Estate Living Magazine Design for living - Issue 42 June 2019 | Page 39

I N V E S T
&
year loan with a lending rate of 10%), and R640,000 with an interest rate
of 11% (over the same term).
This brings more buyers to the market and increases the level at which
they enter, which has a positive effect on the general housing market.
In the past the subsidies were quite low, and many estate agents were
loath to deal with buyers once they found out that they were planning
to apply for a FLISP subsidy. The increased subsidies, however, should
make it more attractive to all role players.The subsidy programme also
plays a role in the general economic empowerment of ordinary South
Africans. Many people may feel that home ownership is impossible,
but applying for FLISP may be a game-changer for them, and their
descendants.
How does Nedbank plan to be proactive in this market?
XN Nedbank has taken a proactive role in promoting the FLISP
programme. We have very strong relationships with the Department
of Human Settlements all across the country to facilitate a smooth
application process for our customers. Because of this strong
relationship, we are able to assist with the FLISP application process.
Furthermore, we encourage the developers and estate agents that
we work with in the affordable housing market to participate in the
programme.
What is the process?
XN The approval of financing is obviously still linked to one’s credit
profile, and Nedbank tackles the risk profile versus subsidised costs.
When FLISP is used upfront in the application process, it improves
the client’s loan amount in relation to the property value (LTV), which
in turn can reduce the risk of the individual’s profile. We advise clients
to maintain good credit profiles to improve their chances of being
approved for a mortgage, and therefore to be able to take advantage of
the FLISP programme
For more information, people are encouraged to visit their
nearest Human Settlements offices, National Housing Finance
Corporation (NHFC) www.nhfc.co.za (they are an official
implementing agency for FLISP appointed by Nation Treasury
and do not charge for their services) or speak to their banker.
28 July 2018 - Subsidy Parameters
Maximum Subsidy R 121 626.00
Minimum Subsidy R 27 960.00
Step Number
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
Lower
R 3 501
R 3 701
R 3 901
R 4 101
R 4 301
R 4 501
R 4 701
R 4 901
R 5 101
R 5 301
R 5 501
R 5 701
R 5 901
R 6 101
R 6 301
R 6 501
R 6 701
R 6 901
R 7 101
R 7 301
R 7 501
R 7 701
R 7 901
R 8 101
R 8 301
R 8 501
R 8 701
R 8 901
R 9 101
R 9 301
R 9 501
R 9 701
R 9 901
R 10 101
R 10 301
R 10 501
R 10 701
R 10 901
R 11 100
R 11 301
R 11 501
R 11 701
R 11 901
R 12 101
R 12 301
R 12 501
R 12 701
R 12 901
R 13 101
R 13 301
Higher
R 3 700
R 3 900
R 4 100
R 4 300
R 4 500
R 4 700
R 4 900
R 5 100
R 5 300
R 5 500
R 5 700
R 5 900
R 6 100
R 6 300
R 6 500
R 6 700
R 6 900
R 7 100
R 7 300
R 7 500
R 7 700
R 7 900
R 8 100
R 8 300
R 8 500
R 8 700
R 8 900
R 9 100
R 9 300
R 9 500
R 9 700
R 9 900
R 10 100
R 10 300
R 10 500
R 10 700
R 10 900
R 11 100
R 11 300
R 11 500
R 11 700
R 11 900
R 12 100
R 12 300
R 12 500
R 12 700
R 12 900
R 13 100
R 13 300
R 13 500
Amount
R 121 626
R 120 585
R 119 545
R 118 504
R 117 463
R 116 422
R 115 382
R 114 341
R 113 300
R 112 259
R 111 219
R 110 178
R 109 137
R 108 097
R 107 056
R 106 015
R 104 974
R 103 934
R 102 893
R 101 852
R 100 811
R 99 771
R 98 730
R 97 689
R 96 648
R 95 608
R 94 567
R 93 526
R 92 486
R 91 445
R 90 404
R 89 363
R 88 323
R 87 282
R 86 241
R 85 200
R 84 160
R 83 119
R 82 078
R 81 038
R 79 997
R 78 956
R 77 915
R 76 875
R 75 834
R 74 793
R 73 752
R 72 712
R 71 671
R 70 630
I
Where to find out more
FINANCE LINKED INDIVIDUAL
SUBSIDY PROGRAMME
NOTE– It’s best for the buyer to first confirm that they qualify for a
subsidy and to find out the exact details before putting in any offer to
purchase. Discuss this with your FLISP agent, bank or nearest Human
Settlements office.
D E V E L O P