Human Settlements Minister Lindiwe Sisulu said the Finance Link Individual Subsidy Programme (FLISP) will change the lives of South Africans entering the property market for the first time.
The FLISP is aimed at giving low income earners access to home loans. Only persons earning between R3 501 and R22 000 will qualify to have their home loans subsidised.
“Those persons qualifying are urged to approach the bank for loans. The type of houses that we are able to finance through this programme have the potential to change the face of the country, especially for the low income earners.
“The bank will do this by mobilising a wide range of funding and providing bonds for what would normally have been the un-bankable sector,” said the Minister.
The department has also established the Human Settlements Development Bank (HSDB) which will be used to assist first time buyers in the process.
The bank will use grant funding from banking and non-banking sources, in order to give South Africans access to affordable housing.
“We look towards the Housing Bank to play a central role in accelerating delivery of catalytic or mixed-income housing projects, affordable rental stock (otherwise called social housing) and possibly student accommodation.
“The bank will therefore be the key and central funding institution for the human settlements development sector and the market,” she said.
You must meet the following criteria to qualify for the FLISP:
Be a first time home buyer
South African citizen with a valid bar-coded identity document (ID), or if a Permanent Resident must have a valid bar-coded permit
Be over 18 years old and competent to legally contract
Have financial dependents
Must never have benefitted from any Government Housing Subsidy Scheme before
If you qualify, click here to access the FLISP application form.