How will South Africa’s new FLISP subsidy work?

April 6, 2012 | 587 Comments

There has been a lot of interest in the design of the new housing subsidy announced by President Zuma in his State of the Nation Address in February, and many questions have been coming into this site.  This is to be expected, over twenty percent of South Africa’s population earns in the income bracket defined by the new subsidy – this is the so-called gap market where people have been struggling to get housing they can afford. According to the President’s speech, the new subsidy went into effect on 1 April 2012.  It is unfortunate that nothing has been published on the government’s websites to explain the policy and how it will work.  No official policy has been released – it must still be approved by the meeting of the Minister with the nine provincial MECs.  Thankfully, a very helpful official at the National Department of Human Settlements offered me answers to some of the questions.

1.         How will it work?

Essentially the subsidy is planned to work like this: A household earning between R3501-R15000 per month needs to find a newly built house for sale at a price of R300 000 or less, and then apply to a bank for a mortgage to buy that house.  If the household qualifies for the mortgage, they will be allowed to complete a subsidy application form, which the bank will then submit to the National Housing Finance Corporation (NHFC).  The NHFC is the National Implementing Agent for the subsidy, and is entering into agreements with the nine provinces and various banks to make these processes work.  Once the NHFC has approved the subsidy application (the amount you qualify for is in this table), the money will be paid to the seller either directly by the NHFC or via the bank, and the borrower will then get a mortgage loan from the bank for the remaining amount of the purchase price, which they’ll then repay over time.

In the short term, the subsidy will only apply to newly built houses that cost less than R300 000.  This means that the buyer cannot simply find any house on the market – they need to find a new one, in a new project that is underway. While the government has also introduced a new incentive for developers to build housing for this price, its not clear if there will be much ready for sale when the subsidy scheme comes into effect on 1 April 2012.  A quick scan of the Internet found some houses costing less than R300 000, but not many:

  • The least-expensive home available from Cosmpolitan projects is a 40m2 unit in a project called Beverly Hills in Palm Springs, Gauteng.  This is in the range, costing R278 000.  All of Cosmpolitan’s other projects are above R300 000 per house, however.  (www.cosmojhb.co.za/now_selling_page.html)
  • RBA Homes has four developments listed.  The cheapest of these is Bram Fisherville – 40m2 full title, free standing home at R327 400 (http://rbahomes.co.za/bram-fischerville-listings)
  • Calgro M3 (www.calgrom3.com) seems to be working hard to offer housing below the R300 000 range.  In Gauteng, they have a sectional title development in Fleurhof, with a 40m2 and a 43m2 unit both going for under R300 000.  In Jabulani Heights, a development in Soweto, Gauteng, prices start at R242 000.  Scottsdene is another Calgro M3 development, in the Western Cape, where prices are envisaged to range between R240 000 – R340 000 for apartments.  Freestanding houses will start from R360 000.

Its not clear if this R300 000 price limitation is inclusive or exclusive of VAT.  This is a particularly important issue – worth up to R42 000.

2.         How much is it worth?

The subsidy works on a sliding scale for households earning between R3501 – R15 000 per month. Households with lower incomes will qualify for more subsidy, and those with higher incomes qualify for less.  The subsidy table can be downloaded here.

The subsidy is only available, however, if the applicant is also accessing mortgage finance.  Households who finance their housing with a pension backed loan or a housing microloan will not be able to access the subsidy.  While the subsidy only applies to new houses delivered in new projects, this limitation is unlikely to make much difference. By virtue of the price of new housing, the subsidy will only go to households at the upper end of the income spectrum.  Households earning less than about R8000 per month are unlikely to afford the properties available even with the new FLISP subsidy.  Hopefully, once the programme has been rolled out, individual applications to purchase existing properties in the resale market, will be entertained.  The Department has promised this – it is only through the resale market, where far many more houses costing less than R300 000 can be found, that lower income households in the target market will be able to benefit from the subsidy.

Even if the subsidy is made available for buying houses on the resale market, however, the requirement that the subsidy be linked to mortgage finance will undermine the breadth of the population that is able to access the subsidy.  Certainly there are households in South Africa who earn more than R3500 per month (so, are ineligible for an RDP housing subsidy) but whose income is erratic or informal, making them ineligible for a mortgage.  Domestic workers, for example, or taxi drivers, farm labourers, spaza shop owners and others all fall into this category.  In order to access a mortgage loan, they would need a payslip, and to be able to enter into a twenty-year commitment to make regular monthly payments.  Without these, access to a mortgage is unlikely.  And without access to a mortgage, they would be unable to access the subsidy.  This creates, perhaps, a new “gap” market, between those able to access housing in terms of the RDP subsidy programme, and those able to access the new FLISP subsidy.

3.         What can individuals do to access the subsidy?

This is the most difficult question to answer – and it’s a real problem that there is no information available on the website.  Ultimately, buyers who fall in the eligibility range have to first find a house – so, contact the developers in your area and ask them how they plan to deliver to this opportunity.  Then you have to build the network of finance – bringing in your savings (if you have any), applying for and being approved for a mortgage, and then, with the assistance of your bank, applying for the subsidy from the NHFC.  This is a complicated process, and hopefully the developers, banks and NHFC will provide assistance to help first time homebuyers meet their housing needs.  It also offers an opportunity for estate agents working in this market to develop their skills and improve their understanding of how the subsidy works and how it can be accessed.  In the meantime, I urge everyone to give the NHFC a call so that they understand the pressure they are under to deliver: 011-644-9800.  The National Department of Housing’s telephone number is 0800-1-46873.  Please write and tell me if they give you any more information!

DISCUSSION THREADS

  1. Sampson , 08 April 2012

    i am earning less than R8000pm, that means wont be getting a government sudsidies anytime soon since jouburg run out of low cost houses prices ranges from R300000.00.

    what does one needs to do now??

    • Kecia , 09 April 2012

      Hello Sampson. You’re probably right. With an income of R8000 (and assuming you have no other credit outstanding) you might be able to afford a mortgage of about R232 000, paying R2400 per month over twenty years at an interest rate of 11% (I’m assuming a rate of prime + 2% just to be conservative – if you were able to get prime interest of 9%, then your mortgage affordability would increase to about R266 000). At R8000 per month you’d be eligible to apply for a subsidy of R57 300. So, if you qualify for 11% interest at the bank, your total housing affordability would be R232 000 + R57 300 = R289 300. If you could manage to get your mortgage loan at 9% interest, however, you your total housing affordability could be R266 000 + R57 300 = R323 300. That’s great, but what we don’t know is if the R300 000 price maximum is inclusive or exclusive of VAT. If its inclusive of VAT, then you’re fine – except that there won’t be much housing available for R300 000 including VAT. If its exclusive of VAT, it is likely that most houses will be priced at R300 000 + 14% = R342 000, which means that even at 9% interest you won’t be able to afford the product price. This is really confusing. Please go to the bank – visit all the banks you know – and test your eligibility for a mortgage loan and the interest rate at which they’ll give you the loan. Banks compete, so you may find that one may give you a lower rate in order to get you as a client. Also make sure that you can afford not only the monthly payment as it is now (for you, it would be R2400), but also what it may become should interest rates rise. We’re at a low point in our interest rate cycle and many people think it will eventually go up. When it does, your monthly repayment obligation will increase. You have to make sure you can afford that.

      Of course, the real solution to your problem would be if the new FLISP subsidy were available to individuals wanting to buy homes on the resale market. Then you’d be able to buy a house for less than R300 000, and it would be more within your affordability, possibly costing less per month, depending on its price. Maybe that’s what you should do anyway, and just forgo the subsidy – see if you can find a house on the resale market that you can afford. There aren’t many, but I’ve seen some older houses, or inner city flats for sale more in the R200 000 market and below. Hopefully the Department of Human Settlements will change their policy soon to allow people to buy houses on the resale market. If they don’t, they won’t be helping people other than those at the high end of the FLISP target market.

      • Rashia , 24 April 2012

        Hi there kecia

        what about the people that pay less then R3500 that cant even afford to stay in a seperate entrance cause they need to do allot with they money why cant the bank help these peoples and maybe let them pay R500 to the bank every month or why cant the Government one time take all that money and built free houses for people who dont have and let them pay rent every month

        • Kecia , 27 April 2012

          Hi Rashia. You make a very interesting point: you’re prepared to pay towards your housing even though you earn less than R3500. This is something the government hasn’t thought about. In principle, you should be able to access a house for free. As you are surely aware, however, we’re not building these houses fast enough and the waiting list is very long. The Department of Human Settlements is currently going through a policy re-think. I wonder if other people would be willing to pay if it meant that they could access housing more quickly.

          • shona , 03 July 2012

            Hi kercia, Im blacklisted and Salary is R4700 – R5700. Huband not blacklisted Salary R4000- R5000. Do we qualify for any housing Subidy? We renting at the moment R2500 and feel like we cud have paid bond for our own house.

          • Kecia , 09 July 2012

            Shona, you have to resolve your credit situation before you can apply for mortgage finance to buy a house. The National Credit Regulator offers a useful brochure on managing your finances, which also discusses how you apply for debt counselling – you can download the brochure from here: http://www.ncr.org.za/publications/brochure5.pdf Between you and your husband, it looks like you could qualify for a FLISP subsidy, and also for mortgage finance, if it is put into your husband’s name as he is not blacklisted. But you still need to clear your own credit situation – and if you are still in debt, this will limit the amount of credit for which you can qualify. I think you need to clarify this with your bank, however, and also with the National Housing Finance Corporation who manage the FLISP. Their number is 011-644-9800. Good luck.

          • Jermaine martin , 10 November 2013

            Jermaine martin i earn less than R3500pm.i applied for subsidy cape town.i would like to tell president the application is taking for ever at human settlement.the owners want money.it takes 2 years.come on mr president.speed up the aproval tel 0712955264

          • Kecia , 14 November 2013

            Hi Jermaine – you’re right: government subsidised housing applications do take forever! Its terribly frustrating. Have you applied for an individual subsidy that you want to use to buy a house on the resale market? I’m afraid there’s not much I can do – there are very many people in your situation. Good luck.

          • Cindy , 30 December 2013

            Good day

            I have applied for a government house a couple of months ago, please let me know how this procedure plays out hence i havent recieved a reply, should i go into housing every couple of weeks to find out how far my application is?

          • Kecia , 09 January 2014

            Hi Cindy – the government housing process takes quite a long time. If you are earning a household income of less than R3500 per month, and you applied for the RDP subsidy, then the process could take years. Its a good idea to follow up though – just to make sure the application is being dealt with. If you applied for the FLISP subsidy (you earn a household income of R3501-R15000) then the National Housing Finance Corporation, which administers the scheme, has stricter timeframes that it has to abide by. You can follow up on a weekly basis with them, on their landline number 011-644-9800 or by email: flisp@nhfc.co.za.

      • kay , 29 June 2014

        Hi kecia I am getting married in a few months, we have one child and already expecting another. We’ve both recently started working. Im earning R4500 which and he’s’earning R2500. We have found a newly built house under R300 000 but we don’t know if the subsidy will be paid out fast enough hence we haven’t applied and we don’t know wherther to wait and apply after the wedding ?Will our chances of getting a subsidy be greater and faster? We’ve been working for less than six months but urgently need a house so even with the subsidy will the bank approve us for a loan for the remaining balance we can afford a monthly repayment of R2500-R3000

        • Kecia , 29 June 2014

          Congratulations on your engagement Kay! That’s lovely news. I understand your urgency to get a house, but I think you’re going to have to revise your idea of what you can afford. The bank is unlikely to let you pay more than 25% of your combined household income of about R7000 towards your bond. This means you might be able to qualify for a loan of about R164 000. Add to this the FLISP subsidy (I’m guessing you might qualify for about R63 000), and the most you could afford is R227 000. This means you’ll need to find a house on the resale market for this amount. I don’t think your wedding will make a difference to your eligibility, especially since you have children. Find a house in your price range, put in an offer to purchase conditional on accessing the subsidy and a loan, and then go through the process – first applying for the loan (conditional on the subsidy) and then getting the bank to help you apply for the subsidy. If you push, calling often, the process shouldn’t take too long. Once the application gets to the NHFC, it should take 7 days. Good luck.

    • B van Wyk , 01 March 2013

      I have read and understood this whole document. i would like to make the president aware that yet again he manages to screw us over. i am a single mother with two children. please show me where to find a house of R 300 000 that is newly built. close to my children’s school. we seem to be in a position that will only allow us to pay off other peoples bonds. At this rate i will never be able to own my own home. after paying for my rent and basic Necessities i have no money left, cause my rent is costing me R 5500 per month. this is to live close to my children’s school and for them to be in a save environment. you need to relook the crap in this policy. I cant even qualify for a R 400 000 home loan. we the majority are just being robbed of our rights in this country. what help will a R 22 850 provide myself and my children. even if we find a house that’s newly built, guess what, no schools in the new developed area. more expenses on traveling and endangering the lives of our children. So mr president, you live in a lovely home, you don’t have to worry about the safety of your children, how they get to school, cause you would like to put us in a rural area, to suffer more than what we are already. please anybody make sense out of this for me. cause all the ministers are not putting themselves in our shoes. Why must i move to an area uproot my children cause it has to be R300 000 and newly build??

      • Kecia , 04 March 2013

        Hi there. I’ve been thinking about your question all weekend. Of course you’re right: there are far too few houses being built at a cost of R300 000 or less to satisfy all the people who might be able to use the FLISP subsidy to buy them. And, when new projects are developed (for there are some), they’re often not in established areas, are more likely to be away from your established routes: your children’s school, your work, etc. It doesn’t seem right at all. At the same time, we live in a country where there is substantial disadvantage, and gross inequality. Sixty percent of our population earns enough to qualify for the RDP subsidy. That subsidy costs the government upwards of R150 000 per house to build. While not all households in this income bracket are poorly housed (some are already beneficiaries of the RDP subsidy programme), this is an enormous demand on the State. Another 25% of the population earns within the FLISP target market. In this bracket, the subsidy obligation of the State is anywhere between R15 000 – R87 000 per household. You’d agree this makes sense: that higher income earning people get less State support than people who earn nothing or very little. But still, to deliver housing in this bracket is an enormous undertaking, involving the participation of the State, the private sector, and in many cases also communities themselves. It takes a lot of time. The FLISP subsidy programme is only starting to kick into gear now. The President announced two weeks ago that government has spent R70 million so far, across eight projects. While that’s not a lot, its a start, and there has already been someone on this website who has reported that they received the FLISP subsidy. So its starting to work. Slowly.

        That said, I agree with you: new build is not affordable, especially to lower income FLISP target market households. It would make a lot of sense if they could extend the subsidy to also allow purchases of existing houses, because these are cheaper. I think they’re worried about how to manage this – the potential for fraud is much greater in the resale market than in the new build market. But its on the agenda – when the policy was announced, it was said that this current phase is a pilot, to test demand and see how it all works.

        So, I recommend you hang tight and wait. I do hope the policy is revised soon. In the meantime, you should make sure your debt situation is under control, and that you save as much as you possibly can, so that when the time does come that the FLISP is applied to the resale market, you have a nice deposit that you can also offer to the bank. Or, you may wish to forgo the subsidy and look for a house that is affordable to you now. There aren’t many, but as you point out, there certainly are some. I can hear that you’re not in an easy situation. Good luck, and thanks so much for sharing your experience.

      • Siphelele , 09 April 2014

        My name is Sphelele staying at Durban. I applied for RDP houses in 2009 and application is taking for ever. I’m rent R550 per month and this amount is too much for me. It would be far better if I pay this amount for my house. I’m earning R1500 disability grant so, I need to know if is it possable that I can buy government low cost house.

        • Kecia , 16 April 2014

          Hi Siphelele – you’re right, the RDP housing process does take forever. While at your income you should still qualify for an RDP house, you might want to approach the city or province to enquire about accessing an INDIVIDUAL SUBSIDY which you could then use to buy an existing RDP house on the resale market. In terms of the law, you can only buy a house that has been around for more than 8 years, and the seller must have a title deed which is then legally transferred into your name through the transaction process. Also, did you indicate on your application that you receive a disability grant – that is, that you are disabled? This might change where you are in the queue. Take your documentation to the housing office in the City and ask them to consider these options and give you a sense of where you are in the process.

  2. Belinda , 09 April 2012

    This housing subsidy?what about single parents who already own homes and are battling to improve their homes.Its very unfair that one has to only purchase a home within a certain bracket.
    Can anyone else apply for financial help for the homes or the improvemnets thereof!

    • Kecia , 16 April 2012

      Hi Belinda – I understand your frustration, but already the government is subsidising an enormous proportion of our population. About 60% of South African households earn less than R3500 per month – making them eligible to apply for an RDP house. Then, another 25% or so of households earn between R3500 – R15 000 per month. This means that our government is committed to subsidising the housing needs of 85% of the population. This is unheard of internationally, and is a significant imposition on our fiscus. What is unfair, or short-sighted, is that the subsidy only applies to those accessing mortgage finance, and only applies to the purchase of new housing. This means that people who can only afford a resale market house, or for whom a mortgage loan may be inaccessible (but who might finance their housing with savings, or with a pension-backed loan or housing micro loan) are disadvantaged.

      • SOPHIA , 10 May 2013

        Hi I am earning R6882.00 per month and I dont have Life assurence would I Be able to apply for the subsidy .

        • Kecia , 16 May 2013

          Sophia, life insurance is not a requirement to access the subsidy, although it is possible that the bank will require this for the bond. You will need to ask the bank about a life insurance product to tie with your bond. Take a look at the blog I’ve just written on how the subsidy works. At the bottom of the blog, there are links to the NFHC’s documents, providing information on how much you qualify for, where to apply, and what the conditions are.

  3. EUBRANESIA , 14 April 2012

    I earn less than 8000 as well and cannot qualify for an RDP house as we earn too much.when i first saw this head line in feb 2012 i was excited but nothing happend.No notification on how to apply or when.
    I was really loking forward because this meant that i can finally buy a house as a first time buyer.

    Not sure what to do now!

    • Kecia , 16 April 2012

      Hi there. You are in a difficult position – the new “gap” market so to speak. You probably could afford to buy a house on the resale market, but the subsidy isn’t available for that at this stage. You have a couple options. You could buy a house on the resale market right now, without the subsidy. If you are earning R7500 and if you have no other credit obligations, you could possibly afford a mortgage of about R215 000 (calculated at 11% interest, over 20 years, with a monthly bond repayment of R2250). That’s enough to buy an existing house on the resale market in some areas, or to buy a sectional title flat in some inner city areas. Or you could hang tight and hope that the FLISP subsidy will eventually become available. This might give you about R60 000 (at the current rates, if you earn R7500). This would bring your affordability to about R275 000 – still not enough to buy a new house, but a substantial amount for a good, entry-level house on the resale market.

  4. ad , 15 April 2012

    hi kecia, i would like to know a person that earns R9500 a month,how much subsidy am i going to qualify for.

    • Kecia , 16 April 2012

      Hello. At R9500 per month, you could qualify for FLISP subsidy of R47 175. To access this subsidy, you would have to first find a new house for sale costing less than R300 000, and then apply and be approved for a mortgage. The bank would then help you with your FLISP subsidy application. If you have no other credit obligations, it is possible that you could possibly qualify for a mortgage of about R275 000 (calculated at 11% interest over 20 years with a monthly bond repayment of about R2800). The downside of course, is that there aren’t so many houses available for less than R300 000. But the possibility that you do qualify is an important message for developers who will start to build for this market.

  5. ad , 16 April 2012

    hi i forgot an impotant thing to mention that I’ve got a loan that I’m repaying ,will it make an difference to the amount that I’ll get from my subsidy as you stated on your reply.if yes could you please advice me on what must I do then because I really want to buy a house.

    • Kecia , 17 April 2012

      Hello there. Your outstanding loan obligations won’t influence the amount of subsidy you can get, but they will influence the size of mortgage loan that you will qualify for. Your best bet is to go to a bank, show them your financials, and ask them how much of a loan you will qualify for. The subsidy cannot be accessed if you don’t also access a mortgage loan at the same time.

      • ad , 10 June 2012

        hi there, I would like to know if i want to buy a house that cost R345000 do I still qualify in terms of the criteria, beacause you said previous I must find a house less than R300000. This house I’m talking about is the new developed house that are being build in ilitha park in Khayelitsha and I’m interested in buying that house.

        • Kecia , 11 June 2012

          I’m afraid at the moment, the policy limits the price of the house you can buy to R300 000. Perhaps call the NHFC and ask them if there are any houses being built that will be eligible for the subsidy in your area. Then you can decide if you want to wait for those, or forgo the subsidy and buy this house that you’ve found. Their number is 011-644-9800

  6. Sbo , 17 April 2012

    Good Day.
    I think the intentions are good but the application via Banks with vigorous credit checks that need to meet certain criteria or score is rather unfair, Many who have bad credit record either by being victims of the recent financial meltdown resulting in losing their Job and unable to meet their obligations or have been blacklisted by same institutions for failing to pay their student loans due to no work in the market.
    Is this the only way of applying for this subsidy?

