Finance Linked Individual Subsidy Programme (FLISP)

FLISP offers down payment assistance in the form of a grant to Qualifying Beneficiaries, who are in a financial position to secure a Home Loan (Mortgage Loan) from a Lender (Bank) to acquire a home. The FLISP subsidy reduces the amount of the Loan required from the Bank, thus rendering the monthly loan repayment instalments more affordable over the Loan repayment term.

Who qualifies?

The FLISP subsidy is a once off payment and is only available to a Qualifying Beneficiary (potential purchaser) who has also qualified for a Home Loan from a Bank to acquire a home and who satisfies the Qualifying Criteria.

Qualifying criteria for a FLISP subsidy

If you do not satisfy any one of these requirements you unfortunately cannot receive a FLISP subsidy.

You also need to be in a financial position to secure a Home Loan from a Bank.

*    RSA Resident: He or she is lawfully resident in South Africa (i.e. citizen of the Republic of South Africa or in possession of a permanent residence permit. Certified copies of the relevant documents must be submitted with the application).

*    Competent to contract: He or she is legally competent to contract (i.e. 18 years of age or older or legally married or legally divorced and of sound mind).

*    Not yet benefited from government assistance: Neither that person nor his or her spouse has previously derived benefits from the housing subsidy scheme, or any other state funded or assisted housing subsidy scheme which conferred benefits of ownership, leasehold or deed of grant or the right to convert the title obtained to either ownership, leasehold or deed grant.

*     Not yet owned a fixed residential property: A person who has never owned fixed     residential property may apply for a subsidy. Current residential property owners will not qualify for a FLISP subsidy.

In addition to the above requirements, any applicant must also satisfy the following general criteria:

•     Married or cohabiting: He or she is married (in terms of Civil Law or in terms of a Customary Marriage) or habitually cohabits with any other person. The word "spouse” includes any partner with whom a prospective beneficiary habitually cohabits.

Where an application is made for a subsidy on the basis of a legal marriage or cohabitation arrangement, it is required that the property must be registered in the names of both spouses in the Deeds Office. Documentary proof of the marriage and affidavits from both spouses in respect of cohabiting arrangements and customary marriages must be provided

*    Single with Financial Dependents: If not married, he or she must have proven financial dependents. A financial dependent refers to any person who is financially dependent on the subsidy applicant and who resides permanently with the housing subsidy applicant. Financial dependents include any or a combination of the following proven financially dependent persons of, and residing permanently with, the subsidy applicant:

*    Biological parents or parents-in-law;

*    Biological grandparents or grandparents-in-law;

*    Brothers/sisters under the age of eighteen years or, if older, who are proven financially dependent on the applicant;

*    Children under the age of eighteen years, i.e.:

*    Grand children

*    Adopted children.

*    Foster children

*    Biological children

*    Any of the above persons over the age of eighteen years who are still studying and who are financially dependent on the applicant; and

*    Extended family members who are permanently residing with the applicant due for example, to health problems and who are therefore proven financially dependent on the housing subsidy applicant.

Special Provision: It is a requirement that, in cases where housing subsidy applications are submitted by single persons with financial dependents, the particulars from the identification document of such dependents must be recorded on the application form and the information must be captured in the Housing Subsidy System. The following documents must accompany an application for a housing subsidy:

Certified copies of:

•    Birth certificates, bearing the thirteen digit identity number for children who do not have bar coded identity documents;

•    Bar coded identity documents of all persons who are claimed as part of the household;

•    Divorce settlement documentation (to prove custody of children) where relevant;

•    Affidavits for unions solemnized in terms of SA Civil Law and accompanied by sworn statements to prove the authenticity of the relationship to the applicants, where applicable; and

•    Court orders or orders issued by the Commissioner of Child Welfare to prove guardianship for foster children, where relevant.

Monthly household income: The gross monthly household income of his or her household must be between R3 501 – R15 000 per month.