First Home Finance (FLISP)
Government-backed housing subsidy for first-time buyers in South Africa. Boost approval with a subsidy from R30 001 to R130 000. Secure your first home now.
The First Home Finance programme in South Africa, previously known as FLISP, is designed to make home ownership achievable even for those with a credit score below the typical bank threshold of 610. With government backing, it’s ideal for first-time buyers and low-to-moderate-income earners who need extra help to get their foot on the property ladder. Depending on your monthly income, the subsidy ranges from R30 001 to R130 000. This can be used directly as a deposit or towards the total loan, greatly increasing bank approval chances and lowering interest.
Qualifying for First Home Finance requires a monthly household income from R3 501 to R22 000. Applicants must be South African citizens or permanent residents and should not have previously received any government housing subsidy. Additionally, you need to be buying your first property, over 18 years old, and either married, cohabiting, or a single parent with financial dependants. The lower your income, the greater the subsidy amount you can enjoy towards your new home.
How to Apply for First Home Finance
To apply, you should fill in the dedicated online application, which takes just a few minutes. Submit your proof of income and South African ID. Let your chosen home loan provider know you’re applying for the subsidy. Their consultants will handle paperwork and keep you updated on your application status until the subsidy is granted, so you can proceed with your purchase.
Advantages
This home loan subsidy enables people with low credit scores to become homeowners, thanks to government backing. The deposit provided helps reduce overall loan costs. Using the subsidy for a larger deposit can further lower your interest rate. It’s a quick and hassle-free application process, with experts guiding you step by step.
Disadvantages
Since you must not have owned property before or previously received a government housing subsidy, the offer is strictly limited to true first-time buyers. Additionally, approval depends on meeting all qualifying requirements, and the process may take time depending on demand or document submissions.
Our Verdict
First Home Finance offers a practical, affordable way for South African first-time buyers to access the property market, even with less-than-ideal credit. The sliding scale subsidy and easy process make it a standout choice. With the right preparation and paperwork in place, it’s a strong option to consider if you meet the criteria.
