Housing Subsidy Explained in Simple Terms

22 Jun FLISP Subsidy Explained: Amounts and Who Qualifies

Posted at 08:00h in Latest News by

The FLISP subsidy (Finance Linked Individual Subsidy Programme), now called First Home Finance (FHF), is a once-off government grant that helps qualifying South Africans afford their first home.

It does not need to be repaid. If you fall into the “gap market”, earning too much for an RDP house but too little to manage a home loan comfortably on your own, FLISP may be the support you need.

What Is a Housing Subsidy?

A housing subsidy is a financial contribution from the government paid directly to your conveyancer and applied to your property purchase. It can be used as a deposit, to reduce your bond amount, or to cover transfer and registration costs. It is not paid to you in cash, and you never repay it. For a plain-language breakdown, read our housing subsidy explained guide.

FLISP Subsidy Amounts in 2026

The amount you receive is based on a sliding scale tied to your monthly household income. The lower your income, the higher your subsidy:

  • Earning around R3,501 per month: up to approximately R169,264
  • Earning around R10,000 per month: approximately R90,000 to R100,000
  • Earning around R22,000 per month: approximately R38,878

These figures are set by the National Housing Finance Corporation (NHFC) and reviewed periodically.

Who Qualifies for FLISP?

You must meet all of the following criteria. The full list is available on our FLISP qualifying criteria page:

  • At least 18 years old and a South African citizen or permanent resident
  • Combined monthly household income between R3,501 and R22,000
  • Never owned a residential property or received a government housing subsidy before
  • Have a spouse or dependant
  • Have a signed Offer to Purchase (OTP) in place

A home loan is not required. FLISP works alongside cash, a pension, savings, or a stokvel. Once approved, you can read about what happens after your FLISP application is approved to understand the next steps.

How to Apply

FirstStep Housing manages the full application process on your behalf – from eligibility checks and document collection through to NHFC submission and follow-up. Our step-by-step FLISP application guide walks you through what to expect at each stage.

Want to learn more before you apply? Our homeowners guide is a great place to start.

Ready to find out how much you qualify for? APPLY NOW