Department Of Human Settlements Flisp

The Finance Linked Individual Subsidy Programme (FLISP) for First Time Home Owners

The Finance Linked Individual Subsidy Programme(FLISP) was introduced by the Minister of Human Settlements in terms of the provisions of Section 3(5) of the Housing Act, 1997 (Act 107 of 1997) and took effect from 01 April 2005

What is FLISP?

The Finance Linked Individual Subsidy Programme (FLISP) is a subsidy instrument that assists qualifying households by providing a once-off down payment to those households who have secured mortgage finance to acquire a residential property for the first time.

How will FLISP assist a qualifying beneficiary?

FLISP assists qualifying beneficiaries who obtain mortgage finance from a bank to:
– Acquire ownership of an existing residential property.
– Obtain vacant serviced residential stands which are linked to house building contracts with home builders registered with the National Home builders Registration Council (NHBRC) or
– Build a new house with the assistance of a home builder registered with the National Home Builders Registration Council (NHBRC), on a serviced residential stand, that is ready owned by the beneficiary.

Who is FLISP targeted at?

Households whose gross income range is between R3 501 to R15 000 and are South African citizens or must hold a permanent residence permit.

What is the Subsidy Amount that one can qualify for?

Depending on their income level, a qualifying beneficiary will qualify for a subsidy of between R20 000 and R87 000 as it applies on a sliding scale.

How do I apply for FLISP?

You must be in the market looking for a house and should be able to secure a home loan / bond as it is a requirement to access the FLISP subsidy.
To apply you must contact or visit the Department of Human Settlements Helpdesk and The Bank

What is the Objective of FLISP?

The objective of the programme is to reduce the initial mortgage loan amount to render the monthly loan repayment instalments affordable over the loan payment term, or mortgage loan period, or can be used as a deposit to purchase the property.

THE QUALIFYING CRITERIA

The applicant should:
– Earn between R3 501 to R15 000.
– Be a South African citizen with a valid Identity Document, or be a permanent resident with a permanent residence permit.
– The applicant or his/her spouse must not have 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.
– Not have qualified for a government housing subsidy before.
– Not have owned a fixed residential property before.
– Where the 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 name of both spouses in the Deeds Office.
– Be competent to contract – over 18 years or legally married or legally divorced and of sound mind.
– Be married or cohabiting.
– Be single with financial dependents.
If the home loan application is declined by the bank then you will not be able to access the Finance Linked Individual Subsidy Programme (FLISP).
If you have already purchased a property, and the property has already been transferred into your name with effect from 01 April 2012 you will also be eligible to apply for FLISP provided that you meet the necessary requirements.
The subsidy is also available to civil servants provided that their total household income including their housing allowance does not exceed R15 000 per month, excluding overtime and commission.

For enquiries please contact the KZN Department of Human Settlements on the following numbers:
031 336 5300 / 031 336 5396 / 031 336 5277 / 031 336 5262 / 031 336 5285 / 031 336 5418 or visit our offices on the 9th floor, Samora House, 2 Samora Machel Street (Aliwal Street), Durban. Website: www.kzndhs.gov.za