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FLISP - All Your Questions Answered

What is FLISP?

FLISP stands for Finance Linked Individual Subsidy Programme. This programme provides financial assistance to those wanting to purchase property. FLISP was introduced by the Department of Human Settlements in 2012. As of April 2022, some incredible changes have been announced to FLISP which will make it easier than ever before to become a homeowner. Between April 2020 and April 2022, 3695 FLISP applications were approved by the Western Cape Department of Human Settlements. This number is only set to grow.

Who Qualifies for FLISP?

You can qualify for FLIPS if:

You are a South African citizen or you are a permanent resident
You earn between R3,501.00 - R22,000.00
You have not received a government housing subsidy before
You have never owned fixed residential property before
You are of sound mind and competent to contract
You are over 18 years of age
You are married or cohabiting
You are single with financial dependents

With the new changes to the Finance Linked Subsidy Programme, you don't need to have a home loan to qualify.

I Am Married in Community of Property - Does My Spouse Also Need to Apply?

Yes. When you are married in community of property, both you and your spouse will need to apply because the property will be registered in both of your names. Before the April 2022 changes, this used to be a big hurdle for couples who needed FLISP support because both needed to qualify for a bond. However, if one partner had a bad credit score then the FLISP application would fail. Thankfully, this is no longer a requirement so married couples in community of property are no longer at a disadvantage.

Can Cash Buyer Qualify for FLISP?

No. To qualify for FLISP, your home purchase must be linked to some form of financing solution. This source of finance no longer needs to be an accredited financial institution and alternative financing is now an option. The following forms of financing are recognised by FLISP:

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

Is FLISP a Loan?

No. The money given to you when you successfully apply for FLISP is not a loan. It is a subsidy. That means no one will ever ask you to pay this money back.

How Much FLISP Do I Qualify For?

FLISP uses multiple levels to determine how much money you will receive as part of your housing subsidy. The amount you receive will depend on how much money you earn. However, it's important to remember that the income level is determined by your household income - that means it is determined by the combined income of both you and any other earner in your household (husband, wife, adult child, etc.)

