The Finance Linked Individual Subsidy Programme (FLISP) is designed to help first-time home buyers in South Africa to purchase a home by providing them with financial assistance. This guide will walk you through the application process, eligibility criteria, and provide answers to common questions about the FLISP subsidy.

What is FLISP?

FLISP is a subsidy program developed by the South African Department of Human Settlements to reduce the home loan amount needed from a bank, making the monthly repayments more affordable. It targets individuals earning between R3,501 and R22,000 per month who find themselves above the threshold for free housing but below the level where they can comfortably afford a mortgage.

How to Apply for flisp Application

How to Check Status of flisp Application

What are the flisp application requirements

How to complete flisp application

Step-by-Step FLISP Application Process

Step 1: Check Eligibility

Before applying for FLISP, confirm that you meet the following criteria:

• You must be a South African citizen or hold a permanent residency permit.
• You must be over 18 years old and competent to legally contract.
• You must have a dependant or be married/cohabiting.
• You cannot have previously benefited from a government housing subsidy.
• You must not currently own residential property.
• You must have an approved home loan from a recognized financial institution.

Step 2: Credit Rating Assessment

Check your credit rating as banks will review your credit history when applying for a home loan. Factors considered include:

• Debt levels and repayment capacity.
• Payment profiles and any judgements or listings.
  Obtain a free annual credit report from major bureaus like TransUnion, Experian, or XDS to assess your financial standing.

Step 3: Calculate Affordability

• Determine the price of the property you intend to buy.
• Calculate the potential FLISP subsidy using the subsidy calculator provided on NHFC’s website.
• Deduct the FLISP subsidy and any personal savings from the property price to figure out the loan amount needed.

Step 4: Property Search and Offer to Purchase

• Find a property that fits within your budget and financing limits.
• Make an offer to purchase (also known as a deed of sale), which is a legally binding agreement with the seller.

Step 5: Apply for Home Loan and FLISP Subsidy

• Submit your home loan application to the bank.
• Once approved, apply for the FLISP subsidy through the NHFC or your local Department of Human Settlements office. You will need to provide:
• Identity document or permanent residency permit.
• Proof of income.
• Approved home loan documentation.
• Offer to purchase/deed of sale.
• Other documents as specified by the DHS or NHFC.

Step 6: Subsidy Approval and Property Transfer

• Upon approval of both your home loan and FLISP subsidy, the NHFC will coordinate with the Department of Human Settlements to finalize the subsidy.
• Engage with conveyancing attorneys for the transfer of property and registration of the bond.
• Pay any applicable fees such as transfer duties, attorney fees, and bond registration costs.

Step 7: Finalize the Purchase

• Complete the property transfer.
• Move into your new home upon receiving the keys and finalize any remaining paperwork and payments.

Important Tips and Considerations

• Always keep a copy of all documents submitted for your records.
• Ensure that all your documents are correctly filled out and certified.
• Stay in contact with your bank and the NHFC to monitor the progress of your applications.
• Plan for additional costs not covered by the subsidy, such as moving expenses and home maintenance.

Frequently Asked Questions (FAQs)

1. What happens if my home loan is declined?

• Find out why it was declined. Address the issues, possibly with the help of a financial advisor, and reapply when your financial situation improves.

1. Can I buy a property anywhere in South Africa?

• Yes, FLISP is applicable for properties across South Africa, but ensure the property meets the criteria set out by the subsidy program.

1. How long does the FLISP application take to process?

• It can take several weeks to a few months, depending on various factors including the completeness of your application and the efficiency of the involved agencies.

1. Is there a deadline for applying for FLISP?

• There is no specific deadline, but it’s advisable to apply as soon as your home loan is approved and you have made an offer on a property.

By following this guide and preparing accordingly, you can navigate the FLISP application process with greater ease and clarity. Remember, owning a home is a significant financial commitment and utilizing programs like FLISP can make it more accessible and affordable.