The Finance Linked Individual Subsidy Programme FLISP programme is a housing subsidy for first-time home buyers to assist with purchasing a home. The subsidy is paid to your bank or financial institution and will reduce your monthly loan instalments, making it more affordable to purchase a home
Who qualifies for Flisp subsidy?
Income: Your household must earn more than R3 500 but less than R22 000 a month. This is your household’s income (both you and your spouse’s income, or any relative you apply for a home loan with). It refers to your gross salary–the total amount you receive before taking away taxes or deductions.
Dependents: You must be living with a partner (either married or habitually cohabiting) or living with financial dependents. Financial dependents include: children, grandchildren, parents, grandparents, sisters or brothers under 18, and unwell extended family members.
A house to buy: You need to find a house to buy (either a new house or an existing house), and the seller needs to have a title deed. This house can cost any amount that you can afford (previously the maximum property value for the house was set at R300 000 but that cap was removed in 2014). This Programme may be used to acquire any formal residential property (including previously housing subsidy financed properties) on condition that the households have successfully applied for mortgage loans to finance the purchase.
The house can part of a new housing development: some developers already have deals with NHFC which makes it easier to access FLISP–you can contact the NHFC for more information. Or you can use the FLISP to purchase a house on the resale market (an old house that is being resold). If you can’t buy a house, FLISP can be used to build a house on a vacant stand that you already own.
Previously, FLISP beneficiaries were not allowed to sell their houses until 8 years after they had purchased their house. However in 2018 a decision was taken to remove this sales restriction.
How do I submit a Flisp form?
- FLISP applications should be emailed to firstname.lastname@example.org.
- NHFC receives emailed FLISP Application Forms and the Application Supporting Documents from the FLISP Trained Developers, Financial Institutions, Estate Agents, Human Settlement Provincial & Regional Offices, Municipal Offices or directly from the applicant.