National Minister of Human Settlements, Mmamoloko Kubayi announced today that the Finance Linked Individual Subsidy (FLISP) has been delinked and no longer just a mortgage only option. The FLISP programme is a housing subsidy for qualifying first-time home buyers to assist with purchasing a home.
The subsidy is paid directly to the bank or financial institution and will reduce your monthly loan instalments, making it more affordable to buy a home. Households with an income between R3 501 to R22 000 may qualify for the FLISP subsidy if they meet all the criteria. From 1 April 2022, persons who in the past could not qualify for FLISP, due to them not qualifying for a home loan or mortgage, will now be able to utilise other sources of finance to acquire a property, including the following:
● the beneficiary’s pension/provident fund loan,
● a co-operative or community-based savings scheme, i.e. stokvel,
● the Government Employees Housing Scheme,
● any other Employer-Assisted Housing Scheme,
● an unsecured loan,
● an Instalment Sale Agreement or Rent-to-own Agreement.
“This is exceptional news and a game changer for the affordable housing market,” says Western Cape Provincial Minister of Human Settlements, Tertuis Simmers. “We have been advocating for this revised FLISP for years and this is a true victory.” There has been a significant increase in both FLISP applications and approvals, with 3 695 applications having been approved by the Western Cape Department of Human Settlements (WCDoHS), since April 2020, to date. This was against a target of 1 800 between the 2020/21 and 2021/22 financial years.
“Furthermore, we’ve also partnered with external role-players such as financial institutions, conveyancing attorneys and property developers, and granted them access to the Housing Subsidy System (HSS) which allows them to capture and monitor the progress of applications, which drastically improved the turnaround times for processing these applications,“ says Minister Simmers. “We’re anticipating an influx of applications, and this is why we’re in the process of streamlining the system, so that there aren’t unnecessary and avoidable delays.”
“This is just further confirmation why our focus on affordable housing is extremely critical for not only Western Cape residents, but citizens throughout the country. With approximately 70% of our people employed, we understand that there are many that will never qualify for a fully State subsidised home, yet they still require some form of assistance from the State,” concludes Minister Simmers.