The History of FLISP

FLISP stands for the Finance Linked Individual Subsidy Program. It is a government initiative designed to help lower- to middle-income South Africans afford homes. Introduced by the Department of Human Settlements, its goal is to bridge the affordability gap between low-income earners who qualify for RDP housing (free government housing) and higher earners who qualify for mortgages without a subsidy.

FLISP is essential for people earning between R3,500 and R22,000 per month to finance homes of their own. Without it, accessing home loans and financing would be nearly impossible.

This page discusses the history of the Finance Linked Individual Subsidy Program (FLISP) and how the program could help you finance your first home.

How FLISP Works

FLISP is a subsidy program (money from the government that you never have to pay back). You could receive up to R169,265 from First Home Finance, depending on your income. The subsidy can be used for:

  • A deposit for your home
  • Covering transfer fees and mortgage registration costs for your home
  • Reducing your loan amount

To qualify, your household must earn between R3,500 and R22,000 per month. It must be your first home or property purchase, and you must have a spouse or dependent. Additionally, you must be 18 years old or older and a South African citizen or permanent resident.

The process works as follows:

  1. First, you should contact FirstStep Housing.
  2. One of our consultants will assess your case and inform you of whether you’re eligible for the subsidy.
  3. If you are eligible, we’ll ask for the relevant documentation to submit to FLISP.
  4. Should you be approved, you can use the money for your loan, house deposit, or other related expenses.

To get started, contact FirstStep Housing. Let us help you get a housing subsidy.

The History of the Subsidies

After apartheid (in the early 2000s), the government focused on providing housing solutions, primarily through RDP (Reconstruction and Development Programme) housing for low-income households. Over time, it became apparent that middle-class consumers who didn’t qualify for RDP were struggling to finance their own homes.

Around 2012, FLISP was officially launched to help people earning more than R3,500 who didn’t qualify for RDP housing afford homes. The program initially supported households earning between R3,501 and R15,000 per month, and was later adjusted to include higher income brackets. Depending on applicants’ income, subsidy amounts ranged from R20,000 to R87,000.

In 2018, the government streamlined FLISP applications to improve accessibility. It partnered with banks to encourage homeownership and make loans more readily accessible. Over time, the subsidy income threshold was increased to R22,000 to adjust for inflation and economic pressures.

In 2022, the government removed the requirement for a home loan to qualify for FLISP. Instead, applicants could use their retirement savings, cooperative housing loans, and unsecured housing loans, such as personal loans. This change enabled South Africans to buy houses without traditional banks impeding their progress.

Recently, subsidies have increased to R169,265 and are now managed by FHF.

What’s FHF?

FHF is the new name for FLISP. It functions exactly the same as FLISP, just under a new name.

Discover the history of FLISP (Finance Linked Individual Subsidy Program), a government initiative that helps people afford their first homes

Let Us Expedite Your Application

We’ll assess your finances and circumstances to determine whether you qualify for FLISP/FHF, then help you complete your application promptly. This way, you won’t miss out on any important documents, and your application will be approved quickly.

Let FirstStep Housing help you cover the cost of your first home, transfer and bond registration costs, and the legalities of homeownership. To find out more, apply today.