    • Kecia , 20 April 2012

      Hi Sbo. The FLISP subsidy is available only for those who earn a household income of R3501-R15000 per month, and who can access mortgage finance to buy a new house costing less than R300 000. However, there is one exception. If you can’t access mortgage finance, for whatever reason, and earn less than R7000, you can decide to apply to your municipality or Provincial Department for the allocation of a vacant serviced stand. If they have such a stand available and you’re approved, you would get it for free, in lieu of the subsidy. You can also apply for an Individual Housing Subsidy to buy a serviced stand from a private sector developer – but only up to the cost of a State-financed serviced stand. Its all a bit complicated, and I’m not sure the policy document itself makes it any easier. Take a look at the document posted on this website: http://www.housingfinanceafrica.org/document/finance-linked-individual-subsidy-programme-flisp-policy-as-of-1-april-2012/ and read especially Section 5, which starts on page 7 of the document. The other issue you raise, about blacklisting, is something you should address with the National Credit Regulator. You can visit their site on http://www.ncr.org.za to get more details.

  7. morvin , 17 April 2012

    Hi
    I’m getting paid R7500 do I qualify for a subsidy? And I got a house that is less then R300000 in mind . How do I go about getting it?

    • Kecia , 20 April 2012

      Hello Morvin. The policy document has just been posted on this website: http://www.housingfinanceafrica.org/document/finance-linked-individual-subsidy-programme-flisp-policy-as-of-1-april-2012/ That will give you all the rules and conditions. According to the payment tables there, you should be able to apply for a subsidy worth about R60 675. However, at this point in time you can only use the subsidy to buy a house in one of the NHFC-approved pilot projects. This is something I didn’t quite understand before I saw the policy document, and it means that its going to be even more difficult to access your house. If the house you have in mind is a new house, currently being built, ask the developer if the project is part of the NHFC pilot. You can also call the NHFC on 011-644-9800. If the house is not new, then it can’t be included in the programme at this stage. Good luck!

  8. Bernie , 18 April 2012

    Hi

    My gross salary is R5800,so will I qualify for subsidy if I want to buy an old residential property,or is it only available for new properties?

    Thanking you in advance
    Bernadine

    • Kecia , 20 April 2012

      Bernie, hi. The policy document has just been posted on this website: http://www.housingfinanceafrica.org/document/finance-linked-individual-subsidy-programme-flisp-policy-as-of-1-april-2012/ That will give you all the rules and conditions. According to the payment tables there, you should be able to apply for a subsidy worth about R72 150. Unfortunately, however, at this stage, you can only use it to buy a new house in an NHFC-approved pilot project – and there will be one in each province. However, there is an interesting exception to the policy. Households earning R3501-R7000, who cannot access mortgage finance, can decide to rather access a serviced stand. To get this, you have to apply to your municipality or Province – they would have to have a stand available, and if you qualify, you could get it entirely for free. You could also apply to the province for an Individual Subsidy to buy a private sector developed stand – but only within the costs of what a State-delivered serviced stand would cost. I’m not sure how this will all work but perhaps you should contact your local municipality or Province and find out. Then you can access a loan and contract someone to build a house on it – step by step, on an incremental basis, you could realise the home you require.

  9. martha , 19 April 2012

    Hi I am earning R7400 a month and pay loans of R1800 a month,I want to know if I want to know what must I do to apply?for how much will I qualify?

    • Kecia , 20 April 2012

      Hi Martha. The amount of subsidy for which you qualify has nothing to do with the credit you owe. That only has an impact on the amount of mortgage finance you could get to add to the subsidy, and so would have an impact on the cost of house you could afford to buy. At R7400 per month, you may be able to access a subsidy of about R61 350. The policy document has just been posted on this website: http://www.housingfinanceafrica.org/document/finance-linked-individual-subsidy-programme-flisp-policy-as-of-1-april-2012/ That will give you all the rules and conditions. Then, if I imagine that your income after payments is about R5600, you could possibly afford a mortgage of about R159 000 or so (please check this with your bank). That would mean that you could afford to buy a house of about R220 000. I’m not sure if there will be any houses for that cost in the nine pilot projects that the NHFC implements – its unlikely. In the long term they should amend the policy to allow people to buy houses on the resale market – then the subsidy could work for you.

  10. martha , 20 April 2012

    About the rental that are introduced now whereby you pay R700 a month,do I also qualify for that?

    • Kecia , 10 May 2012

      Hi Martha. Yes, I think at your income you should be able to qualify for social housing – that’s what the rental you’re talking about is called. Your best bet would be to go to the company that’s offering rental accommodation at that amount and see if you do qualify.

  11. Pinky , 21 April 2012

    Hi,
    i like to know if the salary is in terms of gross income or net because my salary was recently increased this month to 15300 gross but my net is 10800 will I qualify for the subsidy and I have 2 loans that i’m repaying at the moment.

    • Kecia , 27 April 2012

      Hi Pinky. According to the policy, which you can download from here http://www.housingfinanceafrica.org/document/finance-linked-individual-subsidy-programme-flisp-policy-as-of-1-april-2012/, it is your gross income that is calculated (see paragraph (g) on page 7). This would mean that you would not qualify. Your credit situation will also have an impact on the size of loan for which you can qualify. In your situation, the best bet is to repay your loans and start to build your savings. When you’re in a stronger financial position you can then look for a house available on the resale market – those will be much cheaper than new houses and you’ll probably be able to afford one even without the subsidy.

  12. LILLIAN , 21 April 2012

    WHAT I WILL LIKE TO KNOW THE PEOPLE WHO ARE EARNING LESS THAN 5000 PER MONTH, THEY CAN’NT AFFORD TO BUY A HOUSEAND THEY PAY A RENTAL ROOM FOR 920 PER MONTH. WHAT’S A PLAN TO BE DONE THERE SO THAT WE CAN AFFORD TO BUY A HOUSE

    • Kecia , 27 April 2012

      Hi Lillian. With a monthly payment of R920, you could access a loan of about R87 000 (at 11% interest over 20 years). If your income is R4900 per month, you could be eligible to apply for a FLISP subsidy of about R77 000. This would bring your overall housing affordability to R164 000. You’re right: this is not enough to buy a new house, and at the moment, the subsidy only applies to the purchase of new houses. The government has said, however, that they hope to extend the subsidy to resale property in the future. While you wait for the policy to change in this direction, try to save towards buying a house – set up a special savings account just for your house – and wait until this policy change.

  13. lebo , 22 April 2012

    Hi kecia

    My net salary is 4500.00 would I qualify for the housing subsidy,I stay at gauteng is it possible for me to buy a house in another province using the housing subsidy,province like limpopo because bond houses are cheaper than gauteng.

    I also want to know if I applied for a low cost house,how does the housing subsidy work.
    Thank you

    • Kecia , 27 April 2012

      Hi Lebo. At R4500, you can apply for a subsidy of about R80 925. The loan you would be eligible for – if you have no other credit outstanding – could be R130 000, which would bring your overall housing affordability to about R210 925. Yes, you can certainly buy a house in another province, but if you don’t have any savings to add onto the R210 925, then its unlikely you can access the programme at this stage. Also remember that at this stage, the subsidy only applies in NHFC-approved projects. I’ve heard that they’ve started with nine pilot projects – one in each province. You need to call the NHFC to find out the name of the developer doing the FLISP pilot project in Limpopo, then call that developer and ask if they have any houses available at the price you can afford. If they do, you need to apply for a mortgage from a bank to buy the house, and then the bank will help you apply for the subsidy. Call the NHFC. Their number is 011-644-9800.

  14. beauty , 24 April 2012

    Hi !I’m currently earning R10,000 how much do I qulify for?and since there are no new development in my area can’t I buy a house from someone

    • Kecia , 27 April 2012

      Hello Beauty. At R10 000 income, you should be able to qualify for a FLISP subsidy of about R43 800. If you have no other credit outstanding, you may then be able to qualify for a mortgage loan of about R290 000 (at 11% interest over 20 years). You’re exactly in the target market where the FLISP is useful: you earn enough and the FLISP is big enough to make a difference. At this stage, however, you can only use it to buy a NEW house that costs less than R300 000. You can’t use it to buy an existing house: it has to be newly built in a development approved by the NHFC. Call the NHFC and ask them to tell you where there are houses available: 011-644-9800.

  15. lebo , 27 April 2012

    Hi kecia

    Thanks for the replied,I think it is not possible for me to access this subsidy at this point,for the low cost houses how does this subsidy work because I applied for a low cost house,and their site it is a new project,how will I benefit from the subsidy.
    Thank you

    • Kecia , 27 April 2012

      Hi Lebo. Your best bet is to read the policy and then call the NHFC on 011-644-9800. Generally, I’m guessing that new houses will go for not much less than R300 000 – although the Department has said that they want to encourage builders to build even cheaper houses. Within your affordability range, I’m guessing it might be better for you to wait until the policy allows people to access the subsidy for the purchase of used or existing houses in the resale market.

  16. Loraine , 02 May 2012

    Hi kecia

    I Just want to know about this subsidy housing. I really need a house in Jhb. Can you please send me a info about when wil constructions start them and where wil be build. Where can I register for it?

    • Kecia , 10 May 2012

      Hi Loraine. Your best bet is to contact the National Housing Finance Corporation on 011-644-9800. They’re responsible for identifying the pilot projects that will be part of the FLISP subsidy scheme.

  17. Denver Davidson , 09 May 2012

    I would luv to know if m family will have our house in this new subsidy that the goverment is giving us. We fall in the R3000-R3500. Pls let me know cause we raelly need a house for my family. Very, very, very urgently, urgently…!

    • Kecia , 10 May 2012

      Hi Denver. In your income category there are two ways to access the housing subsidy: either you can join a project and get an RDP house that’s being developed, or you can access the individual subsidy (about R88 000) and use that to buy a house on the resale market.

      The first option – joining an RDP housing project – will probably mean that you have to wait for some time. Still, you should put yourself on the housing waiting list in your municipality. The second option – using the subsidy to buy a house on the resale market – is more likely in the short term.

      Given your income, your affordability for credit is limited, so you will probably have to find a resale house for about R100 000 or so. The subsidy will cover about R88 000 and you’d then have to use savings or access credit to pay the balance. Some older RDP houses may be in this price range however – I heard recently for houses in Delft being sold for R88 000. Please remember: you have to buy the house formally, and you must get the title deed as part of the sale process. RDP houses cannot be sold for the first 8 years after they’re first built. Some of the houses in Delft are now older than 8 years and so they’re available for sale. If you happen to find an RDP house that someone wants to sell before the end of the 8 years, you can apply to the Province for an exemption.

      I’d recommend taking a look at any RDP settlements that are in your area and ask if the people living there know of any houses for sale. Then find out if the house is older than 8 years. Once you establish that it is legal to buy the house, you need to find a conveyancer to make the sale happen legally. The provincial housing department should be able to help you with that.

  18. martha , 10 May 2012

    Hi thank u 4 ua reply,Do u know where can I apply for government rental house in Gauteng?

    • Kecia , 10 May 2012

      Hi Martha. You could ask the Gauteng Department of Local Government & Housing – you can call them on 08000 46873 and ask them which social housing companies operate in Gauteng. In Johannesburg, enquire with the Johannesburg Social Housing Company. JOSHCO caters predominantly for individuals earning a household income between R1 500 – R7 500 per month. Their website is : http://www.joshco.co.za/ The other rental housing company to check with is the Johannesburg Housing Company – http://www.jhc.co.za/

  19. Tasha , 10 May 2012

    Hi there I am earning R4500 per month, and would like to know if I would be able to get a subsidy for a serviced stand? and how do I go about it? I have also contacted the NHFC and was told to ph back in June for Northen cape area, any suggestions, wouldnt it be easier to just apply for a subsidy to get a serviced stand and build a house, also is this open to anyone as I am white?

    • Kecia , 15 May 2012

      Hi Tasha. In principle, given your income, you should be able to get the subsidy for the serviced stand. There is no racial restriction on the subsidy – qualifying criteria require you to earn less than R7000 (for the serviced stand option), have financial dependents, and to have never owned property before, among other factors. Its not clear, however, whether the various provinces and municipalities are planning to deliver these any time soon – the clause in the subsidy policy is rather vague. You may have to be a bit of an activist in your area. Call your provincial housing department and also your municipal housing department and ask them how they are going to respond to this clause in the subsidy policy and whether (and how) you can apply. Let me know how it goes – I’ll be interested to hear.

  20. Junia , 11 May 2012

    Hi Kecia
    If i found a RDP house that is more than 8yrs $ the owner is selling that house i can buy it in another words, am i going to get a flisp subsidy or not because its not a new house? secondly if i buy a side from the owner am i going to get a grant also or not.

    • Junia , 23 May 2012

      Hi Kecia

      Im still waiting for my answer

      • Kecia , 23 May 2012

        Hello Junia. The FLISP subsidy today only applies to new housing that costs less than R300 000 and is in approved projects – so no, you can’t use the subsidy to buy an RDP house that is older than eight years. Yet. I hope that in future the subsidy policy will be revised to enable you to make such a purchase, but at this stage you can’t. I’m sorry. The stand situation is, I believe, much the same although the policy is not as clear in this regard. I would take the details of the stand that is for sale to your municipality, and bring it to them together with the policy document – you can download it here http://www.housingfinanceafrica.org/document/finance-linked-individual-subsidy-programme-flisp-policy-as-of-1-april-2012/ Highlight for them section 5 on pages 7 and 8, and see if they would give you a subsidy for your stand purchase. I suspect they wouldn’t – they haven’t got the systems and procedures worked out for this type of approach. But let me know how it goes. I’d be interested to hear. Thanks for your patience in waiting for a response. Kecia

  21. Busi , 23 May 2012

    Kecia what about some one asking subsidy according to her monthly income but purchase a house of her own choice, meaning it is up her how to pay the balance. For instance you earn R10 000 but you want to purchase a house of R450 000. then they give the subsidy of a R300 000 purchase, you self see to it that you pay the balance of R150 000 as we stuggling to get houses of R300 000 from where we live , houses are expensive .

    • Kecia , 23 May 2012

      Busi, your point is valid, but unfortunately that’s not how it works. Government is trying to encourage developers to build houses for less than R300 000 and so they’ve imposed this restriction on the FLISP to encourage developers to target this market. It may take some time, but eventually they hope that new houses will be built in this lower price category. In the Finance Minister’s Budget Speech a few months ago, he also announced that a tax incentive would be offered to builders who build housing for less than R300 000. This is all part of government’s plan to make sure that cheaper housing is delivered. I know it sounds crazy, but if you want to buy a house for R450 000, you’ll have to do it without the subsidy. Once the subsidy is broadened to also be applied to the resale market it will make more sense -then you’ll find that lots of existing housing on the resale market is cheaper than R300 000.

  22. SIBONGILE , 24 May 2012

    hi, in earning 9600 a month, would like to apply for the government subsidy, how much would i qualify for and how should i go about applying, how long will the whole process take

  23. SIBONGILE , 24 May 2012

    would like the process of applying for the subsidy, step by step

  24. Livhu , 29 May 2012

    Hi, I want to know that If I am earning 15500 per months which include housing,danger allowance, but without danger allowance and housing allowance is 14300.Do I qualify and if I qualify why because when you introduce this scheme the 800 housing allowance will not paid to me.

    • Kecia , 04 June 2012

      Hi Livhu. At R15 500 per month you’re earning too much to qualify for the subsidy – for the FLISP subsidy, the limit is R15 000 household income per month. Please note – I am not a representative of the government. The CAHF is an NGO that, among other things, tries to make information about housing financing transparent. Your best bet would be to call the NHFC (011-644-9800) and ask them how this scheme relates to the R800 housing allowance that you are referring to. I would think the two are separate, but you have to check. Perhaps HR might also be able to help you?

  25. cornel , 06 June 2012

    By refering to household income, you refer to joint income (husband and wife) ?

    • Kecia , 11 June 2012

      Yes, that’s right Cornel. Household income is all the income earned in the household – so what is earned by husband and wife, or co-habitors, together.

  26. ntsiki , 07 June 2012

    Hi kecia

    Thank you for you information nw my question is if you earn net 10200 and after deduction its 7000 including monthly expenses how much subsidy do you qualify for and is it likely for the bank to grant you a mortgage loan in this situation and perhaps what can make your application not to be approved especially if you are saving a lot of money from your salary monthly?

    • Kecia , 11 June 2012

      Hi Ntsiki. I think the qualifying criteria judge you by your gross salary. You can look at the subsidy tables at the back of this document: http://www.housingfinanceafrica.org/document/finance-linked-individual-subsidy-programme-flisp-policy-as-of-1-april-2012/ I don’t know if the bank will grant you a mortgage – it all depends on your credit rating, whether you have any other outstanding debts, and what your expenses are. Take the information of the FLISP subsidy with you to the bank and speak with a loan officer. They’ll help you figure out how much you can afford. If you have other questions, you can also call the NHFC on 011-644-9800. Good luck!

  27. Sandi , 07 June 2012

    I have a house value @ R20 000 in a township that was donated to me by my mother, its not much but a RDP HOUSE in a very large plot, I earn R3000 pm whats my best option hear, will I be penalized for this house that was donated to me, or is the a way in which I can access this subsidy and develop this property into a better one?

    • Kecia , 11 June 2012

      Hi Sandi. First of all, the RDP house donated to you by your mother is worth much more than R20 000! At simple replacement cost it could be worth anywhere between R80 000 – R150 000. Where the plot is also affects the value – if you’re in Cape Town or Johannesburg, its likely to be higher in value than if you live in a smaller town. To some extent, the value of RDP houses is also impacted upon by the way that the buyer would finance the purchase – so, if you were to sell the house to someone else, and if they were to get a subsidy to buy it, that would be the price. Your question about whether having this house penalizes you in getting another subsidy is interesting: this is an asset, and a benefit in and of itself. When you received the house from your mother, did she transfer her title deed to you, and was this done legally in the deeds registry? What I’m asking is, are you the legal owner of the house? If yes, then you won’t be able to access another subsidy. The subsidy is only for people who have never owned a home before. If no, then perhaps you could apply for a subsidy. You will need to check with your local authority, I think.

  28. Tasleema , 09 June 2012

    please help me apply for a subsidy

    • Kecia , 11 June 2012

      Hi Tasleema. I’m not a government employee- I just try and put information onto this website so people have information to address their housing needs. If you earn less than R3500 household income per month, you should go to your local municipality for help. If you earn between R3500 – R15 000, you can contact the NHFC for help. Their phone number is 011-644-9800.

  29. Thembelihle Nkabinde , 14 June 2012

    Will blacklisted people benefit from this project?

    • Kecia , 17 June 2012

      Hi Thembelihle – the FLISP subsidy can only be accessed together with mortgage finance. That’s just how it works. If someone is blacklisted they need to resolve their situation before they can apply for the subsidy. This means they’re going to have to repay their debt and get themselves into good standing.

  30. gina , 18 June 2012

    hi
    me and my husband salary all together comes up to R10 000-R12000
    that is now without expenses and his father wants to sell his house to us but its difficult to get the money with our budget and a family to sort out and the house is way behind in debt can we go for this subsidy and how,where,please help

    • Kecia , 19 June 2012

      Hi Gina. The subsidy can only be used to buy a new house that costs less than R300 000 and is part of a project approved by the NHFC. While the government has said that they’d like to extend the application of the subsidy to existing houses for sale on the resale market (like your father-in-law’s house), this is not how it works at the moment. While you should be able to qualify given your income, you couldn’t use the subsidy to buy your father-in-law’s house. I’m sorry.

  31. hans , 27 June 2012

    Simple – the people who make decisions do not suffer the inconveniences of not having a home – why should they care who sleeps in th rain!

    Get the government to pay the price of 2 house and build one decen one and you will not have to break down 50% of what is built because the are a danger to humanity.

    Perhaps someone shpould tell them how it really works – I truly think all the misery is brought about by the fact that” they dont know that they dont know”

    I own a NHBRC approved alternative building technology which will sort out many housing issues, the problem is I am white – they would rather have tumbe downs built by the unqualified.

    Should there be interest out there from ANY South African
    who truly wants to solve the housing issue in the GAP market talk to me please if you are sincere we have something in common.

    • denver , 30 June 2012

      Hi kecia my nett salary is R3600 if they give me aplot for free will they give me the subsidy money to build and how much will the sub be

      • Kecia , 01 July 2012

        Denver, if you access the serviced plot, you won’t get additional funding to build a top structure. You’d need to save or access microfinance to build your house step by step incrementally. Call your local municipality or the NHFC for more information.

  32. Pinkie , 01 July 2012

    My gross is 6000 how much wil I qualify for? For the subsidy

  33. Khanyi , 03 July 2012

    Hi Kecia

    If the y say the subsidy is for people earning betwee R3 500 and R15 000, do they mean after they have been taxed or not? In my my case i earn R8 500 but my nett is R7 500.

    • Kecia , 09 July 2012

      Hi Khanyi – as I understand it, your eligibility is calculated on gross income. So, in your case this would be R8500. But call the NHFC to be sure: 011-644-9800

  34. carmen , 03 July 2012

    tell how can me and my husband apply for a loan at any bank since we are both blacklisted and we would really like to own a house please help us cause we are not the only pleople that have this problem there are a lot of families that must stay in back yards and keep up with the demands of other people so please help us as well

    • Kecia , 09 July 2012

      Carmen, you have to resolve your credit situation before you can apply for mortgage finance to buy a house. The National Credit Regulator offers a useful brochure on managing your finances, which also discusses how you apply for debt counselling – you can download the brochure from here: http://www.ncr.org.za/publications/brochure5.pdf The only way you will ever be able to access a loan to pay for your housing is if you pay off your other loans. Please start today. I know its hard but you have to do it if you want to own your own house.

