Thread by @Banker__X, IMPORTANT! If you're a first time South African home buyer earning between [...]

IMPORTANT! If you& #39;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& #39;s called the Finance Linked Individual Subsidy Programme (FLISP) [Thread]

1. Why was FLISP introduced?

It& #39;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& #39;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& #39;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">https://www.nhfc.co.za/images/pd... form can be accessed from the NHFC website here:
https://www.nhfc.co.za/index.php/Products-and-Services/application-process-flow.html

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

Additional">https://www.nhfc.co.za/index.php... reading:
https://www.nhfc.co.za/images/FLISP-Brochure-UPDATED.PDF">https://www.nhfc.co.za/images/FL...

9. Are banks aware of FLISP?

Most accredited banks know about FLISP.

Make sure you& #39;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.
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