FLISP Overview

FLISP allows qualifying beneficiaries to reduce the initial mortgage loan amount or augment the shortfall between the qualifying loan and the total house price bringing the eventual home loan instalment to an affordable amount over the loan repayment period.

The South African Constitution enshrines the right of everyone to have access to adequate housing; and makes it incumbent upon the State to take reasonable legislative and other measures within its available resources to achieve progressive realization of this right.

In response to this imperative, Government, in terms of the Housing Act 1997 (Act No 107 of 1997), introduced a variety of National Housing Subsidy Programmes which provide the poor and the low- to middle income households with access to adequate housing.

Amongst the many programs, Finance Linked Individual Subsidy Program (FLISP) is specifically intended for the market segment whose income is inadequate to qualify for a home loan, but exceeds the maximum limit applicable to access Government's 'free basic house' subsidy scheme. This market segment, generally known as the 'affordable/gap' market, earns between R3 501 and R22 000 per month. Households in this segment, if buying a home for the first time, may apply for a FLISP subsidy.

In September 2011 the National Human Settlement Department revised the implementation strategy of FLISP from its original 2005 form, and tasked the NHFC as its implementing agent responsible for facilitating the roll out FLISP by centralising its administration and processing together with Provincial Departments.

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