What is FLISP?

FLISP is Finance Linked Individual Subsidy Programme which provides a subsidy to qualifying beneficiaries who have secured mortgage finance to acquire an existing house or a vacant residential serviced stand linked to a house construction contract. The subsidy is paid to your bank or financial institution in order to reduce the initial mortgage loan amount to render the monthly loan repayment installments affordable over the loan repayment term and to make good on any shortfall between the qualifying loan amount and the total product price.

The FLISP subsidy can assist you to:

• Purchase an existing residential property for the first time.
• Purchase a vacant serviced residential stand(ie. plot) which is linked to a house-building contract via the department.
• Build a new house with the assistance of a builder registered with the NHBRC, on a serviced residential stand(ie. plot) that you already own.

What is the qualification criteria to apply for a FLISP subsidy?

• The applicant must be a South African citizen or must hold a permanent residence permit.
• The applicant must be 18 years of age or older or legally married or legally divorced and of sound mind.
• The applicant’s current total household income must be between R3 501 and R22 000 per month, excluding overtime and commission but includes allowances.
• The applicant or his/her spouse must not have previously derived benefits from the housing subsidy scheme or any other state funded or assisted housing subsidy scheme which conferred benefits of ownership, leasehold or deed of grant.
• The applicant must not be owning any other residential property nor previously owned fixed residential property.
• Where the application is made for a subsidy on the basis of a legal marriage or cohabitation arrangement, it is required that the property must be registered in the name of both spouses in the Deeds Office.
• The applicant may be single but with proven financial dependents.

Any individual who has already purchased a property which has already been transferred into his or her name with effect from 01 April 2012, 01 April 2014 or 28 July 2018 will also be eligible to apply for the subsidy provided that they meet the requirements, of the respective policy revisions.

What is the subsidy amount that one can qualify for?

The subsidy amount depends on the income of the applicant.The range is between R27 960 – R121 626. To view your possible subsidy amount CLICK HERE.

How do I apply for the Finance Linked Individual Subsidy Programme?

Once your home loan is approved, a FLISP application can be discussed with your bank, financial institution, the Department of Human Settlements or your nearest municipality.
Interested applicants can also visit the Department of Human Settlements Helpdesk at 11 floor Eagle Building (munchies passage), 353–356 Dr Pixley KaSeme (former West street), Durban.
For enquiries please contact the KZN Department of Human Settlements on the following numbers:
031 336 5396 / 031 336 5262 / 031 336 5277 / 031 336 5285 / 031 336 5418 or visit our offices on the 11th floor, Eagle Building, 353–356 Dr Pixley KaSeme (former West street), Durban.