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Door to home ownership opened

If are looking to buy a home or property for the first time, you can apply for financial assistance from the Finance Linked Individual Subsidy Programme (FLISP).

The government programme encourages home ownership for those who earn between R3 501 - R22 000 per month.

The FLISP offers financial assistance which can be used as a deposit or to reduce the bond balance. The once-off assistance ranges from R27 960 to R121 626, depending on the level of household income.

To qualify for the subsidy, applicants must have been approved for a home loan by an accredited banking institution or a non-bank financial institution.

Human Settlements, Water and Sanitation Minister Lindiwe Sisulu says: “We have designed this subsidy to assist low income workers both in the private and public sectors. 

“This subsidy is to encourage home ownership among our teachers, factory workers, receptionists, nurses and police, amongst others.”

The Minister added that a budget of R461 million, which is expected to benefit 7 600 qualifying beneficiaries and leverage about R3.2 billion from private sector financial institutions, has been set aside for this financial year.

“Our resolve to restore the dignity of our people through human settlements goes beyond us giving fully subsidised houses to the indigent.

“We are also committed to responding to the housing needs of our middle-income earners through FLISP. We call on our people to seize this opportunity and apply for financial assistance,” says Minister Sisulu.

During the 2020/2021 financial year, the Human Settlements Development Bank processed 2 815 applications. Of these, 2 120 were approved with a total value of R111 million.

Progress has also been made in developing policy to enable   non-mortgage applicants to benefit from the programme.

The Minister says the programme is at an advanced stage and is expected to be concluded in the next few months.

“This will see people mainly in the rural areas applying for financial assistance to add to their home loans to build their own homes.”

The National Housing Finance Corporation will sign a number of service level agreements with banking institutions, and a Memorandum of Understanding with the Banking Association of South Africa, once policy is approved. - SAnews.gov.za

For more information on FLISP, call 0860 011 011 or go to www.nhfc.co.za