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What is FLISP?

FLISP is a subsidy of your home loan application, provided by the South African government to first-time buyers who fall within a lower income bracket. The subsidy ranges between R30 001 and R130 000 depending on your income (the lower your income, the higher your subsidy), and is paid into your home loan account or your attorney’s trust account.

You used to have to apply for a home loan and have the application approved before you could apply for FLISP, but as of April 2022, this is no longer necessary. You can now use other sources of finance to apply, including:

  • the beneficiary’s pension/provident fund loan
  • a co-operative or community-based savings scheme, i.e. stokvel
  • the Government Employees Housing Scheme
  • any other Employer-Assisted Housing Scheme
  • an unsecured loan
  • an Instalment Sale Agreement or Rent-to-own Agreement

However, before applying for FLISP, determine if you meet the following criteria:

  • Your income must range from R3501 to R22 000 per month.
  • You must be a South African citizen with permanent residency in South Africa.
  • You must not have received a government housing subsidy before.
  • You must be married or cohabiting OR single with financial dependents.
  • You must be over 18 years old.
  • You must not have owned a fixed residential property before.