This is what you need to know about the Flisp subsidy

THE GOVERNMENT-introduced Finance Linked Individual Subsidy Programme (Flisp) looks to close the gap in the home buying market and South African first-time home buyers are eligible to apply.

However, they need to have a single or joint gross monthly household income of between R3 501 and R22 000 to qualify, says Jackie Smith, head of product for ooba Group. Flisp was first introduced in 2012, but the recent budget speech announcement by Minister of Human Settlements Mmamoloko Kubayi-Ngubane that it would be delinked as a “home-loan only” option, coupled with an increase in the annual tax-free threshold for persons under the age of 65 (from R87 300 to R91 250), is set to fast-track homeownership for many hopefuls.

“These announcements are welcomed by the affordable housing market, especially our qualifying customers. Ensuring that a subsidy is no longer dependent on a home loan is exactly what the market needs.

“The subsidy ranges from R27 690 to R121 626 for an existing home or a home that still needs to be built (off-plan). “In addition, homeowners who purchased their first home in the past 12 months can also apply, should they meet the criteria,” Smith explains.

She says those purchasing their first home and requiring a mortgage can work with ooba Group to determine their eligibility through a prequalification.

“Here, we check their credit score, make sure their paperwork is in order and determine what finance amount they will be approved for by the banks (and the government) prior to submitting the paperwork to the National Housing Finance Corporation.”

Qualifying criteria for Fisp are:

• Proof of income.

• Proof of an approved home loan.

• Signed agreement of sale.

• A building contract and approved building plan (where applicable).

• A South African identity document.

• Identity documents for all occupants.

• A marriage certificate (where applicable).

THE GOVERNMENT’S Flisp subsidy is aimed at closing the gap in the home buying market. PICTURE: RODNAE PRODUCTIONS