Finance Linked Individual Subsidy (FLISP) Explained


Our economy often leaves first-time buyers with a little chill when considering the finances of buying a home. There are those who have a combined income that helps them to possibly afford a home. Others have to carefully plan the possibility of having their own home. Fortunately, the Finance Linked Individual Subsidy (FLISP) has given many new buyers a great opportunity to buy.


If you are not yet aware of the FLISP or have some questions, then you are reading the right article. Let us delve into the FLISP and how it can affect your home buying options.


Silver Lining For First-Time Buyers


What is the FLISP?

The Finance Linked Individual Subsidy, or FLISP, was created by the Department of Human Settlement. The aim of this subsidy is to help South Africans to step on the property ladder. The subsidy is paid directly to your bank or financial institution and will reduce your monthly loan instalments. In effect, this makes it a lot more affordable and possible to purchase a home.


Who qualifies for FLISP?

Any South African citizen can apply if they earn between R3,501 and R15,000 per month. In 2018 there was an amendment to the subsidy that has seen the bracket move to R22,000 per month. Citizens in this salary bracket often find it hard to qualify for housing finance. Their income is too low for finance but too high to qualify for the government “free-basic-house” subsidy scheme. The FLISP subsidy works on a sliding scale, depending on your income, to determine the amount you will qualify for.


How does the FLISP help?

Applicants who qualify for the FLISP subsidy will be able to use the funds towards one of the following:

  • Buy an existing residential property, whether brand-new or old.
  • Buy a vacant residential stand linked to the National Home Builders Registration Council (NHBRC) registered home builder contracts. In other words, buying from a developer.
  • Build a residential property on a self-owned residential stand, through a National Home Builders Registration Council (NHBRC) registered homebuilder.

The FLISP subsidy will help you to reduce the initial loan amount. You can also use it towards the deposit of the property. Use it to cover the bond registration and legal transfer fees.


How can you apply for the FLISP subsidy?

It is important that you ensure that you meet all of the criteria before applying for the FLISP subsidy. Then you must get an approved home loan on the property or home that you are interested in buying. Gather all the necessary documents and submit for review. If all the documents are in order, you may expect a reply within a few weeks.


The Finance Linked Individual Subsidy (FLISP) has allowed many South African first-time buyers to buy their own home. This programme has been a great stepping stone for many people. Find out if you too can qualify for this life-changing opportunity.


The Milkwood Townhouse Complex is a brand-new development in the suburb of Kuils River. Situated within a short distance of Cape Town City Centre, this complex is an ideal option for first-time buyers. The secure environment means that it is also a great place to raise your family. Contact our agents to book a viewing appointment today.

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