FINANCE
R1 519 755.00 over the 20 year repayment term , as the bank approved a 11.2 % home loan interest rate .
Only in late in 2022 Tumelo realize that FLISP subsidies were available for existing homeowners as well . Tumelo was assisted and guided to process his FLISP application by our FLISP consultants .
In January 2023 , he received the good news that an amount of R89 187,00 will be paid back into his home loan .
The advice to him is to continue with the current home loan repayment and pay off the home loan as quickly as possible and shave off 6 years and 8 months on the 20-year repayment term . By doing so , Tumelo will save up to R420 000.00 .
The Calculations
The first is a calculation done one how much he will pay without the FLISP subsidy .
The home loan amount is R605 480.00 , paid over 20 years and at the rate of 11.2 %
Pay FLISP subsidy of R89 187 into home loan
Then we calculate the timing , considering the various dates of the registration of transfer and the actual date when the FLISP subsidy will be paid into the home loan .
SA Real Estate Investor Magazine FEB 2023 39