Finance Linked Individual Subsidy Programme
Government housing Subsidy Available to First Time Home Owners Earning Between R 3501 – R 22000 – Who qualify for home loans.
What is FLISP?
Finance Linked Individual Subsidy Program, better known as FLISP, was developed by the Department of Human Settlement to enable affordable first time home-ownership opportunities to South African citizens and legal permanent residents earning between R 3 501 and R 22 000 per month, (the “affordable” or “gap” market). Individuals in these salary bands generally find it hard to qualify for housing finance; their income is regarded as low for mortgage finance, but too high to qualify for the government “free-basic-house” subsidy scheme.
The subsidy will be used to decrease the mortgage bond and is only applicable to persons who have never been assisted by the state. It will be disbursed as a once off subsidy.
What to do with FLISP?
Qualifying applicants may use FLISP to do one of the following:
• buy an existing, new or old, residential property.
• buy a vacant serviced residential-stand, linked to an NHBRC registered home-builder.
• contract or build a residential property on a self-owned serviced residential stand, through an NHBRC registered home-builder.
The once-off FLISP subsidy amount ranges between R 20 000 and R 87 000, depending on the applicant’s income. The maximum price of a property that can be financed through FLISP is not limited ,but the applicant has to meet the income bracket (R 3501- R 22 0000).