FLISP application form: How to apply for subsidy housing in South Africa
What is FLISP? Finance Linked Individual Subsidy Programme (FLISP), currently known as First Home Finance, is a South African government initiative aimed at assisting low to moderate-income earners' own homes. The programme subsidises eligible individuals to help them cover their house costs. Here is how you can fill the FLISP application form and get financial assistance with your home purchase.
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The FLISP housing subsidy is meant to make homeownership more accessible for individuals who might not have the financial means to afford a home without assistance. It is intended to reduce the initial mortgage loan amount required to purchase the home. Below is a step-by-step on how to apply for a FLISP house subsidy and where to get the FLISP application.
How to apply for FLISP subsidy in 2023?
The Department of Human Settlement administers and processes applications for First Home Finance subsidies. Apply for the subsidy at your local Human Settlement office once you are pre-approved for a home loan. You can apply online via the First Home Finance Application portal or call 010 085 2199. Click here to download the 2023 subsidy housing application form.
FLISP application 2023: What you need?
Aside from your application form, you will need the following:
- Certified copies of identity documents
- Certified copy of marriage certificate or final order of divorce
- Certified copies of dependents' birth certificates
- Original payslip or affidavit confirming unemployment
- Certified copy of the bond approval
- Original copy of the statement of transfer cost from transferring attorney
- Spouses death certificate (Where applicable
- Proof of sources of income
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Eligibility for FLISP housing
You must meet the following eligibility criteria to qualify for the housing subsidy in South Africa:
- Your gross household income is between R3501 and R22000 per month.
- You are over 18 years and competent to contract.
- You have not owned fixed residential property before.
- You have not received a government housing subsidy before.
- You are married or cohabiting or single with financial dependents.
- You are a South African citizen or have a permanent residency permit.
Options when choosing a house to buy
You have three options for acquiring a FLISP housing subsidy:
- Buy an existing, new or old residential property, or
- Build a home on a self-owned serviced residential site, or
- Buy a vacant serviced residential site linked to a homebuilder registered with the National Home Builders Registration Council (NHBRC) to ensure building and safety standards.
How long does the FLISP application process take?
The process takes about seven working days from submission of the application form. The FLISP department is required to inform you of the outcomes by 21 days from the application.
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Factors affecting the FLISP acquirement
The exact amount of the FLISP housing subsidy you can qualify for depends on various factors, which can vary over time and by region.
- Income: The lower your income, the higher the potential subsidy amount.
- Property cost: The lower the property price, the higher the potential subsidy relative to the property's worth.
- Family size: Larger households may be eligible for higher subsidies.
- Affordability: The amount of the subsidy will be determined in a way that helps bridge the gap between your available funds and the cost of the property.
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FLISP benefits
The Finance Linked Individual Subsidy Programme (FLISP) in South Africa offers several benefits to eligible individuals and families looking to purchase a home. Here are some of the key benefits:
- Increased affordability: The subsidy helps bridge the financial gap between what individuals or families can afford and the cost of purchasing a home.
- Reduced mortgage costs: The subsidy is applied to the property's purchase price, which reduces the amount of the mortgage loan that needs to be financed. This can result in lower monthly mortgage payments and overall borrowing costs.
- Assistance for first-time homebuyers: FLISP is designed to help first-time homebuyers enter the housing market.
- Stability and security: FLISP helps individuals and families achieve this goal, allowing them to establish roots in their homes and communities.
- Wealth accumulation: Homeownership can be a form of wealth accumulation over time, as the property's value may appreciate.
- Long-term savings: Owning a home can lead to long-term savings compared to renting, as homeowners build equity and invest in an asset they can appreciate.
- Customisation and freedom: Homeownership allows individuals and families to customise their living space, make improvements, and have greater control over their living environment.
- Financial empowerment: The program empowers individuals and families by helping them achieve the goal of homeownership despite financial constraints, improving their overall economic well-being.
- Access to better housing options: FLISP helps individuals and families access better quality housing options than they might have been able to afford without the subsidy.
Above is everything you need to know about the FLISP application form and how to apply for subsidy housing in South Africa. Choosing a house is a significant decision, and it is essential to take your time, do thorough research, and consider working with a real estate agent who can provide guidance and help you navigate the process.
DISCLAIMER: This article is not sponsored by any third party. It is intended for general informational purposes only and does not address individual circumstances. It is not a substitute for professional advice or help and should not be relied on to make decisions of any kind. Any action you take upon the information presented in this article is strictly at your own risk and responsibility!
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