that has been allocated to housing subsidies – will have a significant effect on the property market.
The objective is to reduce the bond amount in order to render the monthly repayment affordable.
Home buyers can qualify for a government housing subsidy of up to R121 626.
How Does It Work?
Potential buyers must first apply for a home loan and once the bond has been approved you can apply for the subsidy benefit.
It helps to reduce the initial home loan amount and/or it can help to cover the difference between the bond amount approved and the house price.
The subsidies are available on a sliding scale, which means that a person who earns R3 501 per month can qualify for a subsidy of R121 626.
A person who earns R15 000 can qualify for a subsidy of R63 000, and a person who earns R22 000 can qualify for R 27 960.
What Does It Cost?
The FLISP is free money from the government to buy your own home. It is a subsidy benefit that you do not need to repay ever.
The minimum requirement to qualify for this subsidy are as follows:
- First-time home buyers
- RSA Citizens or Permanent Residents
- Over 18 years old
- An Approved Home loan – your bank or financial institution must have already approved you for a home loan
- Monthly income up R22 000
- The applicant must not have benefited from a prev state or gov subsidy. If you live in an RDP house, you cannot receive a FLISP subsidy.
- Married, cohabiting, or be a single person with a dependent
The FLISP application can be made within 24 months of the date of registration of the property.
Read More: Home Loans For Low-Income Earners
Need More Help?
For more assistance with regards to applying for Home Loan finance contact one of our consultants.
Complete An Application Form Online
or Email: email@example.com and Ph: 073 393 1216