Housing Subsidy in South Africa


First-time homebuyers may be eligible for an R121,626 government housing subsidy. FLISP: the essentials explained. The idea of purchasing your first house may seem like a pipe dream, especially if your income is modest.

Despite the rise in property prices, many of us have lost hope of ever being able to buy our dream home. There was a time, though, when the FLISP housing subsidy didn’t exist.

It is a dream for many people in South Africa, especially those who make a low income, to own their own house. In the past, these dreams didn’t come true because there weren’t many options for cheap housing.

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To help you buy your first home, the FLISP Subsidy will help you pay for it.

housing subsidy

What exactly is FLISP?

FLISP is a government-backed initiative in South Africa that aims to promote and secure first-time home ownership for lower-income earners.

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The FLISP subsidy allows people like you to buy the home of your dreams.

The Finance Linked Individual Subsidy Programme (FLISP) was launched by the Department of Human Settlements in 2012, and the applicable income threshold for the program was raised in July 2018.

FLISP’s Operation

FLISP provides a substantial subsidy to low and middle-income earners that can be used to purchase property. FLISP subsidies can be applied for by any South African family with a monthly household income between R3,501 and R22,000, subject to pre-approval of a home loan.

It was previously set at R15,000 per month, but in July 2018, the South African government made additional budgetary commitments that allowed FLISP to be made available to a much broader range of citizens.

What Can a FLISP Subsidy Be Used For?

You can use your FLISP housing subsidy to put down a deposit on your first home or to shorten your home loan repayment period or lower your monthly repayment amounts.

The thought of applying for a bond to help you buy your first home can be terrifying if you don’t make a lot of money. So that people with low and middle incomes could gain access to property ownership in their own right, South Africa’s government created the FLISP program.

As a matter of fact, FLISP is like being given money for free so that you can buy your first home. No repayment of your FLISP subsidy is ever required.

Applicant Criteria for FLISP

You may be eligible for a FLISP subsidy if your family’s monthly income is between R3,501 and R22,000 per month. Keep in mind the following when submitting an application for a FLISP subsidy:

South African citizens who are at least 18 years old and either married, cohabiting or have a dependent are required to apply. The goal of FLISP is to help families buy their own houses.
You must have been pre-approved for a home loan by your bank or financial institution.

Before applying for a FLISP grant from the government, you must first secure a home loan. To get a home loan, you’ll have to go through a credit check and accept the terms and conditions of your financial institution’s agreement with you in order to do so.

If you are applying for a FLISP subsidy, your household’s income will be considered. R22,000 per month is the maximum amount of money you can bring into your home each month.

In order to be eligible, you must not have previously received a government housing subsidy or program. The FLISP subsidy is not available if you live in an RDP house.
The FLISP payment subsidy is one-time only. When you want to buy a second home, you cannot apply for a second FLISP subsidy.

If your monthly gross household income is between R3501 and R22 000, you may be eligible for a Flisp subsidy if you meet the following criteria:

  • You must be a South African citizen or have permanent residency in South Africa.
  • Have never gotten a government housing subsidy.
  • Have never had a home of my own.
  • You must be over the age of 18 and legally capable of entering into a legally binding contract to participate.
  • You must be married or living in a cohabiting relationship.

Only first-time homebuyers are eligible for Flisp subsidies. It can also be used to purchase undeveloped, serviced land as part of a house-building contract.

The amount of the subsidy varies according to the applicant’s income and ranges from R27 960 to R121 626.


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