How Your Credit Profile Affects House Subsidies

30 Mar How Your Credit Profile Affects House Subsidies

Posted at 12:21h in Latest News by

As a South African consumer, you are likely aware of how important your creditworthiness is in relation to your personal finances. When it comes to FLISP eligibility and how your credit score affects approval, note that your credit score will not play a direct role. At the same time, though, you must be buying a home to apply for FLISP, which is where your credit profile might affect your application.

While some government subsidies are paid into your account to provide financial relief, FLISP is a finance-linked subsidy, which is meant to be used in conjunction with a home loan, savings, or a pension fund when you buy your first home. When you apply for a home loan, your credit profile will impact how much you receive – if your credit score is bad, you may not even be able to secure a loan at all.

What is your Credit Profile?

Your credit profile represents your credit behaviours, debts, and any defaults against you. Lenders and banks use it to determine risk when lending you money, which is also the case if you apply for home financing. When working with us to secure government subsidy housing, your transparency allows us to guide you on the best course of action for success.

FLISP offers shortfall solutions, bridging the gap to homeownership for families in South Africa. If you already have a pension fund available or will be using savings, stokvels, or employer-assisted housing, then your credit profile will not matter. If not, use this free credit check to see where you stand, and start improving your credit report before applying for the FLISP housing subsidy.

Moving in to a new home using FLISP

Is FLISP For You?

There are qualifying criteria in place to ensure that the gap market can benefit from FLISP when pursuing homeownership. Although you do not need a home loan secured before applying for a loan, you do need to supply us with an offer to purchase or sales agreement for the home you want to buy.

We also require proof of income and valid SA identification for each prospective buyer, as well as the birth certificates of all minors living within your household as dependents. Additionally, where applicable, we also need your marriage certificate, divorce order, or settlement agreement as part of the FLISP application.

You also need to tick the following boxes to qualify for FLISP:

  • Earn a monthly household income between R3,500 and R22,000
  • Be a South African citizen or permanent resident
  • You must be 18 years or older and legally able to enter contracts
  • Be married, cohabiting, or single with financial dependants
  • Never have owned residential property before, except for a serviced stand with a Title Deed already in your name.
  • Have not previously received any housing subsidy that gave you ownership, leasehold, or a deed of grant

Start taking the first steps towards owning your home today, with help from our result-driven FirstStep Housing team. APPLY NOW.