  35. lolla , 05 July 2012

    Good day
    I earn less than R2500 and wants to buy a house with my brother and sister. This is an excisting house and worth between R380000-R420000. Will I still qualify for a subsidy if I buy like this? My sister earns less than R13000 per month and is thinking about applying for a pension backed loan for her share.

    • Kecia , 09 July 2012

      Hello Lolla. You could certainly buy a house together with your sister – however your combined income puts you beyond the eligibility for the FLISP subsidy. Only households earning less than R15 000 COMBINED can apply for the subsidy. By herself, she would be eligible to access the FLISP subsidy – although she’s quite close to the upper threshold so the amount would be less. If she were to access that subsidy, she would only get it if she were buying a new house for less than R300 000 in an NHFC-approved project and with mortgage finance. It doesn’t apply if she accesses a pension-backed loan. If you have dependents, you could apply for the RDP subsidy but the queue for that is very long.

  36. sanniah , 10 July 2012

    I want to know when i buy Rdp house will nhfc pay for me that house and im earning 8000 my problem is credid berue and i wont qualify for bond.

    • Kecia , 11 July 2012

      Hi Sanniah. At R8000 you would be able to apply for the FLISP subsidy, which would be an amount of money that you would add to your bond and use to buy a new house costing less than R300 000, in an NFHC-approved project. You can’t access the FLISP subsidy if you can’t qualify for credit – the two have to go together. There seems to be quite a lot of demand for the FLISP subsidy so I think even if you could access it, it would take some time. Use this time to resolve your credit situation – pay back your debts, clear your name with the Credit Bureau, and start saving, so when the housing situation gets better and there is more supply available, you will be ready to participate.

  37. Ivy , 12 July 2012

    Good Morning
    Iam a 40yr old woman and I earn 10000 before deductions my question is do I qualify for FLISP subsidy and if I qualify what are the procedures for applying?

    • Kecia , 16 July 2012

      Hello Ivy. Given your income you should qualify. The administrating agent for the subsidy is the National Housing Finance Corporation. Give them a call on 011-644-9800 and ask them how it works. Unfortunately access to the subsidy is constrained by the availability of houses – but see what they say about houses being built in your area that qualify for the subsidy.

  38. ZINTLE , 12 July 2012

    21 years..i would like to buy my fathers house with my goverment subsidy but i would like what do i need to qaulify and where should i go

    • Kecia , 16 July 2012

      Zintle, you can only use the subsidy to buy a house in a new project, that costs less than R300 000 and which has been approved by the NHFC. At this stage, the subsidy cannot be used to buy existing houses. If you want to buy your fathers house, you won’t be able to access the subsidy. You can call the NHFC for more information: 011-644-9800.

  39. terence , 13 July 2012

    Hi,I would like to find out if I buy a land and build my own house will I still qualify for the housing subsidy.

    • Kecia , 16 July 2012

      Hi Terence. According to the policy (http://www.housingfinanceafrica.org/document/finance-linked-individual-subsidy-programme-flisp-policy-as-of-1-april-2012/) households earning R3501-R7000 can apply to get a free, serviced stand, and then you can build your own house on that. With that approach, the subsidy would cover the cost of the stand and you would have to finance the building of your house. If you earn more than R7000 but less than R15000 however, you would have to access the subsidy through the standard process – buying a new house that costs less than R300 000, in an NHFC-approved project. There are a lot of people who fit into this circumstance, and I don’t think there are many such projects or houses. You need to call the NHFC for more information: 011-644-9800.

  40. Santrap , 16 July 2012

    My Gross income is 9900, and net pay is 8280. Do I qualify for a subsidy.

    • Kecia , 17 July 2012

      Hi there. According to your income you should qualify, but there are other criteria as well so you would do best to check with the National Housing Finance Corporation (NHFC) – you can call them on 011-644-9800. To access the subsidy you would have to buy a new house in a project that has been approved by the NHFC so it is important to check with them. At this stage, you can’t use the subsidy to buy any house on the market. Hopefully this will change in the future, but in the short term this is how it is.

  41. Dorothy , 23 July 2012

    Can existing homeowners also apply? We have our bond for a year.

    • Kecia , 23 July 2012

      Dorothy, the subsidy is only available to first time homebuyers, currently buying a new house in an NHFC-approved project. I’m so sorry, but existing homeowners cannot apply. On the upside, the Reserve Bank decreased the interest rate by 0.5% last week so that should be helping a little.

  42. Gloria , 31 July 2012

    Hi Kecia..im in desperate need of a house i earn under the set amount which is R2500pm. I have 3 dependants. What options could i look at for the amount i earn. I currently been looking through the Subsidy website but none make sense to me would you mind steering me in the right direction as to optaining a house..With the little i get i do not mind paying abit towards a house for my kids.

    Awaiting your favorable response.

    • Kecia , 01 August 2012

      Hi Gloria. I know the subsidy website doesn’t make much sense… its a real pity. At your income, and given that you have dependents, you should qualify for an RDP house. I’m sure you know from the news, however, that there is quite a long queue for these houses. You need to contact your local municipality on the telephone and ask them how they allocate houses in your area. Also ask them how long the waiting list is. There is one other option, although its not so common. In some municipalities, you can access an individual subsidy (this is worth about R88 000 or so) which you can use to buy an existing property, like an RDP house that has been around for more than eight years. If you find a house in your area that is for sale, perhaps you can follow this route. Please remember that in order to get the subsidy you have to buy the house legally – that is, you have to get the title deed in your transaction. I hope your municipality can help you further.

  43. Angie , 31 July 2012

    Hi Keisha

    I would like to know if I do qualify for a subsidy. I eern R6400.00 per month. I also want to know if I can use the subsidy to buy an existing RDP House which is older than 8 years. At the moment I am renting a flat of R1800.00 per month. I know that I am not creditworthy.

    • Kecia , 01 August 2012

      Hello Angie. At R6400 per month you should qualify for the finance-linked individual subsidy, but in order to access it you must link it with credit. If you are not creditworthy at this stage, this approach won’t work for you. The other option you have, according to the policy (though I’ve not yet seen it done) is to access a serviced stand. People who earn R3501-R7000 can apply to their municipality to get a serviced stand instead of the financial subsidy, and for this you don’t need to link it to credit. Even if you were creditworthy, however, you wouldn’t be able to access an existing RDP house – the programme is only available for new housing at this stage.

  44. Lerato , 01 August 2012

    Hi Kecia,

    As i understand it from snippets of information read, to qualify for the subsidy you should be a first time home buyer and under a certain income bracket also the area in which you’d qualify for subsidy must be within a Provincial based housing project however i’ve phoned NHFC to give me a list of area in Gauteng that forms part of the Provincial Based Project and they’ve informed me that they currently none in Gauteng and I Specificly named Cosmo City if it’s part of the programme they responded with a no. As far is they are aware there only two provinces in the country that do have such projects. do you perharps have more information on this projects, i thought when the subsidy was mentioned by the president in Febraury that it would be available from April that was would have been the case it seems like that’s not please tell me, i’m wrong. would appreciate your response.

    regards Lerato

    • Kecia , 01 August 2012

      Hi Lerato. You’re understanding the situation perfectly. The current FLISP subsidy that was announced by the President in February and promised for implementation from 1 April is only available in new housing projects that have been approved by the NHFC, where the houses cost less than R300 000. According to the policy, it is the responsibility of the NHFC to “i) Standardise, streamline, align and centralise all the processes around the planning, negotiation and administration of the Programme; ii) Introduce a “one-stop shop” to work with Provincial Departments, financial institutions and property developers and other role players regarding the implementation of the Programme; iii) Enter into appropriate legal arrangements with MECs to act as the implementing agent for the Programme in the relevant province for the administration and disbursement of FLISP subsidies. … and iv) Conclude agreements with lenders and other role players to enable the implementation of the Programme on a project basis.” For this they get a special budget allocation from the Department of Human Settlements. You can download the full policy from our website, on http://www.housingfinanceafrica.org/document/finance-linked-individual-subsidy-programme-flisp-policy-as-of-1-april-2012/ It is therefore the NHFC’s responsibility not only to know of projects that align with FLISP, but also to find such projects. They should also be communicating this widely. I am very sorry that there are such delays. The best thing you can do is keep on calling them and pressurising them to respond as they are required to do. I wish I could be of more help.

  45. Ncumisa , 06 August 2012

    Hi Kecia

    I want to know what about those people who earn R2500 per month,because before the housing subsidy was for the people who earn from R0-R3500,so what is going to happen to them if they also need the subsidy? or is there any help they can get in order to be qualified?.. Or this means people who earn R2500 do not qualify at all if i am not mistaken.

    Thanks!!
    Ncumisa

    • Kecia , 12 August 2012

      Hi Ncumisa. Don’t worry: the RDP subsidy still exists! It works like this: households earning less than R3500 per month, and who satisfy a range of other criteria, can apply for an RDP house. Households earning more than R3501 and less than R15 000 can apply for the Finance-Linked Individual Subsidy Programme. According to your income, you should be able to apply for the RDP subsidy. To do this, go to your local municipality and ask them about how to apply, and about the status of their waiting list. I should warn you – the waiting list is pretty long in many cities, but depending on where you live, you may find an opportunity.

  46. Idah Sesi , 07 August 2012

    I am currently earning R 4150.00 like to know if I qualify for a housing subsidy? Please advice me on how to go about having that information, because I need a home so desperatetly, have kids with no home.

    • Kecia , 12 August 2012

      Idah, with your income you should be able to apply for the Finance-Linked Individual Subsidy Programme. However, because the subsidy must be linked to finance, you also have to earn enough to afford mortgage repayments – and unfortunately at your income that is probably unlikely (though, you should check with your bank to be sure). The FLISP subsidy has an exception, however, specifically targeted at households earning R3501 – R7000. Households in this range can apply to get a serviced stand, for free and without credit, from their municipality. I’m not sure if any municipality has implemented this exception however. You should download the policy on this website (http://www.housingfinanceafrica.org/document/finance-linked-individual-subsidy-programme-flisp-policy-as-of-1-april-2012/) and take it to your municipality and ask them if they are going to implement the approach set out on page 7, section 5, entitled “Special Provisions for Qualifying Beneficiaries who are unable to obtain mortgage loans”. You can also call the National Housing Finance Corporation and ask them if they have any information on how this will work in your area. Their number is 011-644-9800. Good luck, and let me know how it goes!

  47. daniel , 07 August 2012

    thanks for the information i got from your website and now i know that it is not only me who is frustrated by this present policy that affect us directly.big up for the effort. i guess most of the budget allocated for this will go back unused because of the red tape. i was happy when the announcement was made on budget speech but now i am downn to earth.

  48. chris , 11 August 2012

    I would like to know.I all ready purchesed a property but would allso would like to benefit from government subsidy like flip

    • Kecia , 12 August 2012

      Hi Chris. I’m sorry, but the subsidy only applies when it is accessed at the point of purchase: it does not work in retrospect. I understand you’d like to benefit from the subsidy, but the waiting list for that is so long, you’re probably better off having your house now. Good luck.

  49. Shirley , 13 August 2012

    Hi, I earn R15 000.00 have a house, but needs to extent will flisp apply to me as well.
    Is the flisp part of Dora allocation of a Municipality.

    • Kecia , 13 August 2012

      Hi Shirley. I’m afraid the FLISP does not apply to you. It is only available to households who earn less than R15 000 and who have never owned a property before. It does not apply retrospectively. Yes, the FLISP is part of the housing subsidy allocation to the municipality – as I understand it, municipalities choose the proportionate allocation between RDP housing and FLISP subsidies.

  50. Christine , 13 August 2012

    What help is there for a domestic worker who earns LESS THAN R3500.00 PER MONTH? IN TERMS OF HOUSING( SHE HAS APPLIED BUT THERE SEEMS TO BE NO SYSTEM IN PLACE) AND IN TERMS OF A LOAN?

    • Kecia , 13 August 2012

      Hi Christine. Households who earn less than R3500 per month can apply for the RDP housing subsidy – but you’re right, there’s a very long waiting list. In some cities, the wait has been more than ten years. The best bet is to contact your local municipality and ask to know where on the waiting list you are. Depending on your income, you should be able to access finance – whether a small mortgage, or a housing micro loan – but the amount that you would be approved for is likely to be too little to afford even the cheapest housing. One option that can work in some municipalities is the individual subsidy. In terms of this programme, you could get an individual subsidy (its about R80 000, depending on the municipality or province) to buy a house on the resale market. I know that in some areas, there are houses that sell second-hand for less than R150 000. Ask your municipality if they offer this option.

  51. Bongiwe , 17 August 2012

    I wanrt to apply for a house what must i do and where to get the forms because the web adress of housiing finanfe africa is not working i’m earning 9,200 monthly

    • Kecia , 21 August 2012

      Hi Bongiwe. The National Housing Finance Corporation is the administrator of the Finance Linked Individual Subsidy Programme, so they should be able to give you the application details. Call them on 011-644-9800.

  52. Monique , 19 August 2012

    How much does my husband qualify with R4200.the price of the rdp house is 75.000.how long does the subsidy take.

    • Kecia , 21 August 2012

      Hi Monique. If your household income is R4200 you should qualify for about R82 000. You can download the whole policy document from this website: http://www.housingfinanceafrica.org/document/finance-linked-individual-subsidy-programme-flisp-policy-as-of-1-april-2012/ However, I’m afraid you can’t use the subsidy yet to buy an existing house. According to the current policy, you can only use it to buy a new house that costs less than R300 000 and which is in an NHFC-approved project. At an income of R4200 per month, however, its unlikely that you’ll qualify for the R218 000 mortgage that you’d have to get in order to buy a R300 000 house. For this reason, the policy also includes a section for people earning less than R7000 per month, which says you can apply for a serviced stand instead. Call the NHFC and ask them to explain this process to you. Their number is 011-644-9800. Good luck.

  53. Dipuo , 22 August 2012

    would i qualify for a subsidy to renovate my late mother’s RDP house in free state? i’m a housekeeper earning 5900. what advice would you give me. i’m single and have no kids. i really want to improve the house bacause that’s my home. the banks won’t give me a loan.

    • Kecia , 23 August 2012

      Hello Dipuo. I’m afraid there is no subsidy to assist you in renovating your late mother’s RDP house. If you’ve formally inherited the house (if the title deed is in your name) you will not be eligible for any subsidies as one of the criteria is that you have never owned property before. However, depending on what other credit you have outstanding, you could be eligible for bank finance. If the property is in your name, you could apply for a mortgage loan. A better option might be a smaller micro loan, however, that you could use to build your house incrementally, step-by-step, in a pay as you go sort of way. The faster you pay off the microloan, the cheaper it is, because of the interest. If you don’t legally own your late mother’s house, and if you’ve never owned a property before, you could apply to the NHFC for the Finance Linked Subsidy, but there is such a queue and supply is so slow, this is unlikely to give you a house any time soon. Better you renovate the RDP house. Depending on where you live, there are some microlenders who specialise in housing. If you visit the Rural Housing Loan Fund’s website, you can get the details of a housing microlender in your area: http://www.rhlf.co.za/lenders.php

  54. Sinazo , 27 August 2012

    Hi There
    i am a commision earner with a basic of R3500 do i qualify for the full amount of R87000 or how does the calculation work?
    and my 2nd question which development i can choose from in cape town?
    many thanks

    • Kecia , 31 August 2012

      Hi Sinazo. I’m not sure how the affordability calculation works for commission earners – you’re raising an interesting question. I suspect they’d take your last three months earnings or so and take the average? Please call the National Housing Finance Corporation (NHFC) and ask them how it works – they’re the administrators of the scheme. The number is 011-644-9800.

  55. mishka , 31 August 2012

    Hi there
    My husband i would like to know do we qualify for housing subsidy and our income together is 11670pm
    and how and where should wego to apply please

    • Kecia , 03 September 2012

      Hello Mishka. At your income, yes, you are eligible to apply for a Finance Linked Individual Subsidy (FLISP). The administrator of the subsidy is the National Housing Finance Corporation, so you should call them first and they’ll give you all the details: 011-644-9800. The FLISP subsidy can only be accessed together with mortgage finance (so you will have to qualify for a mortgage loan with your bank), and can only be used to purchase a new house costing less than R300 000 in a project that has been approved by the NHFC. I know there’s quite a lot of people trying to access the subsidy, so please be patient – it may take some time.

  56. Ongi , 06 September 2012

    Hi Kecia…
    sometimes it is so difficult to get full info from our local municipality as sometimes we are living in the rdp houses close to developed houses, when we go to them for assistance they refer you back to your area councillor and belive me Kecia councillors dont give a heck. My point is how exactly would you find out what vacant land is there and what houses are built linked to the scheme?

    • Kecia , 06 September 2012

      Hi Ongi. I fully appreciate the difficulties you are facing… Of course, we do know that our municipalities are under terrible pressure to address very many needs, and the FLISP opportunity for a serviced stand is a new policy. It is possible they’ve not yet developed the necessary administrative arrangements to implement the policy. In principle, it should be the housing department within you municipality that should be helping you – and not the councillor. This is an administrative and not a political issue. If you’re happy to tell me the name of the municipality that you’re in, I’ll see if I can contact them. Have you tried calling the NHFC? They should be overseeing this whole programme. Their number is 011-644-9800.

  57. Elfredo , 06 September 2012

    Hi wanna know if i can still qualify for the subsidy,Because i earn R4500 per month.and i already qualify by the bank for the house.

    • Kecia , 06 September 2012

      Hi Elfredo. The subsidy is only available if you have never owned a house before, and if you use it together with a mortgage to buy a newly built house that costs less than R300 000. Your income is within the eligibility range, and its great you qualify for a loan, but if you want to buy an existing house (not new) then you can’t get the subsidy.

  58. Lerato , 06 September 2012

    Hi Kecia,
    I’ve noticed that most of the concerns and question raised on the blog is about access to required information from NHFC regarding how do the FLISP subsidy works and availability of housing projects to the value R300000 or less in municipalities one may reside in, linked to the project and how an individual can proceed in applying for a subsidy once having had an access to that information. obiviously having been pre approved for a morgage bond.

    Can you perhaps pose these question to the NHFC alerting them to lack of access to information and may be they should be aware of these blog so they can see how many people are in need of homes. I’ve phoned and i could’nt get required answers on question asked. specifically on areas in Gauteng falling under FLISP. I would also wonder how many people have phoned the number 011 644-9800, have received satisfied answers great blog.

    thanks.

  59. Lerato , 06 September 2012

    Hi Kecia,

    Just to add on my previous comment i think all major banks offering homes loan finance, they should have information on FLISP readily available same way as they have on their various product offerings.

    thanks.

    • Kecia , 06 September 2012

      Hi Lerato – I have been planning on bringing all of this to the attention of the NHFC and National Department – and your suggestion about the banks is also a good one. I did speak with NHFC a few months ago, but will do so again. One of the problems that everyone faces, however, is that the design of the policy instrument itself – focusing in the short term just on new-build, and requiring projects to be approved by the NHFC – is bound to create blockages and delays. When the President announced the scheme in his State of the Nation Address in February, it sounded like the money would flow from April. But that’s only when projects started to be approved – and houses take years to build. Its hard to be transparent when you’re not delivering the news your audience wants to hear. I’ll keep you posted.

  60. Percy , 18 September 2012

    Hi, I earn around R4.600.00 after deduction & i’m Blacklisted. I bought a stand, have building plan ready & got a qoute for R60 000.00 for building material. i do have dependants & want to build a house. How can i go about receiving assistance through FLISP. where can i also get these application forms.

    • Kecia , 21 September 2012

      Hi Percy. I’m impressed how far you’ve gotten with your housing process. Unfortunately, the FLISP does not apply to building materials, and you can’t get the FLISP if you already own property – even if its just land. You’re going to have to do this on your own. Still, you’re a lot farther than many people so don’t lose heart. If you’re blacklisted, you’re not likely to get the full R60 000 from a lender – but have you thought of splitting up your construction plan into more manageable phases? There are some organisations that can give you advice in this regard – Habitat for Humanity, for instance, or even one of the Rural Housing Loan Fund’s housing microlenders, should be able to tell you how to build your housing in phases. Also, you should start addressing your credit situation to clear your credit record. Save and pay off a little every month. If you let me know what province you’re in, I can give you the name of some organisations to contact for help in your house-building process.

      • Percy , 21 September 2012

        Hi Kercia, thank you for the response & advice. I’m in the Vaal, Gauteng province. Building the house in phases was something I thought about & it will work out cheaper too. please furnish me with a list that could assist & thank you again.

        • Kecia , 27 September 2012

          Hi Percy. I’m trying to find which organisations might be there to help you – in the meantime, take a look at the Rural Housing Loan Fund’s website: http://www.rhlf.co.za.

  61. Lydia , 19 September 2012

    Hi Kecia, Our combined salary is R7000, I just want to know do we qualify for Subsidy houses?

