01 Sep Can You Use FLISP to Build a House?

Yes. FLISP, now officially First Home Finance (FHF), isn’t only for buying an existing home. If you’d rather build than buy, the subsidy can also go towards a new build, provided you follow a specific route and use a registered builder. Here’s how it works if building is the path you want to take.

Your Two Options for Building

There are two ways to use FLISP for a new build. The first is buying a vacant, serviced residential stand that’s linked to a contract with an NHBRC-registered home builder, where the stand and the build are packaged together.

The second is building on serviced land you already own and hold the title deed for. If that second option applies to you, we’ve covered the nuances of qualifying with existing land in a dedicated post on owning land and FLISP, since the rules differ slightly from a standard purchase.

What the Subsidy Covers When You Build

The subsidy works the same way whether you’re buying or building: it’s a once-off, non-repayable payment that reduces the amount you need to finance.

For a build, that could mean lowering your building loan amount, covering part of the construction cost, or contributing towards the land and registration costs if you’re buying a serviced stand.

It’s never paid to you directly. It’s paid to your bank, bond originator, or the relevant party managing your build.

Building-Specific Requirements

Building comes with a few extra conditions that buying an existing home doesn’t:

• Your builder must be registered with the NHBRC (National Home Builders Registration Council). If they aren’t, your application won’t be approved, no exceptions.
• The stand must be serviced, meaning it already has access to water, electricity, and sewage infrastructure. Raw, unserviced land doesn’t qualify.
• You’ll need approved building plans and a signed contract with your registered builder, which takes the place of the standard Offer to Purchase used for existing homes.
• If you already own the land, you’ll need to show proof that it’s registered in your name before the application can proceed.

Do You Still Need a Home Loan?

No. Just as with buying an existing home, you don’t need an approved home loan before applying for FLISP to build. The subsidy can be combined with savings, a pension-backed loan, a stokvel, or inherited funds, as long as your building contract and plans are in place. To check you meet the basic requirements before going further, review the full FLISP qualifying criteria.

How Much Could You Get?

The subsidy amount for a build is calculated the same way as for a purchase, based on your household income. To see how much FLISP subsidy you could qualify for, it’s worth reading up on the income bands before you commit to a builder or a stand, so you know roughly what the subsidy will contribute towards your total build cost.

Getting Started

If you’ve found a registered builder and serviced stand, or already own land you’d like to build on, the next step is getting your application moving. Our guide to applying for FLISP online walks through the process, and our FLISP FAQ page covers more of the questions we’re asked most often.

FirstStep Housing can also confirm whether your chosen builder is properly NHBRC-registered before you sign anything.

For official information, you can refer to the National Housing Finance Corporation (NHFC), which administers First Home Finance nationally, and the Property Practitioners Regulatory Authority (PPRA), which regulates property transactions in South Africa.

Ready to Start Building?

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