FLISP
Fantastic news for first time buyers . Revisions to FLISP programme
National Minister of Human Settlements , Mmamoloko Kubayi announced in March that the Finance Linked Individual Subsidy ( FLISP ) has been delinked and is no longer just a mortgage only option .
By REI Editorial
WHAT IS FLISP ?
Established in 2005 , the FLISP programme is a Government housing subsidy that can assist first-time home buyers with purchasing a home . Households with an income between R3 501 to R22 000 may qualify for the FLISP subsidy which ranges between R27 960 to R121 626 depending on household income . The subsidy is paid directly to the bank or financial institution and can be used as a deposit to buy or build a home , or to pay towards an existing home loan and reduce the monthly instalments .
WHAT HAS CHANGED IN THE NEW POLICY ?
Originally , the approval of the subsidy was always linked to “ finance ” in the format of an approved home loan from either one of the major Banks . One would need to apply for a home loan first , and only if it was approved could they make an application for FLISP . If the bank loan was declined the buyer would not be able to access the FLISP programme .
30 APRIL 2022 SA Real Estate Investor Magazine