How FLISP works

FLISP was developed to enable first time home-ownership to households in the 'affordable or gap' market, that is, people earning between R3 501 and R22 000 per month. Individuals in these salary bands generally find it hard to qualify for housing finance; their income is regarded as low for home loan (mortgage or pension/provident backed loan), but too high to qualify for the government 'free-house' subsidy scheme.
Depending on the applicant's gross monthly income, their once-off FLISP subsidy qualifying amount may vary between R27 960 and R121 626, as defined in the FLISP Subsidy Quantum.

SUBSIDY QUANTUM Example 1 is based on an R9 000 p/m income-band, where the individual after the Lender/Bank's credit and affordability assessment, based on the National Credit Act (NCA) criteria, qualified for R300 000 home loan:


FLISP REDUCES the home loan (mortgage or pension/provident backed loan) amount to render the monthly loan repayment instalments affordable; (payment made to home loan account)
Property Price
Bank HL Approval
Less FLISP as a deposit
EVENTUAL HOME LOAN AMOUNT
R300 000
R300 000
R93 526
R206 474

SUBSIDY QUANTUM Example 2 is based on an R9 000 p/m income-band, where the individual after the Lender/Bank's credit and affordability assessment, based on the National Credit Act (NCA) criteria, qualified for R206 474 home loan:


FLISP AUGMENTS shortfall between the qualifying loan amount and the total product price; (payment made to transfer attorneys)
Property Price
Bank HL Approval
FLISP as HL top up
EVENTUAL HOME LOAN AMOUNT
R300 000
R206 474
R93 526
R206 474

FLISP subsidy is for residential properties in formal towns, where transfer of ownership and registration of mortgage bond is recordable in the Deeds Office.

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