All you need to know about the Finance-linked Individual Subsidy Programme (FLISP)
What is FLISP?
The Finance-linked Individual Subsidy Programme (FLISP) is a subsidy instrument that assists qualifying households by providing a once-off payment to those households who have secured mortgage finance to acquire a residential property for the first time.
Who qualifies for FLISP?
Any South African citizen over the age of 18, who earns between
R3 501 and R22 000 gross household income per month, and who is in the process of purchasing a property for the first time. The applicant/s must also have never received any government housing subsidy previously, and must be married or co-habitating. If single, applicants must have a legal financial dependant living with them.
How does FLISP assist me when purchasing a property?
The subsidy can be used as a deposit or it can be credited to the applicant’s bond account, thus reducing the bond amount. The subsidy or a portion thereof can also be used for legal costs, and any balance available will be credited to the bond account or used to cover any shortfalls (deposit).
Is FLISP a loan from the government?
No. The subsidy is a once-off payment, which is not repayable to government.
How much does the government give me?
This will depend on the applicant’s total household income and is based on a sliding scale ranging from
R30 001, if the total household income is R22 000; and up to
R130 505, if the total household income is R3 501.
Where do I apply for FLISP?
An application form can be obtained from the FLISP Help Desk at Eagle Building, 11th floor, 363 Dr Pixley Kaseme Street, Durban; or 199 Pietermaritz Street, Pietermaritzburg.
It is also available on the website: www.kzndhs.gov.za Application forms are also available at all branches of the major banks throughout the province.
Can I use FLISP if I don’t get a 100% bond?
Yes. The subsidy can be used as a deposit to cover the shortfall.
Will I get FLISP if I don’t get a home loan?
The programme only works with a home loan or with a pension backed loan provided that it comes via the bank.
Can I use FLISP if I buy a property using my savings?
No. The applicant must obtain a home loan.
If I buy land from the chief, will I get FLISP?
No. Any property that is subsidised by FLISP must have a title deed attached to it.
Can I buy a RDP house using FLISP?
Yes, provided there are no restrictive conditions preventing the sale and the banks are willing to provide a home loan.
Do I qualify for FLISP even though I receive a housing allowance from the government?
Yes. The allowance, however, will be added to determine salary.
My property was repossessed, but now I want to buy a new property. Can I get FLISP, as I have never benefited from the government before?
No. The subsidy is strictly for firsttime home owners.
Do I need to pay for applying for FLISP?
No. This is a free service offered by government.