The government’s Finance Linked Individual Subsidy Programme (FLISP) has expanded its qualifying criteria and now allows first-time homebuyers who earned a gross salary of up to R22 000 to qualify for a subsidy.
In July 2018 the value of first-time homebuyers subsidies were increased and the qualifying criteria extended from a income limit of R15 000 to R22 000.
Previously, the subsidy for people who earned R12 000 was R37 650, while now beneficiaries can qualify for a subsidy of R77 915 on the same salary.
Households or individuals who earn a gross salary of R15 000 previously qualified for a subsidy of R20 000 can now get a subsidy of R62 304, while locals with an income of R22 000 are eligible for a subsidy of R27 960.
There are no restrictions on the type of property you can purchase if you make use of the subsidy, whether it is an existing home or a new property development.
What is FLISP?
The FLISP programme is a housing subsidy for first-time home buyers that assists them with purchasing a home. The subsidy is paid to your bank or financial institution and will reduce your required monthly loan installments, making it more affordable to purchase a home. Households with an income between R3 501 and R22 000 may qualify for the FLISP subsidy if they meet all other criteria.
– You earn between R3 501 to R22 000
– You are a South African citizen or have permanent residency in South Africa
– You have not received a government housing subsidy before
– You have not owned fixed residential property before
– You are competent to contract – over 18 years
– You are married or cohabiting
– You are single with financial dependents.
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