    • Kecia , 21 September 2012

      Hi Lydia. In principle you should qualify – it all depends on whether you have never owned property before, if you can access a mortgage loan to pay the difference, and if the house you find is approved by the National Housing Finance Corporation and costs less than R300 000. The subsidy you get is only part of the cost of the house, and in order to get it you have to qualify for mortgage finance as well, which is then linked to your subsidy to buy the house. The NHFC is the administrator of the scheme and they also have information on which houses can be bought as part of the programme. Call them on 011-644-9800

  62. Rachel , 19 September 2012

    Hi Kecia,my husband and I earn a joint income of R 11,500 and I would like to know regarding this government subsidy how do we go about getting it and we would like to apply for a house next to where we work and our children are schooling,Cosmo city part of this programme?

    • Kecia , 21 September 2012

      Hi Rachel. Yes, at your income you should qualify for the FLISP subsidy and for mortgage finance. I’m not sure if Cosmo City is part of the programme – but it only applies to new housing built in projects approved by the NHFC and where the housing is less than R300 000. As you would imagine, there’s quite a long queue. Call the NHFC and ask them for the details – they are the administrators of the subsidy programme. Their number is 011-644-9800. At the moment, the subsidy does not apply to the purchase of existing housing on the resale market. You may find that you can get housing for cheaper on the resale market – in which case, you may wish to forgo the subsidy to get the house you want.

  63. Shaun , 23 September 2012

    Hi there im earning R4500 per month. I want to apply for a subsidy, but i was at my local Munisipality and they told me that I have to wait until November 2012. According to them this new subsidy rule will start this november. I have a house that I can buy, the seller ask me only R80 000 for the house, and according to the subsidy parameter i qaulify for R80 250.00. tell me do i have to wait untill November 2012 or what. Please assist me on this

    • Kecia , 27 September 2012

      Hi Shaun – I’m trying to find out the answer to your question. November may well be when the subsidy amounts are revised – this happens annually in line with inflation. Or, it could be the date that your municipality has decided to start wit the implementation of the FLISP. As far as I know, the FLISP doesn’t apply to resale stock, however… it will in the longer term, but in the short term they were restricting this to new housing. But maybe this is changing. I’ve left a message with the NHFC for them to contact me, and will try them again – I’ll get back to you as soon as I know.

      • Shaun , 26 March 2013

        Hi Kecia, Im in the process of buying a house but I already went to the bank for a home loan. I’m buying the house for R140 000-00. I want to know if I can still apply for a house subsidy to pay the bank or did my chance gone by… please let me know.. im 21 years old getting married soon. the repayments is for 30years. will the state help me with this one.?

        • Kecia , 27 March 2013

          Well done, Shaun, for finding a house for R140 000. I’m afraid you can’t access the FLISP subsidy however – not because you’re too late, but rather because the house isn’t newly built and approved by the NHFC. You know, if you pay a little bit more on your repayments (this is something you could start in a couple years, when your income improves) you can dramatically reduce the number of years you need to repay your house for, and the interest you will pay. But at this point, feel proud for what you’ve achieved. Well done.

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  65. Euginia , 30 September 2012

    Hi,am earning a monthly income of R9750 a month.Do I qualify for a house at the newly devopment at fleurhof?

    • Kecia , 05 October 2012

      Euginia, with your income, you should certainly qualify for a FLISP subsidy – and the Fleurhof houses are all less than R300 000, both full title and sectional title units. So, if you also qualify for a mortgage on your salary and given your credit situation, it is likely that you could have enough to purchase a unit at Fleurhof. HOWEVER, I’m not sure how the subsidy applies to existing developments. According to the NHFC, they have signed agreements to implement the FLISP in 8 of the 9 provinces – so I suspect Gauteng is one of these. But they have not yet disbursed any FLISP subsidies and I don’t know if they’ve reached any agreements with any of the developers yet. I recommend you call them and ask them if you could apply for the FLISP to buy a house in Fleurhof. In principle, they should be able to do it, but I’m not sure if they’ve sorted out all the administrative arrangements yet. Let me know what they tell you. I’d be interested to know.

    • Kecia , 12 October 2012

      Hi Euginia – to find out more about Fleurhof, you can call Wendy Cater at Calgro. Her number is 079 512 8066. The Fleurhof development is in part financed by International Housing Solutions. They’re planning on updating their website to include marketing contacts for all of their projects that are marketing units for rent and/or sale. You can visit their site on http://www.ihsinvestments.co.za/ – keep checking back as they update it.

  66. FUNDISWA , 06 October 2012

    Hallow i just want to know if my husband can qualify for an subsidy house,we desperately looking for a house even if its a rent to own he gets R1300 every week and he is permanently employed, clear credit record pls assist urgently

    • Kecia , 09 October 2012

      Hello Fundiswa. If your household income is above R3500 per month but less than R15 000 per month you certainly can apply for the FLISP subsidy. This is a subsidy that you use together with a loan to buy a house that costs less than R300 000. The National Housing Finance Corporation (NHFC) is administering the subsidy, and they should be able to tell you what to do. You can call them on 011-644-9800. However, I should mention that the scheme really hasn’t started yet. Even though it was officially launched on 1 April 2012, they haven’t yet disbursed any funds. I’m about to write another blog on this subject so please keep watch on the website.

  67. FUNDISWA , 06 October 2012

    pls assist me i need a house and my husband is getting R1300 after deduction and i just want a house or Rent To Own pls

  68. Simphiwe , 08 October 2012

    Hi Kecia
    My income is R4700 net & i`m repaying a bank loan R1300 monthly, i`m desperately need a stand or a house currently renting in Tembisa & also renting for my siblings which are not working please help me which is the fastest way to take in order for us to have a home or a stand around Tembisa or Daveyton

    • Kecia , 11 October 2012

      Simphiwe, I suspect that R1300 loan repayments per month is the most you can manage. Can’t you pay off that loan first? Put your name on the list for a stand in your area – in terms of your income you should qualify for a serviced stand, however I’m not sure if the municipality has implemented that part of the programme yet. But pay off your loan because its unlikely you’ll be able to access any more credit until you do. Good luck.

  69. Nomsa , 08 October 2012

    Hi Kecia
    My cousin sister has 2 kids, she is working only 6 days a month in Gauteng and renting a back room, her mother at home is staying in an RDP house which is on my cousin`s name how is she going to get an RDP house for her own in Gauteng please help!

    • Kecia , 11 October 2012

      Hi Nomsa. If the RDP house in which your cousin’s mother is living is in your cousin’s name, then she can’t get another RDP house. People are only allowed one RDP house per household, ever in their lifetimes. However, maybe she could build a second house on the same property? She should should make sure with the municipality what the boundaries of her property are – and then if she builds on the other side there’s a chance in future that she could subdivide her stand into two halves.

  70. DAPHNEY MMOTA , 08 October 2012

    hI All

    Pleaase assist me with the subsidy house im staying with my In laws at the backyard i have two Kids Husband Ineed a house for my kids we are suffering.please advise what must ia do from here. if it is a low coat house it is fine.

    Thanks ‘DAPHNE MMOTA 0733472771

    • Kecia , 11 October 2012

      Hi Daphney. If you and your husband together earn less than R3500 per month, then you can qualify for an RDP house. If you earn more than that but less than R7000 you can qualify for a serviced stand from your municipality, although I don’t know if they have a programme yet in place. The Finance Linked Individual Subsidy Programme applies to people who earn between R3501 – R15 000, but you have to qualify for a mortgage bond in order to get it. I’m afraid its being implemented VERY slowly at the moment, however – not much is happening. You can call the NHFC for more information – they’re responsible for implementing the scheme: 011-644-9800.

  71. Thembi , 10 October 2012

    Hi im Themby im a mother of two renting a back room im working earning R5000 my boyfreind his a taxi driver and im blacklisted do i qaulify for this and what are procedures and which banks we go to please help.

    • Kecia , 11 October 2012

      Hi Thembi. I’m sorry but in order to access the subsidy you have to qualify for a loan, and you can’t get a loan if you’re blacklisted. What you need to do is resolve your credit situation: pay back all your debts and start saving for a deposit. Then you can clear your blacklisting (its not forever if you pay back your debts) and then you can get a loan and the subsidy. You do have some time – they haven’t started giving out the subsidy yet and it will be some time. If you go to the National Credit Regulator website, you can also find out about debt counselling: http://www.ncr.org.za. Good luck!

  72. Azwindini , 15 October 2012

    I want to know , i need a house which cost R345000 , how do i apply for that .

    • Kecia , 16 October 2012

      Hello Azwindini. If you earn less than R15 000 household income per month, you are eligible to apply for the Finance-Linked Individual Subsidy Programme, however you can only use this to buy a new house that costs less than R300 000. If you are set on the R345 000 house that you’ve found, you will have to forgo the subsidy and rather just apply to a bank for mortgage finance. For more information on the subsidy programme you can contact the National Housing Finance Corporation 011-644-9800.

  73. Nonhlanhla , 16 October 2012

    I would like to know that will my husband qualify for FLISP programme he’s self employed & roughly makes R5000 monthly but sometimes its a dry season as you know business is fluctuating & I get R3300 monthly

    • Kecia , 16 October 2012

      Hi Nonhlanhla. In principle, your household income of about R8300 should make you qualify for a FLISP subsidy, as well as for the mortgage finance that must go along with it (assuming you have no or little other debt). However, it is possible that if your husband’s income is informal, your loan affordability will only be calculated on your formal income. The best bet is to bring all of your details to your bank and ask them: bring three months bank statements, your contract of work, and evidence of repayment capacity – for example, a cellphone contract, or utility bill that you pay without falling into arrears. They’ll then explain to you how they would approach your individual situation. I should say that the FLISP programme is very slow in being implemented and there are very many people who want to apply. With your income you may find it more efficient to find a house on the resale market for sale and just buy that – you might find something cheaper than a new house, and even though the subsidy doesn’t apply, it might be more affordable to you.

  74. cheryl , 18 October 2012

    Hi. Kecia.. We have a combined monthly income of R 10000… I would like to know the following: would we qualify; where do we go about applying for this if we did and also how do we know iff the house we choose will allow us to utilise this subsidy?? Is there a site where more info can be obtained? Who can we contact in the kzn area? Many tnx

    • Kecia , 24 October 2012

      Hi Cheryl. I’m sorry there’s not a central website where you can get more information. In principle, with a household income of R10 000 you should qualify for the Finance Linked Individual Subsidy Programme (FLISP) – that is only if you also qualify for the mortgage loan you will need to finance the rest of the purchase price, and only if you buy a newly-built house costing less than R300 000 in a project that has been approved by the administrator of the scheme, the National Housing Finance Corporation (NHFC). Your best bet is to call them directly: 011 644 9800 and ask them to give you the details of who to call in the KZN area. That said, the implementation of the programme is extremely slow: as I understand it, no one has yet been awarded the subsidy, and only a very few housing delivery projects are currently included in the programme. But there may be developments in your area that I don’t know about so call the NHFC to be sure.

  75. Chris , 21 October 2012

    Hi kecia I just want 2 know if I wil qaulify for the housing subsidy if I have a income of R3000pm. This income is without deductions rent is R1050pm,account R400pm and the other money I buy food.so tell me wht change do I have 2 qaulify.advise please

    • Kecia , 24 October 2012

      Hi Chris. The RDP housing subsidy is for households earning up to R3500 per month. Applicants need to have dependents (a spouse, or children, or parents) that are part of their household, and income is calculated on the basis of all the money that all members in the household earn per month. If you satisfy all of these criteria, as well as others (you are a resident of SA, and have never owned a house before) then you should qualify for the RDP subsidy and this would allow you to join the waiting list for an RDP house in your area. To find out more about this programme, you need to call your local municipality and ask them about the waiting list, how to join, where there is housing, and so on. The FLISP subsidy is for households who earn between R3500 and R15 000. Its different from the RDP subsidy in a few ways. With the RDP, you get a free house; with the FLISP, you get money towards a deposit on a house – and you have to qualify for mortgage finance to access it. At your income, it is unlikely you’d qualify for enough finance to afford the cheapest newly built house, and the FLISP subsidy can only be used on new houses at this stage. I recommend you call your local municipality and ask them about the application process for the RDP subsidy. Good luck Chris.

  76. Chris , 21 October 2012

    I also wanted 2 knw if I qaulify where do I get the application forms what is needed and what is the first thing I must do.advise pls.

  77. Phindaphinda , 25 October 2012

    I ALSO WANTED IF I QUALIFY TO GET A SUBSIDY AND CAN I GET THE APPLICATION FORMS.

    • Kecia , 26 October 2012

      To qualify for the FLISP subsidy, you need to earn a household income of between R3500 – R15000, be able to access mortgage finance, and to afford the repayments for a house costing less than R300 000. You can only use the FLISP subsidy together with a mortgage loan. To find out more you can call the NHFC, the organisation responsible for implementing the scheme, on 011-644-9800

  78. Whity , 26 October 2012

    We want to know the subsidy

    • Kecia , 29 October 2012

      Hello Whity. I’m not really sure of your question, but perhaps this will help: The RDP housing subsidy is for households earning up to R3500 per month. Applicants need to have dependents (a spouse, or children, or parents) that are part of their household, and income is calculated on the basis of all the money that all members in the household earn per month. If you satisfy all of these criteria, as well as others (you are a resident of SA, and have never owned a house before) then you should qualify for the RDP subsidy and this would allow you to join the waiting list for an RDP house in your area. To find out more about this programme, you need to call your local municipality and ask them about the waiting list, how to join, where there is housing, and so on. The FLISP subsidy is for households who earn between R3500 and R15 000. Its different from the RDP subsidy in a few ways. With the RDP, you get a free house; with the FLISP, you get money towards a deposit on a house – and you have to qualify for mortgage finance to access it. To find out more about the FLISP subsidY, you can call the administrator of the programme, the NHFC: 011-644-9800

  79. Thandeka , 07 November 2012

    Hi Kecia,
    I would like to know how come a bond is paid for over 20 years? Can you not pay it in less than that if you feel you can afford to do so? I am asking because I am working on a five year contract as a government employee and I would like to get a place of my own instead of renting. I earn R13399.00 after deductions. Thanks

    • Kecia , 08 November 2012

      Hi Thandeka. A mortgage bond is usually structured to be paid over 20 years because by extending it that long, monthly repayments become more affordable, and increasing the amount of money you can borrow. Of course, this also means that the amount you pay in interest is higher – but again, because its spread over 20 years you don’t notice that as much. If you want to pay your bond back more quickly, you should discuss this with your bank. At your income, if you wanted to limit your bond to a 5 year mortgage at 11% interest, you could borrower about R179 373. Increasing the loan term to 20 years would mean you could borrow up to R377 838. Go and discuss your situation with your bank: maybe they will let you change the loan term to suit your contract.

  80. DEE , 12 November 2012

    Hi Kecia

    Do u know anything relating to the below statement:

    People earning R3 500 and R7 500 a month will put them into the so-called social-housing bracket.

    While those earning above R7 500 a month but below R15 000 a month will put them into the entry-level bracket.

    • Kecia , 16 November 2012

      Its an interesting statement Dee – I’m not sure where you read or heard this? The Finance Linked Individual Subsidy Programme (FLISP) is for households (not people – you have to have dependents) who earn R3501 – R15 000. In order to access the subsidy you need to link it with a mortgage loan to buy a new house, costing less than R300 000, and approved by the National Housing Finance Corporation (NHFC). However, people earning less than R7000 are unlikely to afford the size of the mortgage loan necessary to buy the house, even with the subsidy: if your income is R7000 per month, you could qualify for R63 375. This would mean that to buy a house for R300 000, you’d have to qualify for a mortgage loan of R236 625. At a 9% interest rate over 20 years, a household earning R7000 could feasibly qualify for a mortgage of about R233 000, if they had no other debt. But at R6500 per month income, the subsidy would be R66 760, meaning the household would need a loan of R233 240. If they could get a loan at 9% interest rate (very optimistic), they could only get a loan of about R216 000. So, at about R7000, the math which matches a subsidy with a loan to buy a house for less than R300 000 stops working. To deal with this, the FLISP subsidy offers an option for households earning R3500 – R7000, to access a serviced stand for free from the municipality, without any further cash. Its not clear if any municpalities are actively addressing this however. There is also a rental housing subsidy, called “social housing”, which is for households earning less than R7500 per month. SO, the statement means that for households earning R3500 – R7500, subsidised rental or ‘social housing’ is the most likely option (although there’s very little supply). Households earning more than R7500 start to be able to afford to buy the cheapest newly built housing on the market with the FLISP subsidy – and eligibility for this is for households who earn less than R15 000. Its complicated, but does this help?

  81. ntombenhle , 14 November 2012

    hi im earning 4200 a month is it possible for me to get the rent to buy house because im really struggling,my care take is telling me that he wants us out of his building he need to do business,so we going from one place to another because we dont have a place to stay please help

    • Kecia , 16 November 2012

      Hi Ntombenhle. It is possible that at your income you could qualify for the Finance Linked Individual Subsidy Programme (FLISP), which is for households earning R3501-R15 000, but the implementation of this programme is very slow so it is unlikely that it will help you in the short term. Rental accommodation in your price bracket is in short supply – although it does exist in some cities. You’ll need to find another place to rent in the meantime. Try to save as much as you can from your income so that you build a good deposit to get a house when your affordability improves.

  82. Wayne , 15 November 2012

    Hi Kecia

    Do you know if we will be able to get our government subsidy if we bought a house some 9 years ago. First time home buyer , bought house for under R 300 000.

    • Kecia , 16 November 2012

      Hi Wayne. I’m sorry, the subsidy does not apply retrospectively. I’m glad you managed to find a home to purchase.

  83. Asa Salie , 19 November 2012

    Hi, If a property is R200K and you qualify for the maximum subsidy enabling you to purchase the propery cash, how does it work?

    • Kecia , 19 November 2012

      Asa, you can only use the FLISP subsidy to buy a new house (costing less than R300 000) that has been approved by the National Housing Finance Corporation (NHFC). You can call them to find out what houses are currently available (011-644-9800). If you earn enough to get the maximum subsidy – that is, if you earn R3500, which qualifies you for a subsidy of R87000 – you would need to finance the remaining amount with a combination of savings and mortgage loan. I don’t know what happens if you’ve already saved the whole balance of the purchase price! That’s a good question to also ask the NHFC – let me know what they say.

  84. DEE , 22 November 2012

    Hi Kecia

    Do u know when this subsidy will start?

    • Kecia , 26 November 2012

      Hi Dee. Its hard to say! Officially, the subsidy policy was launched on 1 April 2012. From this date, the NHFC began entering into agreements with developers, provinces and banks to make all the different aspects of the programme work. It is because of this that the process has taken so very long… these agreements take time to finalise. Earlier this month, the MEC for Housing in the Eastern Cape announced that the first five beneficiaries had been awarded the subsidy: http://www.info.gov.za/speech/DynamicAction?pageid=461&sid=32028&tid=89621 So, the process is slowly beginning to take off. I would recommend you call the NHFC and ask them about the progress in your province and city. Their number is 011-644-9800

  85. Daniel King , 27 November 2012

    I need buy subsidy house. will you send me the details

    • Kecia , 28 November 2012

      Hi Daniel. It all depends on which subsidy you’re apply for. If you think you qualify for the FLISP (you earn a household income between R3500 – R15000 per month) then you need to contact the National Housing Finance Corporation. Their number is 011-644-9800. I’ve also recently come across this brochure, offered by the NHFC on their website: http://www.nhfc.co.za/files/FLISP_Brochure.pdf Take a look at that and feel free to come back to me if you have more questions.

  86. Mariam , 28 November 2012

    Hi me and husband bought a house 4years ago never received a first time home owner subsidy well we have to apply for a bond moving so a lot made my kids unhappy.What make me so unhappy second year into our bond I lost my job as company close and things become so easy for other people here I’m struggling to raise my kids nd paying my bond put food on the table only on my husband salary of less then R5000 a month,is heartbreaking going with the when I’m gonna loose my house nd here others get it easy what about us?struggling!

    • Kecia , 28 November 2012

      Hello Mariam. I can hear your frustration – I’m sorry that you’ve found yourself in this situation. Unfortunately the FLISP does not apply retrospectively. Still, you have a few options available to you. You should go and speak with your bank about your financial situation and ask them if they could come up with a temporary arrangement where you “reschedule” your loan repayments to allow for your current affordability challenges, while you search for a job. Depending on the value of your house, you could possibly sell it on the market and then with the amount you sell it for, pay back your mortgage, and have enough for a downpayment for a cheaper house that you could finance with a smaller mortgage that is more affordable. These kinds of things you should discuss with your bank. Don’t let your house go to foreclosure, however – that’s when the bank repossesses your house and sells it for you. One rarely gets the best price in that situation – its much better if you control the whole process yourself. Good luck with your struggle. Please talk to your bank – they need to be aware of what you’re thinking so they can help you.

  87. Sempie , 29 November 2012

    Hi Kecia

    How do we go applying for the housing subsidy, are there any forms to fill or offices to request the papers.

    Thanks
    Sempie

    • Kecia , 30 November 2012

      Hi Sempie. There are forms to fill in – you can get these from the National Housing Finance Corporation. They have a brochure on their website: http://www.nhfc.co.za/files/FLISP_Brochure.pdf Take a look at that and feel free to come back to me if you have more questions.

  88. Mzukisi Mali , 30 November 2012

    Hi there.

