WHAT IS FLISP AND WHO QUALIFIES FOR IT.

FLISP is the initiative by the Department of Human Settlements & NHFC to provide a subsidy to allow aspiring home owners to purchase a home and improve their affordability, which subsidy is also extended to existing home owners. [terms and conditions apply]

To qualify for the FLISP subsidy, you must meet the criteria determined by the Department or NHFC for each Province.

The requirements are:

•     Home loan must be approved
•     Must be a first time home buyer or existing home owner [you must apply within a certain time – each         Province has their own time limit]
•     Total [gross/combined] household income be between R3501 - R22 000
•     Be a South African citizen or in possession of a valid permit
•     If you are single, you must have a dependent 

  Depending on the applicant's gross monthly income, their once-off FLISP subsidy qualifying amount may vary between R27 960 and R121 626, as defined in the FLISP Subsidy Quantum.

  SUBSIDY QUANTUM Example 1 is based on an R9 000 p/m income-band, where the individual after the Lender/Bank's credit and affordability assessment, based on the National Credit Act (NCA) criteria, qualified for R300 000 home loan:

  FLISP REDUCES the home loan (mortgage or pension/provident backed loan) amount to render the monthly loan repayment instalments affordable; (payment made to home loan account)
  Property Price Bank HL Approval Less FLISP as a deposit EVENTUAL HOME LOAN AMOUNT	R300 000 R300 000 R93 526 R206 474

  
  

  SUBSIDY QUANTUM Example 2 is based on an R9 000 p/m income-band, where the individual after the Lender/Bank's credit and affordability assessment, based on the National Credit Act (NCA) criteria, qualified for R206 474 home loan:

  FLISP AUGMENTS shortfall between the qualifying loan amount and the total product price; (payment made to transfer attorneys)
  Property Price Bank HL Approval FLISP as HL top up EVENTUAL HOME LOAN AMOUNT	R300 000 R206 474 R93 526 R206 474

  
  

  FLISP subsidy is for residential properties in formal towns, where transfer of ownership and registration of mortgage bond is recordable in the Deeds Office.