Is FLISP for me?

FLISP is short for the Financial Linked Individual Subsidy Program, a government-backed initiative that seeks to promote and secure first-time homeownership for lower-income earners in South Africa. If you qualify and the subsidy is granted to you, you can use it to pay a deposit towards a property purchase or to decrease the size of a home loan.

In order to be eligible to receive the subsidy, an applicant can be single, married or cohabiting, and must show that he/she:

• has a household income of between R3 501 to R22 000 per month (previously the maximum threshold was set at

R15 000 per month);

• is a South African citizen or have

permanent residency here;

• has not received a government housing subsidy before and is a first time home buyer; and

• has obtained home loan approval from one of South Africa’s financial institutions or banks in respect of a planned purchase.

If approved, the subsidy is paid to the applicant’s home loan account. This will then have the effect to reduce the required monthly loan instalments, making it more affordable to buy a home.

To apply for FLISP, you must be in the process of purchasing a property (although it is also possible to apply retrospectively if the property was registered in your name in the past 24 months, in the Western Cape).

The transaction can relate to an existing residential property, or the purchase of a vacant serviced residential stand/plot (linked to a house-building contract via the Housing Department), or to the building of a new house with the assistance of an NHBRC accredited builder on a serviced residential stand/plot that the applicant already owns.

The process differs from region to region in South Africa. For example, clients are able to apply up to 24 months after registration in the Western Cape, however, only 12 months in other regions. Other regions are able to apply online, whereas this is not the process for the Western Cape.

This is where STBB steps in with our extensive knowledge in property law and with personnel who are equipped with the required skills to assist you in such an application and transfer.