    I raised this matter with the President and was happy when my letter and my situation was known to all south african like me. this does or will not solve the housing problem in this country as long as there is a criteria for one to benefit. As a state employee who earn more that the stipulated amount, but the fact is I do not have a house which leads people like me to buy RDP from deserving beneficiaries who are not working but needs money. The solution to address this crisiss if for our government to use this money by building house for people to rent with the intention to buy. By doing so, they would be puting dignity to the people as your record will show that you need this house. But using Credit Act will not solve the problem. In my case, I can afford an RDP in the market as there will be no Credit Screening, as long as the money is availble, the seller will accept it from me and i will have a house for my family.

    Distressed

    Mzukisi Mali

  89. lydia , 04 December 2012

    Hi kecia!my Gross salary is R5000-R5500 and wants to know if I qualify for low cost house.what is it they are looking for in a payslip?is it Gross salary or net?do I qualify?my area has called for people to do survey about those houses and I put my name on the list but wants to know what my chances are pls reply me!

    • Kecia , 07 January 2013

      Hi Lydia – sorry for the delay. With your salary, yes, you should qualify for the FLISP subsidy, which will then reduce the loan finance that you would have to secure to afford the house. However, at your salary it will be very tight: on a gross salary of R5500, you would qualify for a subsidy of about R73 500. That’s quite a lot, but if the house costs about R300 000 (its unlikely it would be much less), you would then need to qualify for a loan of about R226 500. If you had no other credit outstanding, and if your credit rating is good (you’re not blacklisted) then you might qualify for a loan of about R160 000. Unless you have additional savings, that’s not enough. I’m sorry. To address people in your situation who won’t qualify for enough mortgage finance to afford a house, the policy offers an alternative approach: that you apply for a serviced stand for free, instead of the subsidy, from the municipality. You need to call your municipality and ask them if they offer this part of the policy.

  90. Mary , 05 December 2012

    Is the subsidy accessible and available as we wish to apply and do not know if it is the scheme is already operating or not

    • Kecia , 07 January 2013

      H Mary. Yes, the subsidy is operating although probably not as fast as we would all like. The implementing organisation is the National Housing Finance Corporation. You can reach them on 011-644-9800 or http://www.nhfc.co.za They’ve got a brochure that answers frequently asked questions on the FLISP that you can download: http://www.nhfc.co.za/files/FLISP_Brochure.pdf If you contact them, they can tell you where there are housing programmes underway for which the FLISP will apply.

  91. Busisiwe , 10 December 2012

    hi

    My mothers sister applied for a RDP house in 1996, and she hasnt had a house until today. she is getting old and her greatgranchildren are growing up finishing school. what can she do because she is still waiting? she only earns grant money from gov as a pensioner

    • Kecia , 07 January 2013

      Hello Busisiwe – I can only imagine your frustration! Your aunt’s wait has been very long indeed. I’m afraid she’s not alone, however. Very many people have been on the waiting list for over 10 years. I do think you should check that she’s still on the list however. Call or visit your local provincial office or municipality. Bring her ID and whatever proof she has of having joined the waiting list in 1996, and ask them to tell you when her turn will come. I wish you luck.

  92. Brenda , 11 December 2012

    Hi Kecia, My gross is R6400 and I was applying for a low cost house in the new development in Pelican Park in Cape Town where I was turned down and they were saying I need to earn a gross of R9000 and the cost of the house is R290.000.Is this possible. Now I am planning to apply jointly with my brother. Now I need to know if this will affect him in future if he gets married oneday and may be would want to apply for a normal subsidy in the bank

    • Kecia , 07 January 2013

      Hello Brenda. It is complicated, yes. At an income of R6400 per month, you could qualify for a subsidy of about R67 400. This would mean that on a R290 000 purchase price, you would need to access a loan of about R222 600. At your income, however, estimating a 20 year repayment period at 11% interest, and the commitment of 30% of your monthly income to repayment, you would only qualify for a bond of about R186 000 or so – and this is only if you had no other debt. You would need to bring up the balance of just under R40 000 from savings, in order to make it work. If your brother wants to help you, but doesn’t want to jeopardize his chances of accessing the subsidy in future, perhaps he should help you on the savings side so you have enough deposit to reduce the loan amount that you would need to pay for the house. If he jointly owns the house, and jointly accesses the subsidy, I don’t think he’d be eligible to apply again later. That said, we don’t know for how long the subsidy will be available. Your best bet at this stage is to save as much as you can so you can build up a sizeable deposit to make the loan you require more affordable.

  93. sanele , 04 January 2013

    Hi Our gross salary is R6000 i would to know if i qualify for the susidy, what are the procedures to follow and when this subsidy will start to be available, from cape town

    • Kecia , 07 January 2013

      Hi Sanele. Yes, you should qualify for the subsidy – you can call the NHFC to clarify. Their number is 011-644-9800. At your income, however, you are unlikely to afford enough mortgage finance as you’d require to buy a house with the FLISP subsidy. To address people in your situation who won’t qualify for enough mortgage finance to afford a house, the policy offers an alternative approach: that you apply for a serviced stand for free, instead of the subsidy, from the municipality. You need to call your municipality and ask them if they offer this part of the policy. Cape Town appears to be fairly advanced with this procedure.

      • lebo , 18 January 2013

        Hi kecia,my name is lebo,I just want to know which developers flisp is using in south africa,thanks

  94. Francy , 08 January 2013

    Hi Kecia, Where do we go apply? I have never benefited from any government projects and now i need to get my name on the list that gets people RDP houses and also try apply for FLISP since i earn R6000 and i reside in Alexandra, do they have any projects in Alexandra?

    • Kecia , 08 January 2013

      Francy, I’m not sure where they’re building in Gauteng, but you can check this with the NHFC – call them on 011-644-9800. At your income, you will no longer qualify for an RDP house, but the FLISP might be accessible.

  95. Shanti , 08 January 2013

    I earn R5300 a month and my husband has his own small transport business. This brings in R8000 a month. This is more or less what we have to work on.My husband had two bad credits which we paid off one in Nov 2011 and one in April 2012. They are still on the credit profile although they are paid off. Would I still qualify for normal mortgage and first time homeowners assistance and how much would we qualify for.

    • Kecia , 10 January 2013

      Hi Shanti. Well done on resolving your credit situation! That’s a very good first step. Yes, a normal mortgage is what you’d still apply for, and the FLISP subsidy. At your income, you should be able to apply for about R56 000, so that would mean you’d need to qualify for a mortgage of about R244 000 (assuming the purchase price of the house is about R300 000). You should go to a bank to see how much of a mortgage you will qualify for, but it will be tight, unless you have savings. So, to generate savings, you should start your nest egg now: put away something each month. This will show the bank that you have a capacity to save and pay, and it will also give you money with which to reduce the loan amount for which you have to apply. For more information on the FLISP subsidy and how it works, and how you apply (there are projects only in some cities) call the NHFC on 011-644-9800

  96. vicky , 16 January 2013

    Hi Kecia, I earn R5500 a month and wants to by a house. i see that i qualify for the subsidy, but can i apply for this subsidy if i want to buy a house that is not new?

    • Kecia , 05 February 2013

      Hi Vicky. I’m sorry but the subsidy only applies to new housing at this stage. It is possible that over time, the policy will be amended to include resale stock, or second-hand housing, but right now the FLISP can only be used to buy a new house that costs less than R300 000, and which has been built by a developer in a project that is approved by the NHFC. At your income, it is unlikely you’d be able to manage a bond for a R300 000 house, even with the FLISP subsidy. You are in what they call the “gap market”. There is a clause in the FLISP policy, however, that says that those people who earn R3500 – R7000 can apply to receive a serviced stand for free from the municipality. Not many municipalities have started this programme, but its worth checking with yours to see if that’s a possibility. If you can get a serviced stand, then you could use your savings to build your home incrementally, step-by-step, over time. Its not ideal, but you would own the land and you could build what you liked, and this would grow in value over time. Speak to your municipality and see what the options are.

  97. Melanie , 29 January 2013

    hi Kecia, what assistance is offered to people on state pension. Waiting list for tafta homes in durban are very long andJHB does not seem to have any options.I am trying to assist a 60 year old lady frn accomodation.She has no income other than state pension and the options seem very limited.She is happy as long as she can find something in either JHB or Durban

    • Kecia , 05 February 2013

      Hi Melanie. I’m afraid the policy doesn’t distinguish by age so there is no special provision for pensioners. With a state pension as her only source of income, she should qualify for an RDP house but the waiting list is indeed very long. Your best bet is to enquire directly with the municipality. One question to ask them would be this: if she could find a second-hand RDP house for sale, would they give her an individual subsidy to use to purchase it? This has happened before. She would have to find a house that is older than 8 years (RDP houses less than 8 years old cannot be sold), that the owner is willing to sell. The market price for these is often close to the value of the subsidy. Unfortunately there is no list of such houses for sale, however – she’ll have to use word of mouth.

  98. Phumi , 05 February 2013

    Hi would like to know if do I qualify for the subsidy I am currently earning 6500 but I am employed by a labour broker (QUEST). Do banks give mortgage to temporary employed people and do I qualify for the subsidy?

    • Kecia , 06 February 2013

      Phumi, you will have to discuss this with your bank. If you can demonstrate employability and a certain level of longevity in your employment, you may well manage to convince a bank to give you a loan. A mortgage loan is more difficult, however, because it is a 20-year commitment. The bank needs some way to trust that you will be able to pay your monthly commitment for that entire time. One way of addressing it is by building up a savings record, and in fact using savings towards the purchase price of your house so that the amount you need to finance with a mortgage is a smaller percentage of the overall value of the house. You’re right – you only qualify for a subsidy if you can access a mortgage loan to pay the difference of the purchase price. Visit your bank and discuss your situation with them: bring all the documentation you have (your contract with Quest, etc.) to prove regularity of income, and see what they say.

  99. Mr Ndibi , 10 February 2013

    Hi the Kecia… Let’s say I wanna trick the Gov, I get my uncle to buy land and build a new house then sell it to me as a new house. Will the subsidy approve such? I currently earn R8000 and sure won’t find affordable new houses in the Eastern Cape…?

    • Kecia , 12 February 2013

      Hello there – yes, that could be a good trick, but I’m afraid the government has already thought of that. In order to qualify for the FLISP subsidy, you need to use it together with mortgage finance to buy a new house costing less than R300 000 in a project that has been approved by the National Housing Finance Corporation. That’s the catch: the house has to be new, and has to be in a project that the NHFC approves. If your uncle wishes to develop a number of houses together in a project, and if he manages to get the NHFC to approve his development (he would have to be registered as a formal developer with the National Home Builders’ Registration Council, and meet various other criteria), then you could apply to buy one of his houses with the subsidy and mortgage finance. But, even if that happens, it will take a very long time! If you want to apply for the subsidy, you’re better off calling the NHFC and asking them to direct you to existing projects.

  100. cindy , 13 February 2013

    Hi Kecia. I earn about R5300 mnth. Can I apply for the subsidy as a single mom? I’m really desperate and have 1 child.

    • Kecia , 20 February 2013

      Hi Cindy. Yes, you certainly can apply as a single mom – however at your income, it is unlikely that you’ll qualify for enough mortgage finance to cover the purchase price even after the subsidy is deducted. For your income group, the FLISP offers a different option – that you apply for a serviced stand from the municipality, and then build your home incrementally on it, over time. The serviced land you get for free, and then you finance and manage the construction of the house yourself. The problem with this policy is that municipalities are very slow in implementing it – there don’t seem to be administrative arrangements at the local level to accommodate this policy option. I would recommend that you contact your municipality and ask them directly how they are dealing with this. Show them the policy and tell them to look at Section 5 on Page 7. You can download the subsidy policy from this link: http://www.housingfinanceafrica.org/document/finance-linked-individual-subsidy-programme-flisp-policy-as-of-1-april-2012/

  101. Phillipine , 19 February 2013

    Good day Kecia, I have a problem, I had unpaid accounts that I had like 6-7 years ago,I’m starting to pay them off, have already paid one in full, so the problem is I have applied for the flats that are being build in Alex, I earn R4000 and they said i qualify but now I’m worried cause of my credit record. Will it help if I pay them off now, or will my name still remain in the bad credits file, cause they screen us before we can actually apply for the flats.

    • Kecia , 20 February 2013

      Hello Phillipine. Well done for having resolved one of your unpaid accounts! You must carry on: its very important that you pay of your bad debts as soon as possible because a bad credit record can limit your access to housing, even if you’re renting. You’re right, your credit record won’t clear immediately, but I think you can apply to the National Credit Regulator to have it cleared, and you can also show your landlord that you’ve been paying it off well. That will count for a lot. You are entitled to one free reading of your credit record per year, I think. If you visit the NCR website, you can find out more, and also the process you need to go through to clear your credit record. Here’s a link: http://www.ncr.org.za/index.php?option=com_content&view=article&id=6 Good luck!

  102. Princess , 20 February 2013

    I earn gross income of R8700 would I qualify for vacant serviced stand. and also if you do receive the subsidy (not the vacant serviced stand) is it compulsory to have credit link provider to loan you the balance

    • Kecia , 20 February 2013

      Princess, the policy says that the vacant stand is available only for qualifying beneficiaries who earn between R3501 and R7000 per month – but at your income, you would probably struggle to qualify for mortgage finance to buy a R300 000, even with the subsidy. You can only get the finance subsidy if it is tied to a mortgage. You’re in a funny gap that the policy doesn’t seem to recognise. I would call the NHFC anyway and put the question to them: 011-644-9800. The policy has been out for a year now – it is possible that the thresholds will be revised.

  103. AM , 22 February 2013

    I earn gross of R4000 and i’ve applied for the vendalised house is it possible for me the get the subsidy in order to fix the property.

    • Kecia , 25 February 2013

      Hi there. I’m afraid you can’t use the FLISP subsidy to purchase an existing property: it needs to be a new house in a development approved by the NHFC. While they may change the policy in the future, its currently limited to new housing.

  104. Lubha , 27 February 2013

    Hi Kecia, Why Cape Town don’t have any developments less than R300, 000. It look like this FLISP subsidy is those who staying from other provinces only not for Capetonians.

    • Kecia , 01 March 2013

      Hi there. I hardly know how to answer your question. If the FLISP subsidy has a restriction that says you can only buy new houses costing less than R300 000, of course there SHOULD be such houses available, else the FLISP is irrelevant. I wish I could tell you more. I am pretty sure that there is a FLISP project in the Western Cape – there is supposed to be one in each province. But as you say, this is hardly scratching the surface. There is demand for far many more houses in this price bracket.

  105. jeffery , 01 March 2013

    Hi, Kecia let me 1st take a moment to thank you for the good advise that you give , God bless you. i am currently 23 yrs single and the bread winner at home i currently earn R4800 and would like to buy a house my mother is no longer working as she is a pensioner what can i best do

    • Kecia , 04 March 2013

      Hello Jeffery, thanks for your post. At R4800 per month, and given that you have dependents, you should be able to apply for the FLISP subsidy. However, your income is not enough to qualify for the mortgage that you’d require in order to afford a house of about R280 000 or R300 000 – even with the subsidy that you could get. For people in your category, the policy offers a serviced stand in stead of the subsidy – that is, the municipality would give you a piece of land, in your name, with services (water and sanitation). You would then have to use your savings or a micro loan to build the house on that land. The process would take you longer – you’d have to build the house at the pace you could afford – but at the end of the day, you’d have a home that you owned. The problem, however, is that not many municipalities have implemented this part of the policy. I would recommend you contact your local municipality – call the housing or human settlements department – and ask them if they have implemented this aspect of the policy and how you would go about applying. Good luck.

  106. zeenith van wyk , 07 March 2013

    Hi Kecia
    I am divorced from my husband and could not qualify for a bond on my own at the bank.My brother and i went for a combined bond so that i can also have a place of my own .I live alone with my 3 children and i’ve purchased a resale house for R230.000.My earning is R6500 before deductions.The bank do a debut order of R2520.If i pay my acounts,schoolfees ect theres almost no money left for the whole month for food. As i’ve read all you’re comments my house is less than R300 000 but it is not a newly build house.Does that mean that there is no subsidy for single mothers that has to go that extra mile to purchase a house as the waiting list is so long you will have to wait 20 years before you’ll get a house from council.Why is the government only catering for a certain group of people .If you earn less that R8000 you dont qualify by the bank for a homeloan which means that the goverment cannot help you nor will you be able to purchase a house on you’re own from the bank.

    • Kecia , 07 March 2013

      Hi there. Your situation sounds so hard, and yet you’ve already done so well. Congratulations for finding a house for R230 000, and well done to your brother for helping you. I’m afraid that there is no subsidy in the housing sector that is explicitly targeted at single mothers, and the income bracket into which you fall is a very real gap in the policy framework. The policy focus on people earning R3500 and less is legitimate, but there should also be explicit attention to the bracket in which you find yourself. I wish I could say it were different. I think the FLISP focus on new build is for two reasons: first, government wants to directly influence the construction of new houses. There is a housing backlog in South Africa, and they want to see new houses built to combat the backlog. Second, they’re nervous about the potential for fraud if you could use the FLISP subsidy to buy a house on the resale market. While I understand these reasons, I don’t really feel they are valid. Of course we need more houses, but the seller from whom you bought your house then had money to spend, and may have bought a new house, which ultimately adds to the total supply. And fraud is a problem everywhere – its just a matter of designing the right systems to minimise the risk. What can I say to you? I wish you good luck in managing your budget and hope your income can improve. By telling me of your situation, I can show this to the policy makers, and maybe it will make a difference to their thinking. Good luck.

  107. Pertunia , 16 March 2013

    Hi my name is pertunia i earn 2300 a month,my brother earns 2500 a month,n my mom gets 1200 for disability n 840 for my younger siblings,so we are 6 children 2 my mom,i wnt 2 knw what subsidy do we qualify for.

    • Kecia , 19 March 2013

      Hi Pertunia. Your total household income is about R6840 per month. I think that would qualify you for a FLISP subsidy – although at your income and with your expenses it is unlikely you’d qualify for enough mortgage finance to take advantage of the subsidy. You fit into the category that the policy says is eligible for a serviced stand (that’s a plot of land with services, but no house – that you have to build yourself) – however this is not yet being offered by many municipalities. I would call the NHFC and ask them what they think you should do. Their number is 011-644-9800. The other option is to call your local municipality and ask them – perhaps they have developed a programme for people in your income category. I know that the City of Cape Town is working in that direction. Good luck

  108. Althea Lodewyk , 22 March 2013

    Me and my husbands combined income is R 5700 , we want to know will we be able to qualify for flisp , we have got a pro perty we want to buy it cost R 50000 ,

  109. Lee-Ann , 25 March 2013

    Hi, I would just like to know if this has to be a RDP house that needs to be purchased in order to qualify for the subsidy. . . or can it be just a normal old home that was built 20-30yrs ago. Thanks in advance.

    • Kecia , 27 March 2013

      Hi Lee-Ann. This is the most common question on this website. No, you cannot use the FLISP subsidy to buy a home that was built before. I know it seems crazy that the FLISP subsidy can only be used for a newly built property: homes available on the resale market are often cheaper. The reason for this limitation is that the government is worried about fraud – it would be easier for fraud to happen if the government didn’t have control over who actually built the property. The other reason is that the government wants its money to directly impact on new housing delivery. Personally, I don’t think these are good enough reasons, but that’s the way it is for now. Hopefully things will change as the implementation of the FLISP becomes more familiar.

  110. ricardo , 27 March 2013

    hi there what are the chances i get a government housing subsidy my partner and i combine salary is R10699.00 we getting married later in the year and have 2 kids i put in a offer to purchase for a house of R310k im a first time home buyer i would like to know ,im just a bit confused, i live in the western cape southern suburbs area?

    • Kecia , 15 April 2013

      Hi Ricardo. With your combined income, you should be eligible to apply for the FLISP subsidy. However, in order to be approved, you would have to have never owned a property before, would have to qualify for mortgage finance to pay for the difference between the purchase price and the subsidy, and would have to buy a house that costs less than R300 000. Unfortunately, as I understand the policy, the R310 000 house wouldn’t qualify. You seem to have some time to look further, though. Call the NHFC or write to them and ask them about what the approved projects in the Western Cape are- and also confirm whether I’m right about that R310k house. Their number is 011-644-9800 or you can email them on FLISP@nhfc.co.za.

  111. Michael Kihato , 01 April 2013

    Dear Kecia, this was the latest on the FLISP from the President’s State of the Nation address on 14 February:
    • From April 2012 to December 2012, Provincial Departments committed a budget of 126 million rand for the FLISP
    • The money is being used through the National Housing Finance Corporation, which has been appointed to deliver houses to people within the Gap market in twelve registered projects
    • A total of 70 million rand of this amount has been used to date
    • Projects include Walmer Link in the Eastern Cape, Lady Selbourne, Nelmapius, Bohlabela Borwa, Cosmo City and Fleurhof in Gauteng, Intabazwe Corridor Housing in the Free State and Seraleng in North West.

    • Kecia , 15 April 2013

      Thanks Michael – this is very helpful. Interesting to think about how far R70 million would go – while it sounds like a lot, if you assume that the average subsidy might be R40 000 (noting that higher income earners get less and lower income earners get more), this translates into about 1750 subsidies. That’s less than the number of people that have read this blog. I’m hoping that with time the pace of implementation will pick up and more people can be served.

