FLISP Housing Subsidy

Finance Linked Individual Subsidy Programme (FLISP) is a government housing finance that pays part mortgage for a first time home buyer. It was set up as part of a broader initiative to ensure everyone in South Africa in enjoys the right to have access to adequate housing as enshrined in The Constitution. More specifically, it was formulated as a solution to insufficient housing in the “gap” market. The term “gap” was used to mean the group of income earners or households that earn too much to get the low income government subsidy and too little to qualify for bank home loans. This was part of the President’s State of the Nation Address in January 2012. The National Housing Finance Corporation (NHFC) was then tasked with formulating and implementing this new mortgage finance initiative.

Later that year, in April, FLISP became effective and the designation for issuance of the new mortgage loan was released. It was to be given to households that earned a collective income that is anywhere between R 3 501 and R 15 000 monthly.  The loan started from R 87,000 for the family earning R 3 501 to R 10 000 for the household earning R 15 000 and would only cater for a mortgage or building worth R 300 000 or less. Currently, the qualifying household income allowed should be anywhere between R 3,501 and R 22 000 monthly. Approved households get a once-off FLISP subsidy of any amount between R 27 960 and R 121 626. This design for issuing FLISP subsidy will also depend on your monthly income like the previous one. As a consequence, lower income households also get higher FLISP subsidy and vice versa like in the initial design.

Application Process For FLISP

To qualify for the Finance Linked Individual Subsidy Programme (FLISP), different provinces have set specific conditions, requirements and application methods that will be useful if you want to get the subsidy. Either you as an individual or you and your spouse collectively must meet these requirements to qualify.

Gauteng

Conditions of FLISP

In Gauteng, the conditions include:

• You (and your spouse) should be a citizen of the Republic of South Africa with a valid ID document.
• You (and your spouse) should be a permanent resident of Gauteng with a valid permit.
• You (and your spouse) must be over 18 years and be legally able to enter a contract.
• You (and your spouse) must be first time home owner applicants of a government housing subsidy scheme. You must not have gotten any in the past.
• You (and your spouse) must be approved in principle for a home loan from accredited South African financial institutions beforehand.
• You (and your spouse) must be earning anywhere between R3 501 and R22 000 monthly.
• The FLISP subsidy must be sought with the intention of buying a residential property, buying a residential stand linked to the National Home Builders Registration Council (NHBRC), or building residential property on your own residential stand through a home builder registered with the NHBRC.

Requirements for Gauteng Applicants

• Certified RSA bar-coded identity document copies.

Application for FLISP

To apply for FLISP you can visit the National Housing Finance Corporation (NHFC) offices physical address at The Isle of Houghton, Old Trafford 3, 11 Boundary Road, Houghton.

Alternatively, you can call the NHFC cell phone number (011) 644 9800 or Fax them on (011) 484 0204. They also take emails on the address, info@nhfc.co.za.

Western Cape

Conditions of FLISP

In Western Cape, the conditions include:

• You (and your spouse) should be a citizen of the Republic of South Africa with a valid ID document.
• You (and your spouse) must be first time applicants of a government housing subsidy scheme. You must not have gotten any in the past.
• You (and your spouse) must be approved in principle for a home loan from an accredited South African financial services provider beforehand. If you already have a loan, you can apply within 12 months of having purchased the residential property.
• You (and your spouse) must be earning anywhere between R3 501 and R22 000 monthly.
• The FLISP subsidy must be sought with the intention of buying a residential property, buying a residential stand linked to the National Home Builders Registration Council (NHBRC), or building residential property on your own residential stand through a home builder registered with the NHBRC.

Requirements

• Certified RSA bar-coded identity document copies.
• If married, a certified copy of your marriage certificate.
• If divorced, the final divorce settlement papers.
• Your most recent original payslip, proof of social grant, or an affidavit confirming your unemployment status.
• Certified copies of birth certificates for your dependents. 
• Certified copy of the deed of sale or offer to purchase for the qualifying property.
• Certified copy of the loan approval or quotation for the bond.
• Original or certified copy of the statement of transfer cost from your transferring lawyer.

Application for FLISP

You can apply for FLISP in Western Cape immediately following the approval of your loan. In this case, ask the financial service provider who approved your mortgage for a guideline on how to incorporate FLISP subsidy. If you did not apply this way, you can visit the Department of Human Settlements (DHS) or your nearest municipality.

Eastern Cape

Conditions of FLISP

In Eastern Cape, FLISP subsidy is granted anywhere from between R 20 000 and R 87 000. The conditions for FLISP in this province include:

• You (and your spouse) must be first time applicants of a government housing subsidy scheme. You must not have gotten any in the past.
• You (and your spouse) must be approved in principle for a home loan from an accredited South African financial services provider beforehand.
• You (and your spouse) must be earning anywhere between R3 501 and R22 000 monthly.
• The FLISP subsidy must be sought with the intention of buying a residential property, buying a residential stand linked to the National Home Builders Registration Council (NHBRC), or building residential property on your own residential stand through a home builder registered with the NHBRC.

Application for FLISP

To apply for FLISP in the Eastern Cape, call their customer care at 086 000 0039, SMS then number 43619 or send a message to the email info@ecdhs.gov.za and request to apply for FLISP.

