You will need to qualify for a Loan from a Lender (Bank)
o you will thus need to satisfy the qualifying lending criteria of the Bank of your choice, based on your affordability and credit rating criteria.
• A FLISP Subsidy is a once-off payment in favour of Qualifying Beneficiaries who have not previously received any other state-assisted housing.
• A FLISP Subsidy may not be used to make an Access Bond Facility available to an Applicant.
• A FLISP Subsidy is available to first time home owners whose monthly income is between R3 501 and R22 000 per month.
• A FLISP Subsidy can be used only to reduce the principal Loan amount in order to make the Home Loan repayment instalments affordable.
• If you resell your property before 8 years there are certain conditions applicable, the main condition is that the portion of the FLISP Subsidy is to be refunded by the seller:
This refund will decrease annually on the following basis:
|YEAR||% OF ORIGINAL SUBSIDY AMOUNT TO BE REFUNDED|
Should the Beneficiary be able to purchase a residential property within 2 years, the amount retained can be transferred to the new loan application so as to reduce the new loan amount. Important to note that the beneficiary loses this right after 2 years if not exercised.