04 July 2022
FLISP: The 2022 Guide to the Government Housing Subsidy
What is FLISP?
FLISP (Finance Linked Individual Subsidy Programme) was developed by the Department of Human Settlements to enable affordable home-ownership opportunities for South Africans.
The subsidy is offered to permanent residents of South Africa earning between R 3 501.00 and R 22 000.00 per month. This is the market segment, whose income exceeds the maximum income for a 'Free House' Housing Subsidy Scheme but is insufficient to qualify for home loan finance from independent banks and lenders.
Who qualifies for a FLISP subsidy?
Households with a monthly income between R3 501 to R22 000 may qualify for the FLISP subsidy if they meet all the criteria. The subsidy you qualify for depends on your income and ranges between R30,001 – R130 505.
Do you qualify for FLISP?
Take a look at the below basic requirements to determine whether you qualify for FLISP:
- South African citizen with a valid ID; or permanent residents with a valid permit.
- Over 18 years and competent to legally contract.
- Never benefited from a Government Housing Subsidy Scheme before.
- Must have an ‘Approval in Principle’ of a home loan from an accredited South African financial institution such as SA Home Loans.
- Be a first-time home buyer, earning from R 3 501.00 to R 22 000.00 monthly.
Please note that the subsidy is for residential properties in formal towns where transfer of ownership and mortgage bond registration are recordable in the Deeds Office.
Is it possible not to qualify for FLISP?
Yes. If you do not meet the specified qualifying criteria and requirements, you will not be considered for FLISP.
The FLISP application process: how to apply for FLISP subsidy in 2022
The Department of Human Settlement administers and processes applications for FLISP subsidies.
Once you are pre-approved for a home loan, apply for a FLISP subsidy at your local Department of Human Settlement office, or call the National Housing Finance Corporation on 0860 011 011.
What documents do you need when applying for FLISP?
The following documents are required as supporting documents when applying for Finance Linked Individual Subsidy Programme (FLISP). Please ensure you provide certified copies of each.
- RSA Bar Coded Identity Document (ID)
- Bar Coded Permanent Residence Permit (where applicable)
- Birth Certificates/ RSA IDs of all financial dependents (where applicable)
- Proof of Foster Children Guardianship (where applicable)
- Marriage Certificate, Civil Union Certificate or Cohabiting Affidavit or Proof of Partnership (applicable)
- Divorce Certificate (where applicable)
- Spouse's Death Certificate (where applicable)
- Proof of Monthly Income
- Home Loan Approval in Principle/Grant Letter from an accredited Lender/ Bank
- Agreement of Sale for the residential property
- Building Contract and Approved Building Plan (where applicable)
- Affidavits are required for informal marriages solemnised under the South African Civil Law, accompanied by sworn statements to prove the authenticity of the relationship.
FLISP subsidy 2022 application form
Click here to download the 2022 FLISP application form.
How to check your FLISP application status
Contact your relevant DHS office directly for details regarding the status of your subsidy application. It takes the NHFC about 7 days to process your subsidy application from receiving a fully completed application form with all required supporting documents.
How long does FLISP take to pay out?
This process generally takes about 7 days, depending on your application status (above).
What are your options when choosing a house to buy?
You have two options for purchasing a residential property with the FLISP subsidy;
- You can choose a house from the various FLISP Accredited Development Projects or
- Open Market – You can select a new or old house that meets the FLISP criteria in any area of your choice.
To find out more about the FLISP Accredited Development Projects, contact any Human Settlement Office closest to you. The National Housing Finance Corporation can also provide you with information about FLISP Projects in all provinces across South Africa.
How can SA Home Loans assist you in this process?
When applying for the FLISP subsidy, you will need to provide 'proof of home loan grant' or an 'approval in principle' from an accredited lender, such as SA Home Loans.
Submitting a home loan application
As the Lender, we will assess your home loan application based on our lending criteria. Upon us granting the home loan approval, you or your property agent/developer complete the FLISP application form obtainable from the Provincial Department website and submit the application and supporting documents to your relevant Provincial Department.
The Provincial Department will process the FLISP application should your home loan be approved. If the outcome of the FLISP application is positive, the subsidy will be granted, and if negative, the application will be declined. You may continue with the transaction without FLISP if you qualify for a home loan.
Find out what you can afford without FLISP using our home loan affordability calculator.
What happens to your home loan if you don't qualify for FLISP?
Should you not qualify for a FLISP Subsidy, you may continue the home buying process with SA Home Loans. We conduct our credit and affordability assessments on home loan applications based on the National Credit Act (NCA) criteria.
Important contact details for FLISP applications:
National Housing Finance Corporation (NHFC)
Address: Isle of Houghton, Old Trafford 3, 11 Boundary Road, Houghton
Contact Number: 0860 011 011
Email address: [email protected]
Estate Agency Affairs Board (EAAB)
Contact Number: 087 285 3222
National Credit Regulator (NCR)
Contact Number: 0860 627 627 / 011-554 2600
Provincial Department of Human Settlements
You can find contact details for your relevant DHS office on their website: www.dhs.gov.za