ooba Home Loans – First Home Finance
Government-backed subsidy for first-time buyers with credit challenges and modest income. Deposits up to R130 000. Lower rates possible. Fast online process.
If you’ve struggled to get a home loan approval due to a low income or below-average credit score, the First Home Finance subsidy (previously FLISP) is available to help South Africans achieve homeownership. This subsidy specifically targets first-time buyers who may not meet the strict bank lending criteria. With amounts ranging from R30,001 up to R130,000 depending on income, the subsidy can be used as a deposit or as a lump-sum payment into your home loan, which may make it easier for the bank to approve your application even if your credit score is under 610.
The interest rate and term are ultimately determined by the lender, but having the subsidy can strengthen your position to negotiate better rates. To be eligible, your household income must be between R3,501 and R22,000 per month, and you should not have previously received a government housing subsidy or owned a property.
How to Apply Step by Step
- Check your eligibility based on income, citizenship, and property ownership.
- Gather documents such as ID, proof of income, and details of your dependents.
- Fill out the online application via ooba Home Loans, which takes just minutes.
- Your application is processed and paperwork is submitted on your behalf.
- Track your application status and receive updates from the ooba team.
Pros of First Home Finance Subsidy
The programme allows more South Africans to access home loans, even with low credit scores.
Applicants benefit from a significant deposit, thus lowering monthly repayments and interest costs.
Cons of First Home Finance Subsidy
The subsidy is only available to those within a specific income bracket, so not everyone qualifies.
It can only be used for your first home purchase, which limits repeat use opportunities.
Verdict
The First Home Finance subsidy enables many first-time buyers to make homeownership possible in South Africa, especially those with difficulties securing approval from banks. If you fit the qualifying profile, it’s an excellent option to bridge the gap and achieve your property dreams without the obstacles posed by low credit scores.