  112. John , 04 April 2013

    Hi Kecia,thanks for shedding light on this subsidy topic. My question is,is the subsidy only available to first time home buyers or could someone who owned property previously also apply?I have owned property before but because of my divorce we had to sell the property as per court order and now i`m in the boat the estimated 20% worforce of SA find thenselves in of qualifying for a bond.
    Best regards
    John

    • Kecia , 15 April 2013

      Hi John. The subsidy is only available to first time homebuyers – I can see that your situation is somewhat unique, but even in this case, I believe that because you owned the previous property, you are not eligible now. You might want to email the NHFC to be sure however: flisp@nhfc.co.za You’ll probably find that you have to downsize to a smaller property and use the equity that you gained from the sale of your house – that which you were able to keep as part of the divorce agreement – as your deposit. In the meantime, save as much as you can – this is especially important for banks when approving individuals for bonds who are at the edge of their affordability. They want to see that you can save, and then you can use this for your deposit to reduce the size of mortgage for which you apply.

  113. Bonge , 05 April 2013

    Hi I need to know do I qualify for rental if Im blacklisted and where to apply for it in KZN Durban?

    • Kecia , 15 April 2013

      Bonge, I suppose it depends on the landlord – some landlords do undertake credit checks and will refuse to rent you property if you’re blacklisted, but I’m not sure if all have that criteria. What is important is that you pull together the necessary documentation that shows that you’re recovering from your credit crisis, that you’re repaying your debt, that you have disposable income, and that you can afford the rent. I think the best organisation to contact in this regard is the Tenant Profile Network: http://www.tpn.co.za As for rental housing in Durban, I’m afraid I don’t have that information. Perhaps you could call your municipality and ask them?

  114. Londiwe Radebe , 12 April 2013

    Dear Kecia,

    i just called NHFC now and spoke to a lady by the name of Dikeledi, she said to me I must get the house first and then get it approved by the bank then I can get back to the to apply, but she said it must be any house not necessarilly a new house.
    is this info correct?

    • Kecia , 15 April 2013

      Londiwe, thank you so much for this post – I got so excited that I called the NHFC and got this information: YES, it is true that in GAUTENG you can use the FLISP subsidy to buy a house on the resale market. This individual programme is not yet available in other provinces, but in Gauteng its been agreed to go ahead. If you live in Gauteng, the way you go about the system is as follows: 1. Find the house you want to buy, and make sure it costs less than R300 000. 2. Apply to the bank for a mortgage for that house – and ask them how much they’ll approve you for. You can tell them that you’re also applying for the FLISP subsidy. 3. Once you get the approval from the bank, take that to the NHFC (they have four centres in Gauteng – in Ekurhuleni, West Rand, Central Gauteng and Tshwane). The NHFC is committed to respond to your application within 7 days – they basically check that you’ve never had a housing subsidy before, that you’ve never owned property before, and that you satisfy the other criteria for the FLISP. 4. When they approve you, I presume you go back to the bank to show them this contribution towards your deposit for the house – they then revise the bond that you’ll get, and all of these documents are then submitted to the transferring attorney who processes the sale. If you have an estate agent, they can help you with this process. 5. Lastly, when the sale goes through the NHFC pays the money to the transferring attorney. I’m going to write a more detailed blog about this as soon as I get more information from the NHFC. Thanks so much for alerting me to this shift in the policy! Its a very exciting development and I’m sure many people will be excited to hear.

    • Kecia , 16 May 2013

      Hi Londiwe – thanks again for notifying me of the developments with the FLISP subsidy. You are right, the subsidy can now be used for the resale market, and to buy vacant stands in a number of provinces. Take a look at the blog I’ve just written on this: http://www.housingfinanceafrica.org/blog/flisp-housing-subsidy-extends-to-resale-market/ I hope you manage to address your housing needs with this new development in the policy.

  115. Slindile , 13 April 2013

    Hi, me and my husband dont qualify for the FLISP subsidy, since we earn more than R15000 p/m, however we still cannot afford most of the houses in the area. We live in Durban and decent houses costs R500000 or more. We are what you call the middle incomers, and its very sad that the government has done so little for us, yet we are the majority of the tax payers. There are developments like Cornubia in Durban but there is no information of how one applies for these houses. I will the government would look into this, its nice to take care of the people on the ground who earn little, but they are not the only South Africans, we feel robbbed.

    • Kecia , 15 April 2013

      Dear Slindile – thanks for this post. I think its a very important issue. Housing affordability is a problem for very many people, and not just the most poor. The difficulty is that there are just so many people who earn less than R15 000 household income per month (about 85% of the population) that government really cannot afford to support more widely than it already does. Your income places you among the top 15% of households in South Africa. In terms of our tax policy, houses that cost less than R600 000 (I’m pretty sure this is the amount) are exempt from transfer tax – but that’s the only benefit that might apply to you. I think you should be able to find some houses below R500 000 in your area, however. Take a look not just at new housing, but also at the resale market. Sometimes, you can find a house that hasn’t been renovated for a very good price. Also, use the time while you search to save up so that you have a good deposit with which to buy the house that you finally find. This will decrease your mortgage payments and will make the move more affordable. Good luck.

  116. Penelope , 23 April 2013

    Hi Kecia

    Whats your take on the propposed tax incetive to encourage developers to build more housing unit priced below R300 000. Do you think this will inticing enough for developers to venture into the ‘gap’ market? Also from research the ‘gap’ market is identified as housing stock priced between R250 000 to R300 000 do you think this is a realistic measure? Finally what other complementary measures do you think are necessary that government can implement to complement the tax incentive. Just from reading from your blog it is clear that there is a huge demand for housing which is not met in terms of supply.

    I look forward to your response.

    • Kecia , 25 April 2013

      Hi Penelope – thanks for raising this very good question. The tax incentive was announced last year and nothing has happened yet. I do believe that developers face unique challenges in building in the gap market – from the limited affordability of their clients through to the high cost of bulk infrastructure connections and processing delays at the municipal level. If the tax incentive can make delivery in this market a more commercially realistic proposition, that would be great. We certainly need more supply in this market. That said, I also feel the tax incentive should not just make it financially more attractive, but should also be structured in such a way that the current logjams (such as those at municipal level) get addressed. In the long run, the level of demand in this market should be enough to entice developers to operate in this space.

      You ask what the definition of the ‘gap’ market is. Households who earn more than R3500 per month cannot access the RDP housing subsidy, so their affordability should begin to define the gap: this is somewhere in the region of R150 000! At the moment there is nothing being delivered in this price bracket (other than the RDP house itself). The cheapest newly built house in SA is about R270 000, but supply is limited (and yet this is one of the fastest growing markets). And the ‘normal’ market kicks in at about R500 000 per unit. The FLISP subsidy policy says that it is only for houses costing less than R300 000. So what is the gap? We need houses that cost as little as R150 000 through to R500 000. The bulk of this affordability is at the bottom end of that range and in order to get a subsidy, they must cost less than R300 000. This is why the tax incentive is supposed to also target this market.

      Is this realistic? From a supply side, I see that there are constraints and while on the one hand its about building cheaper houses, on the other it is about making the housing delivery process cheaper itself – and this is something that falls substantially on local government’s shoulders. From a demand side, however, its entirely realistic: 60% of SA’s population has an income that would make them eligible for the RDP housing subsidy – although some of these already are suitably housed, those that aren’t comprise a waiting list that is more than ten years long. Only about 15% of SA’s population earns an income sufficient to afford the cheapest newly built house. This leaves about 25% of our population in the gap in the middle. They are working individuals, too rich to get the RDP subsidy and too poor to afford what is currently available on the market – this gap has to be filled.

  117. bernie , 28 April 2013

    Good evening

    I would like to know if I will qualify for pelican park gap housing if my gross salary is R6500 per month and I get extra income from selling avon products and toilet paper.

    Thank you
    Bernie

    • Kecia , 29 April 2013

      Hi Bernie. I see the New Horizons Gap houses at Pelican Park are advertised at R290 000, with a R2000 deposit required. You need to check with the NHFC if they have included this project in the FLISP subsidy scheme. If they have, you may well be able to afford the mortgage required to buy this house – but that depends on your other expenses and whether or not you have any other debt. Call the NHFC on 011-644-9800 or email flisp@nhfc.co.za. Unfortunately, the other income you get from selling things will probably not count towards your affordability calculation because it is informal – but check this with the bank just to be sure. What you should do in the meantime is save as much as you can on a monthly basis – this is for two reasons. First, if you save monthly, you demonstrate financial discipline – this is important for the bank when they are deciding whether or not to give you a loan. Second, the amount you save can be used towards the cost of the house, which will reduce the amount you have to borrow. Call the NHFC first to see if Pelican Park houses qualify for the FLISP, and then take it from there.

  118. Solly , 29 April 2013

    I am earning 7500 and my wife 5800, is it possible to combine salaries if i have more debts but managing to pay them? what should i do when i have been called to complete the process of application?

    • Kecia , 10 May 2013

      Hello Solly. With a combined income of R13 300, you should qualify for the FLISP subsidy – and yes, you must combine salaries because FLISP eligibility is evaluated on household income, not individual income. The amount of mortgage finance for which you qualify will be the deciding factor on whether you can afford to buy a house – and that depends on the extent of your debt. You need to visit your bank and discuss all of this with them – find out how much you’d qualify for, the two of you together, and then see if this is enough to be able to meet the purchase price of the house together with your subsidy and any savings you might have. Have you called the NHFC yet? They should explain the whole process to you. 011-644-9800

  119. Vusi , 01 May 2013

    Hi Kecia

    I’m single live in JHB,earning 5500. p/m .
    I’m very interested to buy a house.
    I would really like to now how much subsidy would I qualify for if I get a re-sale house of R300 000

    Thank you!

    • Kecia , 10 May 2013

      Hi Vusi – the fact that Gauteng allows you to buy a resale house with the FLISP subsidy is very good for you – at your income, it is unlikely you’d afford enough mortgage finance, even with your FLISP subsidy, to buy a R300 000. But the resale market has cheaper houses, so you may just be able to make it work for you – that is, if you don’t have any other debt. Assuming you have no other debt, this would be your situation: with an income of R5500 per month (household income, and also assuming you satisfy all the other FLISP criteria), you should be able to access a subsidy of about R73 500. Meanwhile, if you qualify for a mortgage, at an interest rate of say 11% over 20 years, you could possibly qualify for about R159 000. Add this to your subsidy and you have a potential housing affordability of about R232 500, and a responsibility to pay R1650 per month for 20 years (which means you need to be in stable employment). If you feel you can handle this, you should then consider looking for a house for less than this amount, and also start to save, to pay for all the moving and other costs associated with buying a house.

  120. Seeiso , 08 May 2013

    Our Government is doing a great job with this FLISP subsidy, but as a hard working citizen of this country I also feel our tax money must be put to good use. The Government must be financing 50% if the mortgage required to buy lets say a R300 000 house.

    • Kecia , 10 May 2013

      Hi there. I’m not sure I understand your comment. The FLISP subsidy amounts range from R87 000 for a household that earns R3501, to R10 050 for a household that earns R14 901. However, households can only access the subsidy if they also qualify and access mortgage finance for the difference. The government put the R300 000 restriction on the purchase price to make sure that the subsidy was only used for entry-level properties; and only first time home buyers qualify. Does this answer your question?

  121. Mandy , 09 May 2013

    Good day, I work for government and earn 10000 gross my husband works in a facroty and earns 8000 gross he has a good credit record whilst I dont, we married in community of propery what are the chances of getting a flisp susbidy? can my husband apply on his name only? on two occation we have applied for joint bond and we were turned dow due to low scoring. Thanking you in advance.

    • Kecia , 10 May 2013

      Hi Mandy. I’m afraid with a R18 000 household income, you can’t apply for a FLISP subsidy – the income threshold is R15 000. You can’t apply as an individual either, because one of the requirements for the subsidy is that the income is calculated across all household members. To improve your credit scoring, you need to pay off all of your debt and begin to save, a regular amount every month. This will demonstrate to the bank that you have the financial discipline necessary to take on a 20-year responsibility to pay off a bond, and your credit score will improve. Good luck

  122. Thandie , 09 May 2013

    I would like to know if I will qualify for this FLIP susbidy because I am blacklisted and married in community of property, and also is it possible for my husband to apply for it in his name?

    • Kecia , 10 May 2013

      Hi Thandie – you pose a good question. In order to qualify for the FLISP you need to also qualify for mortgage finance – the two go together. If you’re blacklisted, you won’t be able to access the mortgage finance and so you won’t be able to get the FLISP either. But if your husband isn’t blacklisted, its possible, perhaps, that the mortgage is tied just to him. That would limit the amount of mortgage finance you could get – affordability would just be calculated on his income. I would double check with the NHFC – ask them if your husband can apply for the FLISP and the mortgage,given that you’re blacklisted. I’ll see if I can get an answer from them soon too.

  123. Thandie , 09 May 2013

    I am earning 7200 and my husband earning 6500 monthly.

    • Kecia , 10 May 2013

      Hi there. With a R13 700 household income you should be able to qualify for the FLISP. However, you can only access the FLISP if you also qualify for mortgage finance. Then, you use both the subsidy and the finance to buy a house that costs less than R300 000.

  124. Yonelisa , 09 May 2013

    Do goverment employees qualify for this if they earn R3500 to R15000.Also,do people who are not first time home owners qualify?

    • Kecia , 10 May 2013

      Hi Yonelisa – yes, government employees do qualify if they earn within the income range. However, you must never have owned a house before.

  125. Xoliswa , 09 May 2013

    Helo Kecia my husband earns R8000 do we qualify? If we do which number can we call for assistance around Pretoria help please!

    • Kecia , 10 May 2013

      Hi there – if the total income of your household is less than R15 000 per month, then you should qualify – as long as you also qualify for mortgage finance, and you have never owned a house before. There’s a new aspect to the policy that applies in Gauteng – you can use the FLISP to buy an existing, resale market house. This is great news because resale houses are often cheaper. Find out from your bank how much mortgage you qualify for, and then add this to the amount of FLISP subsidy you think you could get (at R8000 household income, you could qualify for about R57 000) and that will give you a rough estimate of the purchase price you need to look for. Once you find some place, you can call the NHFC for more information about next steps. They do have an office in the Pretoria area, I think – call their Joburg office and they’ll help you: 011-644-9800

  126. nandy , 09 May 2013

    Good day im about to buy a house of 450 000 my basic salary is 6300 im working on a commission structure which come up to 7 to 8000 do I qualify for a subsidy

    • Kecia , 10 May 2013

      Hello Nandy. I’m afraid you can’t use the FLISP subsidy to buy a house that costs more than R300 000. At a basic salary of R6300, however, its unlikely you’d qualify for a mortgage of more than R180 000 – R200 000. Go to your bank and find out how much mortgage you qualify for, given your income. Add to this whatever savings you might have. Then, if you find a house that is less than R300 000, you should be able to get a FLISP subsidy of about R56000 – R66 000, depending on your actual income. So, adding the mortgage + subsidy would give you about R256 000. That’s the price range you should be looking at.

  127. Rhulani Ndlhovu , 10 May 2013

    Hi I would like to apply for a housing susbidy, however i am 26 years old and i earn R3500 a month and i do not have any children, i am not married do i qualify for this susbidy?

    • Kecia , 10 May 2013

      Hi Rhulani. I”m afraid you have to have dependents in order to qualify for the FLISP subsidy. Its likely, however, that even if you did have dependents, at R3500 you wouldn’t qualify for enough mortgage finance to afford a house even with the FLISP subsidy – unless you live in Gauteng, where resale market houses are included in the programme. Start saving for your housing now so that when you do have dependents, when the time in your life is right, you’ll be ready to make the investment.

  128. Tumelo , 10 May 2013

    Hi Kecia. How possible is it that the FLISP prorgam can be utilised to house those people who want to live in newly established housing co-operatives. Won’t the element of co-operation empower them to use collective salaries to build and own their houses with the subsidy of FLISP given the housing market that is out of the required range?

    • Kecia , 15 May 2013

      Hi Tumelo – I’m actually not sure if the FLISP can apply to people living in housing co-operatives. I’ll check for you, but I believe it is restricted to full and sectional title. However, the social housing subsidy may well apply to you. Take a look at the information on the Social Housing Regulatory Authority’s (SHRA) website: http://www.shra.org.za.

  129. Boitumelo Masote , 10 May 2013

    Hello
    I’m a Single Mothe with Good credit Record and Earning R9000, i need a house for my 4yearl boy as we are struggling with renting places, i need a stable home.

    Will a qaulify for this?
    And when is this Project come to gauteng and Where can one Enquire for Application as well

    • Kecia , 15 May 2013

      Hi there. You’re in an excellent position with an income of R9000 and a good credit record. As a single mother with that income, you should be able to apply for a FLISP subsidy of about R49 000. And, with a good credit record, it is possible that you could qualify for a mortgage of about R260 000. The maximum value of a house that you can buy with the FLISP, however, is R300 000. So, this is what you must do. 1. Find a house you want to buy – you can either buy a new house in an approved project, or in Gauteng, you can also use the FLISP to buy an existing house on the resale market. 2. Once you’ve found the house, and you’re sure its the right one for you, put in an offer to purchase, conditional on you securing finance and getting a subsidy. This just shows the seller your interest. 3. Then, you need to go to the bank and apply for a mortgage for that house. Tell them that you intend to also apply for the FLISP, and that you need an approval from them to take to the NHFC (National Housing Finance Corporation – the administrators of the subsidy programme). 4. Once you have this from the bank, take all these documents to the NHFC. They’ve got a number of offices in Gauteng, so call them on 011-644-9800 to see which office is closest to you. Also check this site again – in the next couple days I’ll be posting a new blog on how the subsidy system works, and some new documents from the NHFC. Good luck!

  130. zanele mkhize , 10 May 2013

    Dear All,

    kindly assist me is it possible to apply for this Govermenet Subsidy when you already have a house that was bought last year with Cosmopolitane?
    the house worth R286000?ihave already paid bond for 5or 6 instalment

    • Kecia , 15 May 2013

      Hello Zanele. Congratulations on having bought a house already – there are not so many available, so you are lucky to have bought one. I’m afraid the subsidy is only available to people who have never owned a house before, however, and you cannot apply retrospectively. I wish you much happiness in your home.

  131. Sbu , 10 May 2013

    I earn R11500, how much would i qualify for? and can i apply for this subsidy as rather a Building Loan and purchase vacant land at a safe and secure environment for my children… I have seen a plot on the market for 160K and use the remaining amount to build the house on that plot.

    • Kecia , 16 May 2013

      Hi Sbu – At your income, and if you qualify, the amount would be about R33 000. YES, you can use the subsidy together with a mortgage to buy a vacant stand on which you plan to build a house – this is a new development, and I’m so excited about it. It means that there are now many more options available to people! Take a look at the blog I’ve just written on how the subsidy works. At the bottom of the blog, there are links to the NFHC’s documents, providing information on how much you qualify for, where to apply, and what the conditions are.

  132. greg , 10 May 2013

    The house is worth 472 000 and my net income is R20 000 and my wife is unimployed do I qualify for a the subcidy?

    • Kecia , 15 May 2013

      Hi Greg. Unfortunately the subsidy is only available to households with an income of less than R15 000, and to buy houses costing less than R300 000.

  133. thabiso , 12 May 2013

    Kercia, is this housing programme in full swing, if yes where can I get to know more about it?

    • Kecia , 16 May 2013

      Hi Thabiso. Yes, the programme is in full swing – though its taken some time to get there! Take a look at the blog I’ve just written on how the subsidy works. At the bottom of the blog, there are links to the NFHC’s documents, providing information on how much you qualify for, where to apply, and what the conditions are.

  134. Wandi , 14 May 2013

    Hi there,I don’t know when was most stuff posted here but I think they have changed the policy to buy existing house,get a site and build on it.But the info you gave was very helpful.thank you

    • Kecia , 16 May 2013

      Hi Wandi – you’re absolutely right – the policy has changed. I’m very excited about the new developments because I think they’ll really improve the opportunities available for accessing and using the subsidy. Take a look at the blog I’ve just written on how the subsidy works. At the bottom of the blog, there are links to the NFHC’s documents, providing all sorts of information.

  135. Matlakala , 14 May 2013

    Hi,I would like to apply for a housing susbidy,am earning 5500 pm and my husband 7500 can we qualify?

    • Kecia , 16 May 2013

      Hi there. At a household income of about R13 000, you could apply for a FLISP of about R22 875. You’d then have to access a mortgage and use the mortgage and the subsidy together to buy a house. The good news is that you can now use the FLISP subsidy to buy a house on the resale market. These are often cheaper than new houses. Take a look at the blog I’ve just written on how the subsidy works. At the bottom of the blog, there are links to the NFHC’s documents, providing more information.