KwaZulu-Natal

Conditions of FLISP

In KwaZulu-Natal, the conditions include:

• You (and your spouse) should be a citizen of the Republic of South Africa with a valid ID document.
• You (and your spouse) should be a permanent resident of Gauteng with a valid permit.
• You (and your spouse) must be over 18 years and be legally able to enter a contract.
• You (and your spouse) must be first time applicants of a government housing subsidy scheme. You must not have gotten any in the past.
• You (and your spouse) must not be in ownership of a property or have owned property in the past.
• You (and your spouse) must be approved in principle for a home loan from an accredited South African financial services provider beforehand.
• You (and your spouse) must be earning anywhere between R3 501 and R22 000 monthly.
• The FLISP subsidy must be sought with the intention of buying a residential property, buying a residential stand linked to a house building contract via the Department of Housing Settlement (DHS), or building residential property on your own residential stand through a home builder registered with the NHBRC.

Requirements

• Certified RSA bar-coded identity document copies.
• If married, a certified copy of your marriage certificate.
• If divorced, the final divorce settlement papers.
• Your most recent original payslip, proof of social grant, or an affidavit confirming your unemployment status.
• Certified copies of birth certificates for your financial dependants. 
• Certified copy of the deed of sale or offer to purchase for the qualifying property.
• Certified copy of the approval or quotation for the bond.
• Original or certified copy of the statement of transfer cost from your transferring lawyer.

Application for FLISP

To apply for FLISP in KwaZulu-Natal, visit the DHS address at 11 floor Eagle Building (munchies passage), 353–356 Dr Pixley KaSeme (former West street), Durban. For cell phone calls use the numbers, 031 336 5396 / 031 336 5262 / 031 336 5277 / 031 336 5285 / 031 336 5418.

Free State

Conditions of FLISP

In Free State, the conditions include:

• You (and your spouse) should be a citizen of the Republic of South Africa with a valid ID document.
• You (and your spouse) should be a permanent resident of Gauteng with a valid permit.
• You (and your spouse) must be over 18 years and be legally able to enter a contract.
• You (and your spouse) must be first time applicants of a government housing subsidy scheme. You must not have gotten any in the past.
• You (and your spouse) must be approved in principle for a home loan from an accredited South African financial services provider beforehand.
• You (and your spouse) must be earning anywhere between R3 501 and R22 000 monthly.
• The FLISP subsidy must be sought with the intention of buying a residential property, buying a residential stand, or building residential property.

Requirements

• Certified RSA bar-coded identity document copies.
• Bar coded permanent residence permit.
• If married, a certified copy of your marriage certificate.
• If divorced, the final divorce settlement papers.
• Proof of your monthly income.
• Certified copies of birth certificates for your dependents. 
• Certified copy of the deed of sale or offer to purchase for the qualifying property.
• Certified copy of the approval or quotation for the bond.
• Original or certified copy of the statement of transfer cost from your transferring lawyer.

Application for FLISP

To apply for FLISP in Free State, visit Free State Development Corporation (FDC) at the address: 33 Kellner Street Bloemfontein or call the contact number: +27 (0) 51 4000 800.

Northern Cape, Limpopo, North West and Mpumalanga

Conditions of FLISP

In the Northern Cape, Limpopo, North West, and Mpumalanga provinces the conditions for a FLISP subsidy include:

• You (and your spouse) should be a citizen of the Republic of South Africa with a valid ID document.
• You (and your spouse) should be a permanent resident of Gauteng with a valid permit.
• You (and your spouse) must be over 18 years and be legally able to enter a contract.
• You (and your spouse) must be first time applicants of a government housing subsidy scheme. You must not have gotten any in the past.
• You (and your spouse) must be approved in principle for a home loan from an accredited South African financial services provider beforehand.
• You (and your spouse) must be earning anywhere between R3 501 and R22 000 monthly.
• The FLISP subsidy must be sought with the intention of buying a residential property, buying a residential stand linked to the National Home Builders Registration Council (NHBRC), or building residential property on your own residential stand through a home builder registered with the NHBRC.

Requirements

• Certified RSA bar-coded identity document copies.
• Your most recent original payslip, proof of social grant, or an affidavit confirming your unemployment status.
• Certified copies of birth certificates for your dependents. 
• If married, a certified copy of your marriage certificate.
• Certified copy of the deed of sale or offer to purchase for the qualifying property.
• If divorced, the final divorce settlement papers.
• A certified copy of the approval or quotation for the bond.
• Original or certified copy of the statement of transfer cost from your transferring lawyer.

Application for FLISP in the Northern Cape

Contact the DHS for Nothern Cape at the address: JS du Plooy Building, 9 Cecil Sussman Road, Kimberley, 8301 or use the contact numbers: 053 830 9400 and 053 830 9422.

Application for FLISP in Limpopo

To apply for FLISP in Limpopo visit Department Of Social Development Limpopo or call +27 15 230 4300 and request Risima Housing Finance.

Application for FLISP for North West

To apply in the North West province call the contact numbers: 018 381 5029/018 388 5414/018 388 4800 or email flisp@nhfc.co.za.

Application for FLISP in Mpumalanga

To Apply for FLISP in Mpumalanga, visit the DHS address: 7 Government Boulevard, Riverside Park Building, No. 6 & 7, Nelspruit or call the contact number: 013 766 6088.

Conclusion

If you earn anywhere between R 3 501 and R 22 000 a month and have never owned a home or been a beneficiary of any government subsidy programme, you can apply for the Finance Linked Individual Subsidy Programme (FLISP).

READ ALSO:

• 10 Easy Ways to Invest Without Much Money in South Africa
• How to Choose the Best Retirement Annuity
• List of Top Investment Opportunities in South Africa 2022