What is FLISP?
FLISP, short for Finance Linked Individual Subsidy Programme( FLISP), is a subsidy offered by the Government and facilitated by either the Department of Human Settlements, or the National Housing Finance Corporation. This subsidy is offered to enable first time home owners who fall into the gap market to finance their home buying process, where it is difficult to. FLISP pioneers and attorney, Meyer De Waal says this subsidy is not well known, and few agents or sellers are aware that this financial assistance exists.
When Should I Apply?
“ Purchasing a home is likely the biggest investment you will make in your lifetime and such an investment will require planning, preparation and a thorough approach to realising the goal of owning your first home,” Says De Waal.
According to De Waal, the first step to applying for a FLISP subsidy is checking is checking if you qualify for the financial assistance. To check, visit the FLISP website- https:// flisp. co. za / and make use of the FLISP Subsidy Calculator to calculate the FLISP subsidy amount you can qualify for.
“ The sooner you know if you qualify, and for what amount you qualify for, you can begin to put together your bond application, and shop for properties that are now within your affordability range. The knowledge of the FLISP subsidy you qualify for greatly increases your buying power,” He says.
FLISP for Existing Home owners
Home buyers who recently took transfer and meet the qualifying criteria can also apply for a FLISP subsidy. In the Western Cape, existing home owners can apply retrospectively for a FLISP subsidy for up to 24 months after the date of transfer. In the Eastern Cape, no late applications are accommodated and in all other Provinces only up to three months after the date of transfer.
“ Purchasing a home is likely the biggest investment you will make in your lifetime.”
Do I Qualify for A FLISP Subsidy?
FLISP subsidies are available for first-time home buyers who earn between R3, 501.00 to R22, 000.00 per month, calculated on gross combined household income. The home loan for the buyer must first be approved, the buyer must be a South African citizen and be married, cohabiting or single with a financial dependent such as a spouse or a child. The new buyer must not have benefited from a similar subsidy before, for example an RDP house.
How Does it Work?
Deposit
The FLISP subsidy can be used in a variety of ways. It can be used to put down a deposit on a home, showing the seller you are committed to the sale and serious about your offer.
SA Real Estate Investor Magazine MARCH 2021 21