  136. Iris , 16 May 2013

    Hello
    my name is Iris i just heard about the housing subsidy, i earn R3700pm and I would love to apply for the subsidy, my question is would it be possible if me and my mother do a joined bond? because she earns R4000pm, and how do i go about applying for the subsidy. Iv always dreamt of buying my family a house could you kindly assist me on that

    Kind Regards
    Iris

    • Kecia , 16 May 2013

      Hi Iris. You can certainly apply for a bond using the joint income of you and your mother. At a household income of R7700 per month, you’d be able to apply for a FLISP subsidy of about R58 650, and then you could apply for a bond to cover the difference of the purchase price of the house. One thing to remember though – the bank will only give you a bond for the years remaining before your mother retires. So, if she’s 50 years old (for arguments’ sake) you would probably only be able to get a 15 year bond. Check with your bank and see what they say. From their side, they’ll want to make sure that your joint income will be available for the full period of the loan. Take a look at the blog I’ve just written on how the subsidy works. At the bottom of the blog, there are links to the NFHC’s documents, providing more information on how much you qualify for, where to apply, and what the conditions are.

  137. Londiwe Radebe , 16 May 2013

    Hi Kecia,

    If I earn about R9500 per month, approximately howmuch will i be qualifying for FLISP?on the blog it states that if I buy a stand I must build a house not more than R300 000,who will evaluate the house?

    • Kecia , 16 May 2013

      You’d be able to apply for about R46 500 in subsidy, and might be able to qualify for about R230 000 in mortgage finance – that is, if you don’t have any other debt. On the evaluation of the house – that’s a good question! I suspect the NHFC will work with the National Home Builders’ Registration Council to do the evaluation. If you are building the house yourself, it must be done by an NHBRC-approved builder.

  138. Thulisile Mamba , 22 May 2013

    hi, i am Thulisile single mother of two kids . i eran R8000 per month . i alredy applied for a house at cosmopolitan worth 350000. absa approves me by R300 000 so i have to pay the difference as deposit of R50 000. i really dont know what to do . can i cancelled everything and wait for flisp. Cosmopolitan they are promising to build the house this septermber 2013. I like to apply at x22 Nellmapius. Please help should i cancell or what to do . when flisp are they going to start building the houses . Cell 0822965421. Thanks

    • Kecia , 23 May 2013

      Hello Thulisile. At your income, you should certainly qualify for a FLISP subsidy – however, you cannot use this if the house you want to buy costs more than R300 000. According to the income tables, you should be able to receive about R56 000, which you would then match with mortgage finance to buy a house that costs less than R300 000. This means that your mortgage will be less than the R300 000 that ABSA says you qualify for – which means that your monthly payments will also be less. However, it does mean you’ll have to start the process over again, and it may take a while – the queue for the FLISP is long and they only approve so many subsidies per year. You should do two things now. First, find out if you can withdraw your offer to purchase – it depends on what it said and whether you’ve already signed the agreement of sale. Then, call NHFC and find out from them what the queue looks like and if you could access the subsidy soon.

  139. Shirley , 24 May 2013

    I have an existing bond with Absa of R285000 and i’m earning R9300, I’m barely making it to pay my montly bond which is R2870, do i qualify for this subsidy?

    • Kecia , 24 May 2013

      Hi Shirley. I’m afraid the subsidy is only available for those purchasing housing now – not those who have already bought their house. It does not apply retrospectively. I understand it can be difficult to pay your bond especially in the early years. All I can say is that if you hold tight now, it does get easier! If interest rates remain the same, and if your income goes up, your bond payments should become a smaller and smaller proportion of your monthly budget. The first few years of a mortgage are hard, but it does get easier. Good luck.

  140. Phiwe , 30 May 2013

    Hi Kecia is there ever going to be a chance for us people who earn R6500 in future?

    • Kecia , 31 May 2013

      Hello Phiwe. Yes, I think so. Take a look at my more recent blog on how the FLISP can now be used, in most provinces, to buy housing in the resale market: http://www.housingfinanceafrica.org/blog/flisp-housing-subsidy-extends-to-resale-market/ If you’re in one of the provinces mentioned, you can try this approach. I should warn you though: the budget allocation to the FLISP is still very small, so there will be a queue. But if you start saving now, even a little amount, you should be in a good position to qualify once you get to the front of the queue.

  141. Sonja , 03 June 2013

    Hi housing projects is a good thing. Im a single parent earning R5000 is on a housing waiting list. live in poor conditions my landlady that was renting from counsil told me i dont have any rights when i refused to pay more.we as backyarders get treated bad. I went to sohco housing to find out i dont even qualify.(steenberg). I can understand why there is such a high rate of suicides. I have a chronic medical condition and dont even have a loo. Where will this end. Im willing to rent and give my children a place they can call their home. Im really at the end of my rope.Is there still people who care out there. Im so tired of all this struggle.What else should i do?

    • Kecia , 12 June 2013

      Dear Sonja. I am so sorry for your difficulties. Our housing market isn’t working well in South Africa, and as a result, even though you earn above the threshold for qualifying for an RDP house, you struggle to find affordable housing. I’m afraid there aren’t many options. The FLISP subsidy is available to households in your income bracket, but the budget doesn’t allow for so many applications. Take a look, though, at the blog I wrote on the FLISP subsidy being applicable to houses in the resale market. http://www.housingfinanceafrica.org/blog/flisp-housing-subsidy-extends-to-resale-market/ You might be able to use the subsidy to buy a house on the resale market.

  142. Martha Masondo , 11 June 2013

    Hi Kecia
    I earn around R7000 a month and I’m currently renting two rooms in Soweto @ R1000 a month. I’m really interested in this Flisp subsidy and how one goes about applying and securing a unit for R3000.00. The is an area that is currently being developed called Lufhereng close to Tshepisong, the Gauteng Premier announced at the start of the development that it will be a mixed settlement low cost houses included.

    However I’ve following their website closely since 2009 nothing has been said in the line on low cost houses is there a list, how does one apply because from the little that we have we’d still like to pay for our house.

  143. Sbujobe , 17 June 2013

    Hi Kecia im glad theres someone who takes time on clearifing matters that fustrate and confuse us, I’m a young parent of two whose in a same situation like others, concern in finding my own space to raise my kids. But with the new implemented promising Govermant Subsidy which is becoming dogy my dreams of owning my own house a home to my kids is fading unless be involve in a circle of changing places to rent where one is riped a R1000.00 a month for a back room, will ever the Lefhureng projects be completed because I’ve been waiting since ever. when is likely for the gorvarment to review on the Subsidy policies to accomade as well as resale houses becouse those are negotiable?

    • Kecia , 19 June 2013

      Hello Sbujobe. The process does take terribly long, and I know it can be frustrating. Have you read my new blog about how the FLISP subsidy can now be used for the resale market? http://www.housingfinanceafrica.org/blog/flisp-housing-subsidy-extends-to-resale-market/ You can now use the subsidy towards a house in the resale market which is, as you say, more negotiable. You still have to link it with mortgage finance, but now you’ll be able to look for something more affordable. Good luck.

  144. Pontsho , 17 June 2013

    Hi Kecia.

    Thank you very much for your helpful blog.
    I have read it through and it shared more light than any politician canvasing for votes.

    Me and my wife we have 1 child and we earn a combined salary of R9000 a month after tax and we will be turning 28 this year.

    We want to buy a house would we be able to qualify for FLISP subsidy? and if you know how does the banks checks if you qualify for a house mortgage i.e. criterias that applies to get mortgage.

    Thank you again

    • Kecia , 19 June 2013

      Hello Pontsho. Your eligibility for a FLISP subsidy will be calculated on your before-tax salary – but if after-tax is R9000, you should still be able to qualify. You’re right, you have to also qualify for a mortgage to get the subsidy. What this means is that you have to have a good credit rating (i.e. no bad or unpaid debts, no judgements), and be able to afford the monthly repayments. They would expect you to have permanent jobs, and payslips to prove it. The house you buy also has to be approved by the bank – there has to be a title deed, and a formal transfer process, and the house has to be of fairly good quality. To understand more about the bank’s requirements, visit a branch and tell them of your plans, and ask them what they’d need from you. You can also email the NHFC for more information about the subsidy side of things: flisp@nhfc.co.za

  145. richard , 18 June 2013

    hi, we are living in a house that my grandfather build some years back, its a family house now since he past on we cannot afford the tax which have been pilling up unnoticingly( +_ R20000-00) now as such the municipality have put the house up for sale, but as he was the only breadwinner what is there that we can do as we would like to keep the house in the family, because i mean why must we now be evicted as because we cannot afford the services etc, and become a statistic? please explain?

    • Kecia , 19 June 2013

      Hello Richard. I’m sorry for your situation, but I’m afraid you have to find a way to pay the tax – even if you pay it off over time – because the municipality does have the right to sell your house to get the unpaid taxes back. The municipality must collect property tax because that’s how it pays for the work it does – refuse collection, road maintenance, and so on. But they don’t really want to make you homeless either. As far as I can tell, you have two options. Either you actively sell the house yourself and use the proceeds to pay back the municipality. Hopefully you’ll have enough left over to then buy another, possibly smaller house. Or, you work something out with the municipality to pay your debt over time. Whichever route you choose, you should get legal advice. Depending on where you live, there are NGOs that provide free legal services to people who can’t afford to pay – try the Legal Resource Centre, or the Centre for Applied Legal Studies at Wits University. But don’t just let the situation lie, or the municipality will put the house up for sale and you’ll be evicted. Rather try and solve the problem yourself so you can do what’s in your own interest.

  146. Rookmeen , 23 June 2013

    I earn around 15000 my husband around 8000 the problem is we unable to get a homeloan because husband is not a south African citizen what options do we have?

    • Kecia , 25 June 2013

      Hi there – if you are an SA citizen or resident, you should be able to get a homeloan in your name. If your husband has a formal work contract that shows that he will be earning his salary for the foreseeable future, then they may be able to include his income in your affordability assessment, while keeping the loan in your name. This means that you would be responsible for the loan. Make an appointment with your bank and discuss the situation – bring all your documents – payslips and work contracts for both you and your husband, his work permit, and also the details of the house you want to buy. You may have to buy a cheaper house than the one you think you can afford so that the bank feels comfortable about your loan repayment capacity. In the resale market, you might find some that are cheaper than the new build houses. The bank will tell you what your options are.

  147. mabotja , 24 June 2013

    i earn R10080.00 monthly take home R8000.00 with credit totalling monthly instalments of R5300.00 blacklisted,judgements etc therefore am sure won’t qualify for mortgage. i am 30yrs old,stays in my late moms’ rdp house with my 2kids and husband. i have her title deed 1998,her id,death certificate but i don’t know where to go apply for the changing of title deed into my name.please advise. i’ve applied previously like all south african for rdp house but nothing.

  148. Brandon , 27 June 2013

    Good day Kecia
    I am a 22 year old male and I earn R9000 monthlyFor the past 3 years I have been saving up some money and I have managed to save up R60 000. I would like to know if I am eligible for the FLISP subsidy. I am interested in buying my first property in 2014 and I have identified that plots are the best option for me at the moment. If I want to buy a R160 000 plot and have a personal equity deposit of R60 000, will the government give me a FLISP subsidy?? If so, how much would it be. Buying a plot and having FLISP subsidy and a mortgage loan would personally help me buy a plot and build a house to suit my needs and match my pocket as I am single with no kids. In the 2013 budget speech the finance minister mentioned how imperative it is to save money, I am saving up but to what end? Do I have to literally save up to buy a plot cash and then make a mortgage loan to build a house?
    Kind regards: College graduate.

  149. ashley , 01 July 2013

    Hi keshia I would like to know, I’m a 27year old male and earn R8000 a month don’t have any debt. What amount bond or mortgage. Would I qaulify for my only expenses are traveling and some other things that amount to R1000. Because I wanna get myself a house

    • Kecia , 02 July 2013

      Ashley, in terms of income you should be able to qualify – but another one of the criteria is that you have to have dependents – that is, a spouse or partner, children, parents or siblings. Best would be to contact the NHFC which administers the scheme – their email is flisp@nhfc.co.za or you can call them on 011-644-9800

  150. ken , 03 July 2013

    Hi Kecia i would like to know whether i do qualify for FLISP, if i’m under administration and the property that i want to purchase is less than 80 000. i’m earning R12 300 before deductions and for debt administration i pay 2 500. thanks please advice

    • Kecia , 05 July 2013

      Ken, in terms of your income, it is likely that you would qualify for the FLISP – HOWEVER the FLISP cannot be accessed without also accessing mortgage finance, and that’s where you’ll find you have a problem. You need to resolve your credit situation before you can qualify for a mortgage. Unfortunately, you can’t use the FLISP without mortgage finance.

  151. Thabo Molemohi , 07 July 2013

    I earn R 11868. Then I have housing (R 632), Transport allowance (3041) variable shift allowance and overtime.I have applied (and got approval from them) for mortgage on a house that is R270000. The bank has been waiting for a few papers from the developer to pay and we start paying the bond. Can we ask the bank to make this application for us and is it still within the time? Please also respond to my e-mail address. Thank you!

    • Kecia , 08 July 2013

      Hello Thabo. Given your various income sources, it looks to me like you’re right on the border line of eligibility for the FLISP. In order to qualify for the FLISP you have to earn a household income of less than R15 000 per month, all in. If your income, as specified in your mortgage application details, is less than R15 000 per month, then you can apply for the FLISP – but even if you do qualify it will be a small amount – something like about R10 000. Ask your bank to make the enquiry. You can also call the NHFC directly. Their number is 011-644-9800 or 0860-011-011.

  152. Linda , 09 July 2013

    Pls advise i work @ fnb currently earn R6100 after deductions and i need a subsidiesed house?

    • Kecia , 15 July 2013

      Hello Linda – at your income, if you have dependents, you should qualify for a Finance Linked Individual Subsidy Programme (FLISP). Start this way: go to your bank and ask them to tell you how much of a mortgage you’d qualify for in principle. If you have no other debt, I’d guess that would be about R140 000. The FLISP you could qualify for should be about R70 000. If you add the two amounts together, you get about R210 000 – that’s the purchase price that you should be able to afford if you qualify for everything. Of course, you won’t find a new house for that amount, but you should be able to find something on the resale market. Once you’ve found the house, and got bank approval in principle for the loan, you can then contact the NHFC to apply for the FLISP. They’ll then help you put all the pieces together.

  153. Nicolene , 12 July 2013

    Hi Kecia

    I am a mother of 2, I earn R6 500.00 per month, I am seperated with my husband for 2 years, but not divorced he earns arround R 9000.00.
    Will this have an effect on my application?

    • Kecia , 15 July 2013

      Hello Nicolene. I’m not sure about the legal implications here – I think it depends on the contract by which you are married. I think you should contact the NHFC directly and ask them about this – their email is flisp@nhfc.co.za and their number is 0860 011 011.

  154. fenny , 14 July 2013

    hi i want to apply for a house my income is R7000 and i am working under an agency for 8years now will i quilify ?i want my own space.And how does on apply for house subsidy

    • Kecia , 15 July 2013

      Fenny, you can apply for the subsidy if you’re married, living with someone, or if you have dependents (people you look after and who live with you, like children, siblings, grandparents, etc.). If you want to apply for a new house, you have to put yourself on the NHFC waiting list. Their number is 0860 011 011 or email flisp@nhfc.co.za At your income though, its unlikely you’d afford a new house, so you’d have to find one on the resale market – something costing no more than R230 000. Once you’ve found the house, you need to go to the bank and find out how much mortgage finance you’d qualify for. After they give you your in-principle approval, you go to the NHFC to apply for the subsidy, and then they help you put all the pieces of the deal together.

  155. khethiwe , 15 July 2013

    Will I get a subsidy if I’ve been to debt consolidation?

    • Kecia , 15 July 2013

      Hi there. Its a good question because in order to access the subsidy you have to ALSO access a mortgage loan for the difference in the purchase price of the house. You will only get a mortgage loan if your debt consolidation is resolved, and if your credit record is cleared. Even then, however, it is likely that the bank will want you to prove financial discipline with a clear and steady savings record. Set up a savings account with your bank now and save a regular amount, no matter how small, every month. Then approach the bank and discuss with them what size of mortgage they might approve in your case.

  156. RONNIE MABASA , 15 July 2013

    hi im earning R9900 and R1700 with the other company im paying R3000 instalment for the vehicle. where do i fit in to the house as i dont qualify for the RDP. Where ever i apply for the house they need a salary rating above R11000. PLEASE HELP.

    • Kecia , 17 July 2013

      Hi Ronnie. You’re right: you don’t qualify for an RDP house, but you might qualify for the Finance Linked Individual Subsidy Programme (FLISP). This is targeted at households earning between R3500 – R15 000 per month. In order to access it, you have to also qualify for a mortgage, and use this together with the subsidy to buy a house that costs less than R300 000. Your R3000 vehicle finance instalment does reduce your mortgage eligiblity however, so you might have to consider buying a much cheaper house on the resale market. See my blog on the subject: http://www.housingfinanceafrica.org/blog/flisp-housing-subsidy-extends-to-resale-market/ The banks shouldn’t impose a salary limit on your mortgage eligibility – rather they are imposing an affordability limit given the cost of house you’re looking for. If you find a cheaper house on the resale market, and if you have a good credit rating with your vehicle finance and other credit, you might be able to access a mortgage. You can also contact the NHFC for more information on how to access the FLISP: 0860 011 011 or flisp@nhfc.co.za

  157. Olwethu , 17 July 2013

    Hi there,
    I’ve applied to buy a house through an agent it has been given the go-ahead by Standard Bank at a loan of R250000.
    I earn about R13000 Gross and would like to know how can I apply and what are the steps to follow. The house I want has been made available to me and we are currently working through the papers.
    Please advise.

    Regards
    Olwethu

    • Kecia , 23 July 2013

      Hello Olwethu. With your income, and given that you’ve been approved already for the loan, you should contact the NHFC to see if you meet all the other qualifying criteria to access the FLISP subsidy. It does apply to houses bought in the resale market, if the total purchase price is less than R300 000. Call the NHFC on 011-644-9800 or 0860 011 011, or email them on flisp@nhfc.co.za. Also raise this matter with the bank – they should be able to help you connect with the NHFC. Good luck!

  158. Tumi , 17 July 2013

    Hi I earn a gross salary of R6123.75, I have a clear credit record and I’m in need of a house which steps do I take cause i’v been rejected a number of times agencies saying I will never qualify, where do I go kindly assist.

    • Kecia , 23 July 2013

      Hi Tumi – if you have dependents, have never owned a house before, and qualify for a mortgage, then you should be able to also qualify for the FLISP subsidy. At your income, depending on your expenses, you should possibly qualify for a mortgage of about R145 000. Add to this the FLISP subsidy that you’d qualify for (possibly R70 800) and you might be able to afford to buy a house on the resale market for about R215 800. Start this way: find a house for sale in your area for that price or preferably cheaper (remember there will also be moving costs and other fees, so its better to find a house for cheaper than you can afford). Once you find it, put in an offer to purchase, conditional on your getting a mortgage and a subsidy. Take this offer then to your bank and inform them that you also want to apply for a suabsidy. They’ll tell you how much mortgage you qualify for (if any at all – it depends on their criteria). Once they give you this information, take it to the NHFC (call them on 0860 011 011 or 011 644 9800), together with the offer to purchase, and apply for the subsidy. You can also email them on flisp@nhfc.co.za. Its a complicated process – good luck!

  159. martin , 19 July 2013

    can i apply for a low cost house if i earn R15,000.00 after deduction it is R11,876.00 i have one depandent that is living with us.Wife not working and where can i apply

    • Kecia , 23 July 2013

      Hi Martin. I’m afraid the cut-off for the FLISP subsidy is R15 000 total household income. If this is your income, you could access a subsidy of R10 050, but this depends on you also accessing enough mortgage finance to buy a house that costs less than R300 000. You can call the NHFC for more information. Their number is 0860 011 011 or 011 644 9800; or email them on flisp@nhfc.co.za

  160. Randall , 20 July 2013

    I have 2 questions . I earned R3710 a month for how much do i qualify. Im also under bad credit but if i found a house under R150000 will i qaulify

    • Kecia , 23 July 2013

      Hi Randall. I’m afraid even if you had a good credit record, you’d struggle at your income to buy a house for R150 000. It all depends on what your expenses are. If you could afford to spend R875/month on a bond, and if your income were secure for 20 years, its possible that the bank might give you a loan for maybe R74 000, depending on the interest rate they give you. At your income, you’d qualify for a R87 000 FLISP subsidy. So in that case, you could presumably afford the R150 000 house. Banks are quite hesitant to offer mortgages of that size however – its too small for the what it costs the bank to actually issue the loan. Given this, they’d be quite strict on your credit record. A bank will not enter into a 20 year relationship with you if your credit is bad. You have to resolve this first before you can make a deal like this work.

  161. thuli , 21 July 2013

    Hi Kecia! Help me please I really need a house but I’m a commission earner who don’t have a basic salary but I get a salary from R4,000 to R10,000 sometimes its above it depends. Do I qualify for subsidy?

    • Kecia , 23 July 2013

      Hi Thuli. You need to demonstrate to your bank that even though you are a commission earner, there is a regular minimum amount that you earn each month. There are a couple ways to do this. First, you should deposit your commissions in a bank account so that they become visible to the loan officer. You may also want to start a savings account and put a regular amount of money away each month to demonstrate financial discipline. Second, talk to your bank about their requirements – take your contract to them and show them evidence of past earnings. At your income range, you should qualify for a subsidy, however I’m not sure how NHFC will calculate your income. You’ll need to contact them directly to find out.