Step Number	Income Band		Quantum
Step Number	Lower	Higher	Quantum
1	R3,501.00	R3,700.00	R121,626.00
2	R3,701.00	R3,900.00	R120,585.00
3	R3,901.00	R4,100.00	R119,545.00
4	R4,101.00	R4,300.00	R118,504.00
5	R4,301.00	R4,500.00	R117,463.00
6	R4,501.00	R4,700.00	R116,422.00
7	R4,701.00	R4,900.00	R115,382.00
8	R4,901.00	R5,100.00	R114,341.00
9	R5,101.00	R5,300.00	R113,300.00
10	R5,301.00	R5,500.00	R112,259.00
11	R5,501.00	R5,700.00	R111,219.00
12	R5,701.00	R5,900.00	R110,178.00
13	R5,901.00	R6,100.00	R109,137.00
14	R6,101.00	R6,300.00	R108,097.00
15	R6,301.00	R6,500.00	R107,056.00
16	R6,501.00	R6,700.00	R106,015.00
17	R6,701.00	R6,900.00	R104,974.00
18	R6,901.00	R7,100.00	R103,934.00
19	R7,101.00	R7,300.00	R102,893.00
20	R7,301.00	R7,500.00	R101,852.00
21	R7,501.00	R7,700.00	R100,811.00
22	R7,701.00	R7,900.00	R99,771.00
23	R7,901.00	R8,100.00	R98,730.00
24	R8,101.00	R8,300.00	R97,689.00
25	R8,301.00	R8,500.00	R96,648.00
26	R8,501.00	R8,700.00	R95,608.00
27	R8,701.00	R8,900.00	R94,567.00
28	R8,901.00	R9,100.00	R93,526.00
29	R9,101.00	R9,300.00	R92,486.00
30	R9,301.00	R9,500.00	R91,445.00
31	R9,501.00	R9,700.00	R90,404.00
32	R9,701.00	R9,900.00	R89,363.00
33	R9,901.00	R10,100.00	R88,323.00
34	R10,101.00	R10,300.00	R87,282.00
35	R10,301.00	R10,500.00	R86,241.00
36	R10,501.00	R10,700.00	R85,200.00
37	R10,701.00	R10,900.00	R84,160.00
38	R10,901.00	R11,100.00	R83,119.00
39	R11,101.00	R11,300.00	R82,078.00
40	R11,301.00	R11,500.00	R81,038.00
41	R11,501.00	R11,700.00	R79,997.00
42	R11,701.00	R11,900.00	R78,956.00
43	R11,901.00	R12,100.00	R77,915.00
44	R12,101.00	R12,300.00	R76,875.00
45	R12,301.00	R12,500.00	R75,834.00
46	R12,501.00	R12,700.00	R74,793.00
47	R12,701.00	R12,900.00	R73,752.00
48	R12,901.00	R13,100.00	R72,212.00
49	R13,101.00	R13,300.00	R71,671.00
50	R13,301.00	R13,500.00	R70,630.00
51	R13,501.00	R13,700.00	R69,590.00
52	R13,701.00	R13,900.00	R68,549.00
53	R13,901.00	R14,100.00	R67,508.00
54	R14,101.00	R14,300.00	R66,467.00
55	R14,301.00	R14,500.00	R65,427.00
56	R14,501.00	R14,700.00	R64,386.00
57	R14,701.00	R14,900.00	R63,345.00
58	R14,901.00	R15,000.00	R62,304.00
59	R15,001.00	R15,200.00	R61,264.00
60	R15,201.00	R15,400.00	R60,223.00
61	R15,401.00	R15,600.00	R59,182.00
62	R15,601.00	R15,800.00	R58,141.00
63	R15,801.00	R16,000.00	R57,101.00
64	R16,001.00	R16,200.00	R56,060.00
65	R16,201.00	R16,400.00	R55,019.00
66	R16,401.00	R16,600.00	R53,979.00
67	R16,601.00	R16,800.00	R52,938.00
68	R16,801.00	R17,000.00	R51,897.00
69	R17,001.00	R17,200.00	R50,856.00
70	R17,201.00	R17,400.00	R49,816.00
71	R17,401.00	R17,600.00	R48,774.00
72	R17,601.00	R18,000.00	R47,734.00
73	R18,001.00	R18,200.00	R46,693.00
74	R18,201.00	R18,400.00	R45,653.00
75	R18,401.00	R18,600.00	R44,612.00
76	R18,601.00	R19,000.00	R43,571.00
77	R19,001.00	R19,200.00	R42,531.00
78	R19,201.00	R19,400.00	R41,490.00
79	R19,401.00	R19,600.00	R40,449.00
80	R19,601.00	R19,800.00	R39,408.00
81	R19,801.00	R20,000.00	R38,367.00
82	R20,001.00	R20,200.00	R37,327.00
83	R20,201.00	R20,400.00	R36,286.00
84	R20,401.00	R20,600.00	R35,245.00
85	R20,601.00	R20,800.00	R34,205.00
86	R20,801.00	R21,000.00	R33,164.00
87	R21,001.00	R21,200.00	R32,123.00
88	R21,201.00	R21,400.00	R31,082.00
89	R21,401.00	R21,600.00	R30,042.00
90	R21,601.00	R21,800.00	R29,001.00
91	R21,801.00	R22,000.00	R27,960.00

Source: Western Cape Government FLISP Brochure

What Can I Use My FLISP Subsidy On?

Your FLISP subsidy can be used to reduce the size of your home loan, pay for the deposit, cover the transfer costs, and even pay for the bond registration costs.

Can I Get FLISP If I Own a Vacant Plot?

If you are fortunate enough to own a plot of land without any home built on it, you can qualify for FLISP. However, you must build a new house on this land with the assistance of an NHBRC registered builder.

How Do I Apply for FLISP?

Applying for FLISP is very easy and there are 4 ways to do so:

Visit the Western Cape Department of Human Settlements at 27 Wale Street, Cape Town City Centre.
Call the Help Desk on 021-483-6488 Monday to Friday between 07h30 & 15h00.
Visit their official website.
Email human.settlements@westerncape.gove.za

Author: Paul Wasson

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