IMPORTANT! If you're a first time South African home buyer earning between R3,501 & R22,000 a month you could be eligible for a government subsidy for over R120,000

It's called the Finance Linked Individual Subsidy Programme (FLISP) [Thread]

1. Why was FLISP introduced?

It's aimed at filling the affordability "gap". Your income might be too high to qualify for government "free housing" but at this salary you may still find it tricky to repay a home loan.

The subsidy makes monthly payments more affordable.

2. Do I qualify for FLISP?

- First time home buyer
- Must be a South African citizen
- Older than 18
- Have an approval (in principle) for a home loan
- Must have financial dependents
- Must never have benefitted from a government housing subsidy scheme before

3. How much can I expect to receive?

It works on a sliding scale. The more you earn, the lower the subsidy. Here is the subsidy for each salary band:

If you earn between R3,501 & R3,700 your subsidy is R121,626

If you earn between R21,801 & R22,000 your subsidy is R27,690

4. What types of property can I use FLISP for?

The subsidy can be used to finance a number of different property types. You can:

- Buy an existing (new or old) residential property
- Buy a vacant serviced residential-stand
- Build a residential property

5. What if I already qualify for the full amount of the home loan from the bank?

If you qualify for the full amount of the home loan, FLISP can be used as a deposit to reduce your loan with the bank.

Here's a worked example from the National Housing Finance Corporation (NHFC).

6. What if I need to qualify for a more expensive house?

Here FLISP will pay a top-up payment to get you up to the value of the home loan you are aiming to get.

The subsidy can be used to pay a deposit (if you qualify) or top you up to the loan amount (if you don't qualify)

7. How do timelines work? What gets submitted first?

- Put in an offer to purchase & submit FLISP application
- Apply for bank loan
- If loan is approved, FLISP application is processed
- FLISP will say APPROVE/ NOT APPROVED
- The subsidy is paid directly into relevant account

8. Where can I apply?

Here is a direct link to the FLISP application form:
https://www.nhfc.co.za/images/pdf/FLISP-Application-Form.pdf

This form can be accessed from the NHFC website here:
https://www.nhfc.co.za/index.php/Products-and-Services/application-process-flow.html

All FAQs answered here:
https://www.nhfc.co.za/index.php/FLISP/faq.html

Additional reading:
https://www.nhfc.co.za/images/FLISP-Brochure-UPDATED.PDF

9. Are banks aware of FLISP?

Most accredited banks know about FLISP.

Make sure you're aware of how the subsidy amount you qualify for so you can let the bank know you submitted an application & this can help your negotiations in getting your home loan over the line

10. Do I have to repay the FLISP subsidy?

No, you do not repay this at any point.

Shout-out for making it to the end of the thread.
Have a blessed Sunday . Here's to rich success in finding your crib - we're here to share the cheat codes.

Feel free to join the Telegram channel for more BankerX: https://t.me/BankerX