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