In South Africa, household income levels vary widely, and for many families, the financial demands of purchasing a home make it seem unachievable. A government subsidy for your first house enables you to begin your journey towards homeownership if you meet the requirements. A subsidy like this means that families in the middle-income bracket do not get left behind, struggling to pay rent and never managing to acquire a bond.
How do you know if First Home Finance (FHF), widely known as FLISP, is the ideal government subsidy for your first house? The target market is South African residents who cannot afford a traditional home loan but also do not meet the low-income requirements for free government housing. A significant number of households fall into this gap market, and FLISP offers a path to first-time homeownership that works in these cases.
Accessible homeownership is possible, and FirstStep Housing is here to help. It can be stressful and time-consuming to apply for a government subsidy. Let us work with you to see if you qualify. Once we proceed with your application, you are moving towards an exciting new chapter in your life. From gathering and submitting relevant documents to originating your bond and finalising transfer papers, our team make the process as easy as it can be.
FHF/FLISP can be utilised with various financing options, which include mortgage loans, pension-backed loans, and your personal savings. This housing subsidy can be used to reduce your home loan amount, pay a deposit, or cover transfer costs and bond origination fees. Government Subsidy Housing: Our Guide for First-Timers provides more insight about this topic.
Before we can assist with your FLISP application, you need to have a signed Offer to Purchase (OTP) or sale agreement in place for the home you plan to buy. FHF/FLISP recipients typically purchase homes valued between R250,000 to R700,000, however, there is no fixed price cap.
Keep your affordability in mind and choose an entry-level home that works for your family. You can even get pre-qualified for a home loan before applying for FLISP. This makes it easier to choose a property before applying for a government subsidy for your first house.
Please keep in mind the criteria to qualify for FLISP: You must be a first-time home buyer, be older than 18 and a South African resident, have never benefited from any government subsidy or housing program, have a spouse and/or dependants, and earn a combined monthly income of between R3,500 and R22,000.
For FirstStep Housing to assist you with your FLISP application, we will require the following documents and details:
With the right support, owning your first home is easier than you think. Apply now and let FirstStep Housing guide you through your FLISP application with confidence.