FLISP stands for The Finance Linked Individual Subsidy Program. It is a government housing subsidy designed to make owning your first home more affordable.
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.
FLISP subsidy is offered by the South African government through the Department of Human Settlements. It’s government’s way of trying to encourage home ownership amongst South African’s low-income earners.
The purpose of this article, is to answer a few questions you might have in connection with FLISP subsidy and show you how to apply for it.
Let’s get started.
How Much is the FLISP Subsidy?
The once-off financial assistance for qualifying beneficiaries ranges from R27 960 to R121 626, depending on the level of household income.
This can be used as a deposit on a home or as a lump sum payment into the bond account to reduce monthly instalments.
Who Qualifies for FLISP Subsidy?
The applicants must have been approved for a home loan by an accredited banking institution or a non-bank financial institution.
In addition, to qualify you need to meet the following criteria:
- A first-time home buyer, with a household income between R 3 501 and R 22 000 per month.
- Approved for a home loan by a lender like SA Home Loans or Absa Home Loans for example, and have a letter confirming your approval.
- Over the age of 18 years and legally competent to enter into a contract.
- A South African citizen with a valid ID or a permanent resident with a valid permit.
- A first-time applicant that has not benefited from a Government Housing Subsidy Scheme before.
What are the documents required?
The following CERTIFIED COPIES are required as supporting documents when applying for FLISP:
- RSA bar-coded Identity Document (ID)
- Bar-coded Permanent Residence Permit (where applicable)
- Birth Certificates/RSA ID’s of all financial dependants (where applicable)
- Proof of Foster Children Guardianship (where applicable)
- Marriage Certificate, Civil Union Certificate or Cohabiting Affidavit*, Proof of Partnership (applicable)
- Divorce Settlement (where applicable)
- Spouse’s Death Certificate (where applicable)
- Proof of Monthly Income
- Home Loan Approval in Principle/Grant letter from an accredited Lender
- Agreement of sale for the residential property
- Building Contract and Approved Building Plan (where applicable)
FLISP Subsidy Application
To apply for a subsidy, follow the following steps
- Apply for a home loan with an accredited home loan provider.
- Once approved, a letter of acceptance will be issued to you.
- Submit your FLISP grant paperwork together with your home loan approval to the NHFC (National Housing Finance Corporation) or Provincial Department of Human Settlements.
- After your FLISP application is approved, funds are paid to transferring attorneys or your financial institution.
Application forms can be obtained from the NHFC website. Click here to access the FLISP application form.
Once you’ve completed your application, you should email it to firstname.lastname@example.org for processing.
What to do with the subsidy?
Qualifying applicants may use the subsidy to do one of the following:
- buy an existing, new or old, residential property;
- buy a vacant serviced residential stand, linked to an NHBRC registered homebuilder contract; OR
- build a residential property on a self-owned serviced residential stand, or tribal stand (PTO) through an NHBRC registered homebuilder.
Do you have to pay back the subsidy?
No, you’ll never be asked to pay back the subsidy. It is covered by government budget.
Can I still get the subsidy if my home loan has been declined?
Unfortunately, no! The only way of getting the subsidy is if you have an approved home loan or approval in principle.
How Long Does FLISP Take to Pay out?
It takes the NHFC about 7days to process your subsidy application.
That is, if you count from the point of receiving a fully completed application form with attachments of all required supporting documents (excluding your home loan application with the bank).
If you meet the qualifying criteria apply for your subsidy and save yourself some money.
The government was calling for more South Africans to apply for the subsidy in April 2021.
Furthermore, at that time the available budget for the financial year was R461 million!
FLISP Contact Details
For more information on the subsidy, accredited development projects, nearest contact office and/or subsidy application status contact FLISP Information Centres contact
Telephone: 0860 011 011 / 011 644 9800
The Isle of Houghton
Old Trafford 3
11 Boundary Road