"An Attorney near me" - Cape Town legal directory
lawyer@capetownlawyer.co.za or WhatsApp

Property Lawyer

Apply for FLISP Government Housing Subsidy

FLISP is the name of a subsidy which the government makes available to South African citizens and permanent residents who have never bought a property before, are not poor enough to qualify for a fully subsidised house, but are not wealthy enough to qualify for a bank's home loan without a subsidy. FLISP is short for "Finance Linked Individual Subsidy Projects". We will assist and guide you throughout the process. Contact us today to get started at lawyer@capetownlawyer.co.za

FLISP application requirements

To qualify for the FLISP housing subsidy you must:

• Never have owned residential property before.
• Have people who are financially dependant on you.
• have a combined family income which is not higher than R22,000 per month, and not lower than R3,501 per month.
• Have never before benefited from a South African State Housing Subsidy.
• Be an SA permanent resident (with valid permit) or have a valid SA ID.
• Be over eighteen years old.
• Have a pre-approved home loan from a bank.

The documents required to apply for the FLISP subsidy are:

• ID documents of all adults in your household and the birth certificates of all the children.

• Proof of income.

• Divorce Settlement Agreement or Marriage Certificate.

Subsidy you qualify for

The amount of First Home Finance Subsidy you qualify for depend on your family/household's joint monthly income:

• R3,700 per month income means
  • Subsidy up to R169,264
• R7,300 per month income means
  • Subsidy up to R143,187
• R22,000 per month income means
  • Subsidy up to R38,911

Email lawyer@capetownlawyer.co.za to see what you may qualify for.

What the Subsidy may be used for

The housing subsidy can be used for the following purposes:

• A deposit towards meeting the purchase price and reducing the home loan from the bank on the house you are buying
• Building a property on a piece of vacant land you own, with a NHBRC registered homebuilder
• Paying legal costs such as conveyancing costs including attorney transfer fees; as well as other property transfer costs.
• Paying Bond registration costs

Steps to buying your house

One of the first steps is to get pre Approved for home loan finance, if you can't get a pre-approved home loan then you wont qualify for FLISP. We can assist you in applying with FNB, Nedbank, Ooba, Standard Bank or Absa. Then identify a house which you'd like to buy. Contact lawyer@capetownlawyer.co.za to help you with:

• Drafting an Offer to Purchase and putting in an offer
• The Deed of Sale
• Applying to the Department of Human Settlements for a FLISP housing subsidy.
• Transfer of the property from being registered in the seller's name to being registered in your (the buyer's) name.
• Your FLISP housing subsidy would then, if approved, be paid into either:
  • The Attorneys Trust Account or
  • Your Home Loan Account once your bond has been registered.

Bond pre-approval for FLISP

Very few people buy properties without taking out a home loan. Being pre-approved for a home loan gives you more credibility as a property buyer, allows you to target buying homes which are in your price range, and allows you to tick one of the boxes to qualify for the FLISP housing subsidy. The pre-approval quote usually includes the bond amount, the instalment amount, the interest rate at which it was calculated, and the validity period. Options for getting pre-approved for home loan finance are to apply at banks, or to request a bond originator to apply at multiple banks on your behalf. Getting a pre-approved bond is a completely free service.

Bond originators

• Ooba Home Loans
  • Eighth Floor of Ooba House, 33 Bree St (corner with Riebeeck Street, says "ooba" on the building), Cape Town city centre
  • Phone +27-860006622
• Betterbond
  • Phone +27-800007111

Banks

• Absa Personal loans
  • Phone +27-860111007
  • Email propertyhub@absa.co.za
• First National Bank
• Investec
• Ithala
• Nedbank
  • Phone +27-800555111
• RMB
• SA Home Loans
• Sentinel Homes
• Standard Bank

Information typically required for pre-approval of a home loan includes:

• Your South African identification document.
• Your last 3 months of bank statements.
• The latest payslip from your employer.
• Details of any debts or other liabilities.
• Consent to carry out a credit check on you.

It's important to be aware that being pre-approved does not guarantee that you will receive a home loan, although it does increase the probability.

FLISP contact details

• The contact number for the Department of Housing is +27-800146873
• The contact number at the Western Cape Government is +27-21-4836488 (or email Human.Settlements@westerncape.gov.za)

We assist clients who are registered on the government database, have not yet been allocated housing, and who have of their own accord found a house they wish to purchase. To be placed on the City of Cape Town or Western Cape Government’s data base for housing opportunities you would need to contact them directly.

Individual Housing Subsidy

If you don’t qualify for the FLISP Housing Subsidy you may qualify for an Individual Housing Subsidy of up to R261 000. Email lawyer@capetownlawyer.co.za to find out more.
Warning: readfile(https://www.capetownlawyer.co.za/live-content/includes/property/conveyancing-articles.php): Failed to open stream: HTTP request failed! HTTP/1.1 404 Not Found in /home/capetlod/public_html/property/home-loans/flisp/apply-for-flisp-housing-subsidy.php on line 210