07 May First-Home Bond Costs FLISP Can Help You Cover

Most first-time buyers focus on the purchase price of a home when budgeting for their first property, but the costs associated with securing and registering a home loan can add up quickly. Understanding the full picture of what you will need to pay gives you a significant advantage, and knowing how FLISP fits into that picture can make the entire process far more manageable.

Here is a clear breakdown of the first-home bond costs FLISP can help you cover, and how to make the most of the subsidy available to you.

The True Cost of Buying Your First Home

The purchase price is only part of what you will spend when buying property for the first time. There are several additional costs that must be settled before or during the transfer and registration process, and first-time buyers are often caught off guard by these expenses.

The main costs to plan for include bond registration costs, transfer costs, transfer duty, and the deposit, though not all of these apply in every transaction.

Bond Registration Costs

When your home loan is approved and registered against the property, an attorney is appointed to handle the registration. Bond registration costs are calculated on a sliding scale based on the loan amount, and they are charged by the bond registration attorney.

These costs are paid to the Deeds Office and to the attorney handling the registration, and they are a non-negotiable part of the home loan process.

For first-time buyers using FLISP, the subsidy is applied as a lump sum reduction to your approved bond amount. A smaller outstanding loan amount can, in some cases, influence the overall cost structure of your bond, making it one of the ways FLISP supports first-time buyers beyond just the monthly repayment.

Transfer Costs and Transfer Duty

Transfer costs are the fees charged by the conveyancing attorney who transfers ownership of the property into your name. These are separate from bond registration costs and are also calculated on the value of the property.

Transfer duty is a government tax paid on properties above a certain value threshold. As of the current tax year, properties priced below R1 100 000 are exempt from transfer duty, which is good news for many first-time buyers purchasing within the more affordable segments of the market.

The Deposit

While not all lenders require a deposit, having one improves your chances of bond approval and reduces the total amount you need to borrow. Because FLISP reduces your outstanding loan balance after approval, some buyers use it strategically in combination with a smaller deposit to keep their monthly repayments as low as possible.

It is worth noting that FLISP is not paid directly to you; it is paid to the financial institution holding your bond, or in some cases to the transferring attorney. This means it functions as a post-approval reduction rather than upfront cash in hand.

How FLISP Eases the Overall Financial Burden

While FLISP does not directly pay your attorney fees or cover your deposit before registration, it significantly reduces the total debt you carry after your bond is registered. A lower outstanding bond balance means:

• Lower monthly repayments throughout the loan term
• Less interest paid over the life of the bond
• A faster path to full homeownership

For buyers who are stretched by the upfront costs of purchasing a property, knowing that FLISP will reduce the ongoing financial commitment provides meaningful relief.

The FLISP Qualifying Criteria

To access the subsidy and benefit from the cost relief it provides, you must meet the following FLISP qualifying criteria:

• South African citizenship or permanent residency
• 18 years or older
• Gross monthly income between R3 501 and R22 000
• First-time homeowner with no prior government subsidy benefit
• Married, cohabiting, or with financial dependants
• An approved home loan from a registered financial institution

Documents and Information Required for FirstStep Housing to Assist

To begin your FLISP application with FirstStep Housing, you will need to supply:

• A certified copy of your South African ID or permanent residence permit
• Your three most recent payslips or proof of income
• Proof of marital status or cohabitation, or evidence of financial dependants
• A copy of your approved home loan agreement
• A signed sale agreement for the property
• Confirmation that you have not previously received a government housing subsidy

FirstStep Housing will assess your full application, guide you through the process, and ensure all documentation is submitted correctly so that your subsidy is processed without delay.

Buying your first home involves more costs than most people expect, but with the right guidance and the right subsidy, it is entirely achievable. APPLY NOW