Community Empowerment

First Time Home Buyers Can Qualify for a Government Subsidy of up to R121 000

The City’s Human Settlements Department and the Gauteng Provincial Government are rolling out planned and developed mega cities that are completely self-sufficient in providing for housing, economic and social needs of the community.

These mega cities, characterised by mixed-use housing ranging from free low-cost housing, affordable rental accommodation as well as bonded housing, are financed by local banks.

If you earn between R3 501 – R22 000 per month and are looking to purchase a home, for the first time – here is what you need to know about lisp:

Finance-Linked Individual Subsidy Programme (FLISP)

Flisp is a programme intended to benefit aspiring home owners who earn a minimum salary of R3 501 and a maximum of R22 000 per month, before deduction. 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).

Depending on the applicant’s gross monthly income, their once off Flip 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. Clayville Extension 45 is an example of how the Flisp programme has worked in providing housing to the gap market.

How do I apply for the Finance Linked Individual Subsidy Programme?

Once your 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.

The Flisp subsidy can assist you to:

  • 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.
  • 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.

What is the qualification criteria to apply for a Flisp 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.
  • 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.
  • Must not own any other residential property nor 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 at the Deeds Office.
  • The applicant may be single but with proven financial dependents.