  162. Randall , 22 July 2013

    where can / must go to find out more about it. Randall from Eastern cape

    • Kecia , 23 July 2013

      Randall, in the Eastern Cape you can find the NHFC’s offices at Steve Tshwete Building in Chiselhurst, 31 Phillip Frame Rd. Their number is 043 711 9777/8

  163. JANE , 23 July 2013

    Hi! i just want to know about this low cost housing because i had people talking about it but they dont give us an information, where can i get the application form and the address where i can submit it im at gauteng kempton park, is there any side next to where i live? please help im looking for a house many for many years.

    • Kecia , 26 July 2013

      Hi Jane. If you earn less than R15 000 and have dependents, you can apply for the Finance Linked Individual Subsidy Programme. To get the subsidy, you also have to qualify for and access mortgage finance, and use both the mortgage and the subsidy to buy a house that costs less than R300 000. To find out more, take a look at the pamphlet that we’ve got on our website, or call or write to the National Housing Finance Corporation (which is administering the scheme) directly: 011 644 9800 / 0860 011 011

  164. Ntombi , 24 July 2013

    Hi Kecia

    So if I don’t have any kids means I won’t qualify for the subsidy?

    • Kecia , 26 July 2013

      You have to have dependents, Ntombi. They don’t have to be your kids though. They could be a spouse, partner, parents, siblings – anyone you take care of who depends on you for support.

  165. obakeng , 25 July 2013

    Can you please send me the contact details that I can use…….thank you

  166. Aphiwe , 26 July 2013

    hi Kecia, I’m 25 years living with my 1 years old daughter and parents. but now I need to find leave home and stand on my own. I earn R 3800 and with all my expenses I can only afford to pay R 1500 every month. reading the blog I realise that I may qualify for a subsidy but my question is what are the requirements for the land application and if I am approved for the land is there an option to use the subsidy to build the house.

    • Kecia , 26 July 2013

      Hi Aphiwe. At R3800 per month, you should qualify for a mortgage loan of about R84 000, and a subsidy of about R87 000. This means that you could possibly afford a house costing about R170 000. Take a look at the FLISP brochure and follow steps. https://dl.dropboxusercontent.com/u/25010335/NHFC/FLISP%20Information%20Pamphlet.pdf There is certainly an option to get land for free and build a house on top – that part you’d have to pay for, however. Call the office in your area and ask them to help you work through your options. Good luck.

  167. Mxo , 30 July 2013

    Hi Kecia.I am earning R9600pm + R900 housing allowance from government,I have other different loans paying up to R3400 pm.At the moment I want to consolidate my loans so that I will pay 1 affordable loan.Do I qualify for this subsidy or do you think banks will consider me? I am from Eastern Cape

    • Kecia , 03 August 2013

      Hi Mxo – at your income, and if you’ve never owned a house before, and if you have dependents, you should be able to apply for the FLISP subsidy – and perhaps you could use this process to also consolidate your loans. However, the bank will only allow you to consolidate your loans into a house if the value of the house is much greater than the loan amount, and if you can afford the repayments. You need to find a financial advisor to help you through this process. Can you go to your bank and discuss the possibility with them?

  168. prudence , 31 July 2013

    hi kecia am earning 5000pm and my fiance who is soon to be my husband is earning 6400pm,can we combine our salary while applying for this flisp since we not married yet.and can we qualify for it

    • Kecia , 03 August 2013

      Hi Prudence – Yes, you should be able to combine your salaries together if you are engaged and you can demonstrate this to the bank. The key issue is that the bank has to accept the two of you as joint applicants for the mortgage – and for this they may require some sort of contract as proof. Go to the bank and discuss this with them. They’ll let you know what their requirements are.

  169. yvonne , 06 August 2013

    I will like to know if its possible to get subsidy if one needs to build a house in the traditionally owned land( tribial authority). If not how do you assist the people who needs assistance to build a house at traditionally/ tribal authority owned land.

    • Kecia , 08 August 2013

      Hi Yvonne. There is a specific subsidy for rural areas. The best place to get information about this is the Rural Housing Loan Fund. You can visit their website on http://www.rhlf.co.za or call them on + 27 (0) 11 621 2500

  170. nomayira , 10 August 2013

    I stay in queenstown ,I need a house we’ve been waiting for flisp project I know I qualify.please help

    • Kecia , 20 August 2013

      Hi there. The NHFC has prepared a detailed pamphlet setting out how the policy works – you can download it by clicking on the hyperlink. There is also a presentation, which provides a little more detail. Lastly, the application form for the FLISP is also available on the NHFC website. In the Eastern Cape, you can contact the office in East London on 043-711-9777 or 8

  171. Antoinette Oosthuizen , 11 August 2013

    Hi Kecia. I am a single mother with 2 dependants. Can i also apply for this FLISP subsidy? Can you pls email me some more info.

    Im from Eastern Cape.

    Thanks

    Antoinette

    • Kecia , 20 August 2013

      Hi Antoinette. If you earn less than R15 000 per month (gross) and have never owned a house before, then you may qualify. Take a look at the pamphlet that the NHFC has prepared (click on the hyperlink), and then call their office in East London: 043-711-9111 or 8 to find out more.

  172. Jacob , 13 August 2013

    Hi Kecia, our monthly income is R5500. For how much do we qualify for a house? Thanks in advance.

    • Kecia , 20 August 2013

      Hi Jacob. In terms of the subsidy tables, at your income, you could qualify for a FLISP subsidy of about R73 500. However, to access this, you need to also qualify for mortgage finance, and then use both together to buy a house that costs less than R300 000. Depending on where you live, you can buy either a new house, in a project that has been approved by the NHFC, or an existing house. In your income range, an alternative is to forgo the FLISP and rather apply for a serviced stand that the government would give you for free (this is also only in certain areas – you need to find out if your municipality is doing this), and then you build a house on top of that, at your own cost.

  173. wayne lundall , 14 August 2013

    Hi we have recently purchased a flat for 32000.. can we apply for this subsidy.
    My wife is working and earns 8000

    What can we do as i am unemployed and things .ar tight

    • Kecia , 20 August 2013

      Hi Wayne. I’m afraid the subsidy only applies towards the purchase of accommodation (a flat or a house), not in retrospect for something you’ve already bought. If you’ve already bought the flat – that is, if the transfer has already gone through – then you can’t apply retrospectively for the subsidy. In any event, the subsidy can only be accessed if the property you buy costs less than R300 000 – the flat that you’ve bought wouldn’t have qualified anyway. I’m sorry things are tight – congratulations, however, for finding a property that you could afford. I wish for you many good times in your home.

  174. LERATO , 16 August 2013

    hy iam lerato,my husband is earning R6500 can we get a subsidy, and iam not working

    • Kecia , 20 August 2013

      Hi Lerato. At your income, and if you’ve never owned a house before, then yes, you should be able to get a subsidy. However, to access the subsidy you need to also qualify for mortgage finance for the difference in the purchase price, to buy a house that costs less than R300 000. Your income of R6500 should allow you to qualify for about R66 750. Then, you’d have to qualify for a mortgage to pay for the rest of the purchase price. Take a look at the pamphlet that the NHFC has developed – this might give you more answers and then you can call them on the numbers that are listed.

  175. noma , 18 August 2013

    im a gvnmt employee earning 12055 before deductions and do.t have a good credit report but renting a room at 2700pm. why they cant check affordability as bed credit record does not necessarily mean I cant afford monthly instalments I really need a shelter that I will call home… president gedleyihlekisa need to make a plan together with tokyo sexwale. I personally feel its igh time I receive something from my government.

  176. Sfiso , 20 August 2013

    Hi Kecia

    I am writing a paper on sale of RDP houses. I seem to get a lot of sources stating that you are only able to sell an RDP house that is older than 8 years. But I cannot find concrete authority to cite in this regard. Could you please refer me to an Act or any other regulation that states as such?

    • Kecia , 22 August 2013

      Hi Sfiso – the pre-emptive clause, as it is called, is found in the Housing Amendment  Act,  Act  4  of  2001,  and  became  applicable  on  01  February  2002.    
      Section  10A  of  the  Act,  inserted  by  section  7  of  Act  4  of  2001,  relates  to  restrictions  on  the  voluntary  sale  of  subsidised  housing.   Essentially it says that subsidy beneficiaries may not “sell or otherwise alienate” their subsidised dwelling or site within a preiod of eight years from the date on which the property was acquired. Take a look at the timeline analysis we did as part of the RDP Assets study. When Breaking New Ground was approved by Cabinet in September 2004, the eight years was revised to five, but that was never effected in legislation so the eight years remain.

  177. Romitha , 21 August 2013

    Hi, we applied for our subsidy in June 2013. Around how long will it take for us to get the subsidy? We were tld 2 months is this true?

    • Kecia , 22 August 2013

      Hi Romitha – in principle, the NHFC should stick to the timelines they’ve promised to you – it all depends on if you are seeking to buy a new house with the subsidy or a house on the resale market, and if all the other steps have been completed. I would recommend you call the NHFC and check on your application: 011-644-9800

  178. Siba , 23 August 2013

    Hello Kecia, this NHFC/ FLISP sound soo good. I am earning R12K Gross, and I am really interested. I will go to the bank sometime to check my financial state. Can you please check for me how much do I qualify for? Also in CPT, do you know perhaps where are this new developments? Also, if I qualify and decided to move out of CPT in the next 4-5 Yrs, can I still sell the house and buy the new one in that Province?

    Thanking you in advance

    • Kecia , 24 August 2013

      Hi Siba – yes, the FLISP subsidy can be really helpful. When you consider your options, remember that you can use it either to buy a new house that costs less than R300 000, or to buy an existing house on the resale market. If you want to buy a new house, you’ll have to wait for projects to become available. You can call the NHFC’s office in Cape Town to see if there are any ready. However, if you decide to buy an existing house on the resale market, you may find that its a little bit cheaper, and you don’t have to wait for a development. The same rules apply: the house you buy has to cost less than R300 000, and you have to earn less than R15 000. Check out the NHFC’s pamphlet which describes everything – it will tell you how much you qualify for, and what the Cape Town telephone number is. Lastly, yes, there is no resale restriction – if you decide to sell your house, you can. However, you can’t then access another subsidy. You will just have to use the proceeds from the sale of your first house to support your purchase of the new one in another province or area.

  179. Romitha , 23 August 2013

    Hi Kecia, I did like u said I shd and My husband phoned the NHFC and was told that our application has failed due that we own another property that we inherited from my mum in law and only 50% of it, which we dnt live in and didn’t gain a cent from. Now that we purchased our own home it shows we own 2 house’s. We were tld we cannot reapply..how do we rectify this? I’m just so disappointed. Pls advise if the money is accessable wen it goes into our bond account? Awaiting ur response as to the steps we can take to sort out this matter.

    • Kecia , 24 August 2013

      Hi Romitha, I’m so sorry to hear this. Unfortunately the subsidy is only available to households who have never owned a property before – if you have a property that is in your name on the deeds registry, even if you only inherited 50% of it, you don’t qualify for government housing subsidy support. The government has drawn the line in this way because it has so many people it needs to help, it has to help those who have nothing, first. So you aren’t eligible for the subsidy. Have you thought about selling your mother’s house and using the proceeds from that sale to help you pay for the loan on your new house? Or, could you rent out your mum’s house and use the rental income to supplement your monthly payments on the house that you’re living in? Those are the only things I think you can do. In terms of the policy, you won’t be able to get a subsidy.

  180. Tau , 26 August 2013

    Hi
    After submitting all relevant documents with bank approval,how long will the subsidy process be

    • Kecia , 01 September 2013

      Hi Tau – the NHFC should have confirmed this with you but they have pretty tight turn-around times that they promise. It depends also on if you are buying a new house or an existing house – the purchase of a new house may take more time as you wait for the house to be ready. Call the NHFC back and ask them to tell you how long the entire process will take.

  181. Romitha , 28 August 2013

    Thks Keshia, really appreciate ur advice. I have been convincing my hubby to sell our portion. My sister in law is currently living in the property..she inherited the other 50%. The thing is wat if she refuses to purchase our share and say she does not have any money to pay us?in this matter does she have to come into agreement to sell the property to an outsider in order for us to split the shares. I am taking the legal route in this matter to avoid any problems which I foresee there will be. If she does refuse and come up wid all sorts of excuse then can my attorney forcefully sell? Really need ur advice on this matter and thank u very much.

    • Kecia , 01 September 2013

      Hi Romitha – you’re starting to get past my expertise now. I think you should talk to a lawyer. It all depends on what the legal documents say. Certainly, if you legally own 50% of the property, she should be paying you rent for that part in the meantime. I would recommend you go to a law clinic and ask for advice. Probono is an NGO that provides legal clinics and they have one in Johannesburg that specialises in housing matters: http://www.probono.org.za Its open on Fridays from 9-1. If you’re in another city, maybe you can call them. Their contact details are on their website.

  182. Romitha , 28 August 2013

    Thks Kesia, really appreciate ur advice. I have been convincing my hubby to sell our portion. My sister in law is currently living in the property..she inherited the other 50%. The thing is wat if she refuses to purchase our share and say she does not have any money to pay us?in this matter does she have to come into agreement to sell the property to an outsider in order for us to split the shares. I am taking the legal route in this matter to avoid any problems which I foresee there will be. If she does refuse and come up wid all sorts of excuse then can my attorney forcefully sell? Really need ur advice on this matter and thank u very much.

  183. Tshepo , 29 August 2013

    Hi Kecia, In 2008 I applied for a RDP house and It was approved, development of the RDP house has not started. but now I’m working and want to make use of the flisp subsidy and the projects are faster than the RDP. Will I qualify?

    • Kecia , 01 September 2013

      Oh my, that’s a long time to wait! I can understand your frustration. The answer depends on your income and your affordability. If the RDP house is ever built, it will be quite a valuable structure – depending on where it is located, of course – but an RDP house is given to qualifying beneficiaries (households who earn less than R3500 per month and who have never owned a property before) for FREE. The FLISP subsidy is quite a big sum of money (from R10,000 – R87,000 depending on how much you earn – the more you earn, the less you get) but you can only get the FLISP if you also get mortgage finance at the same time, to buy a house that costs less than R300 000. To qualify, you have to earn between R3501-R15,000 per month. So, the real difference is that with the FLISP you’ll have to also incur debt and will have to pay this off over 20 years; and with the RDP house you get it for free (but there’s a pretty long wait). If your income has improved since you applied for the RDP, you might be able to go the FLISP route, but remember that you do need to get a mortgage loan to go with it in order to qualify. Take a look at the NHFC’s pamphlet, and then give them a call to find out more.

  184. Molly , 29 August 2013

    Hi Kecia I earn 4500 I will to know how much subsidy will I qualify for ,I really want to buy a house .

    • Kecia , 01 September 2013

      Hi Molly. At your income, you get almost as much of the subsidy as is available – about R80 000. However, in order to access the subsidy, you have to qualify for mortgage finance also, and at your income you’ll qualify only for about R108 000 – that is, if you have a good credit record and no outstanding debt. These two amounts together would give you about R188 000 – which means you wouldn’t be able to buy a new house. A while back I wrote a blog on how the FLISP subsidy has been extended to the resale market. Take a look at that – perhaps it will work for you.

  185. Romain , 29 August 2013

    My Current Gross Salary is R6480. I am single working mum renting a 1 BEDROOM, sharing bathroom,kitchen (R1800),with a friend,My son whose Asthmatic. I applied for a Low Cost House when I was unemployed in 2006,my son was 5mnths then, recently found out that the forms we signed was all scrapped and thrown away. How is that possible and why will the goverment do that? I’m willing to rent a goverment house until I can afford to pay it and make it my own. My son is 8years and needs a room of his own, As we sleep in one room. How does one apply to rent?. I live in Phoenix.

  186. Lynette , 05 September 2013

    I see a lot of people complaining with the white bread under the arm. I am receiving a government grant for my 3 boys and my husband lost his Standing place for his tuck shop cause the company expanded the building. Yes its true people like to stay between their own people. but dont look down at others as if you are more important. people are sleeping outside, for God sakes – and some of you are complaining about fixing up your homes. Please if you are white I beg you – DO NOT ACT STUPID ON THE INTERNET, YOU EMBARRASE ME. When i was 25 I was a single mom supporting my mom and son on a salary on R2900 and 2years later R3500. Thank God for the jobs you have. Why are some of you asking for something ? You got a job, a house, food and clothing cut on the luxury then you’ll have money for the more important exstras.

  187. Charlotte , 05 September 2013

    Hi Kecia, I stay in Alexandra and I would to know when the flats are going to be allocated and when are we going to apply for the Mortgage?

    • Kecia , 15 September 2013

      Hi Charlotte – I’m sorry I don’t know when the flats in Alex are going to be allocated. Perhaps you should call the NHFC and ask them? 011-644-9800.

  188. Louisa , 06 September 2013

    Hi kesia

    Me and my husband bought a stand in 2003 and this year 2013 we started building a house,we took few loans and the house is not finished while we no longer qualify for any loan,so can we qualify for this FLISP?

    • Kecia , 15 September 2013

      Louisa, I’m afraid that the FLISP doesn’t apply in retrospect – you can only access it if you have never owned a property before. I know this doesn’t make sense, but you’re not eligible for the FLISP given your situation: owning a stand equals owning property. It will take you time to build your house, but over time, you’ll succeed. Good luck.

  189. Ernest Mandla Hlope , 12 September 2013

    i want to buy a serviced vacant stand, straight from de owner on an instalment basis. Stand costs R180 000, down payment R20 000

    • Kecia , 15 September 2013

      Ernest, that’s fine, as long as you’re sure that the owner has the title deed and you follow the formal, legal process to ensure that the property is legally transferred into your name. Have you checked to make sure that the price is good and fair? Unfortunately, the only way the FLISP can be used, however, is if you access mortgage finance – the FLISP doesn’t count in an instalment sale arrangement.

  190. Tau , 12 September 2013

    I have applied for mortgage bond and banks said I qualify to get R 290000 and the house I got is exactly R 300000,what do one do on this situation

    Thanks

    • Kecia , 15 September 2013

      Tau, you have to call the NHFC and apply for the FLISP – their number is 0860 011 011. Make sure you contact them before the transfer goes through, so that you’re sure that the subsidy is part of the transaction process.

      • Tau , 17 September 2013

        Thanks Kecia,during my application for banks loans I also put up application with FLISP and so far I have not heard anything from them whereas banks approved on their side and now I cannot proceed due to FLISP pace

  191. Sam , 13 September 2013

    HI there

    my husband and i are professionals and earn jointly 30 000 nett income. we are in the market of wanting to purchase prperty for the first time, as we both just got employed recently. we look after our parents and younger siblings and have children. we also have debt such as study loans and others, and paying off cars etc. we have alot of expense so although it seems like we have alot of disposable income, we dont. is there any hope in getting a first-time home owner’s housing subsidy?? after everything is paid we arent left with much at the end of the month. do they consider the person’s expenses when deciding who qualifies?

    • Kecia , 15 September 2013

      Hi Sam. I’m afraid the subsidy is only available to households who earn less than R15 000 per month. I understand the financial stresses that you and your husband are under, but by limiting eligibility to those who earn less than R15 000 per month, government is already serving about 87% of the population. There simply isn’t enough funding in the fiscus to extend the subsidy any wider. You’re going to have to phase your investments and make some choices about when to buy what, and how to save towards your housing needs in the meantime.

  192. samuklisiwe Mthembu , 18 September 2013

    hi my name is samukelisiwe mthembu i’m current earning R2200 per month how will able to get RDP HOUSE from durban (Adams Mission) how will i be funded

    • Kecia , 20 September 2013

      Hi there – I think you need to call your municipality regarding the RDP subsidy. This is still being administered at the local level.

      • siyabonga , 23 September 2013

        Hi my name siyabonga I earn less then R8000 and I am Temporaly imployed and I have been now is 3years 9months all this years I alway sign 3months contract or 4months or 6months plz help DO I qualify for RDP

        • Kecia , 15 October 2013

          Siyabonga, to qualify for an RDP house you have to earn less than R3500 per month. If you’re earning between R3500 – R15 000 household income per month, you can apply for the Finance-Linked Individual Subsidy Programme. However, in order to access this subsidy, you have to qualify for a mortgage bond, and this is a problem if you are temporarily employed. Another aspect to the FLISP subsidy is that households who cannot access a mortgage but who otherwise would qualify can apply to rather get a serviced stand from the Municipality, for free. You’d then be required to find other finance (microfinance, or savings) to build your home incrementally, over time. You need to approach your municipality to discuss the issues with them, or contact the NHFC that administers the FLISP: 011-644-9800.

  193. martha , 22 September 2013

    Hi, I have been waiting for my RDP house since 2003 and everytime whn I go to municipality they tell me they will sms and its being long now. I don’t know where to go and lay a formal complain. Please help me I really need a house I m not working and I have 3 kids and sstill staying in a family house .I have all the documents with me Martha from Pretoria

    • Kecia , 15 October 2013

      Hi Martha – I can hear how frustrated you are. You have been waiting for a long time. I don’t have any special contacts at Tshwane Municipality, but their website provides contact details. The Manager of the Waiting List and Subsidy Administration Unit is Mr Bradley Rathumbu (tel 012-358-1167) and the Deputy Manager is Mr Peggy Rathete (tel 012-358-1124). They also have satellite offices in different neighbourhoods that should be able to help you. Take a look at the website here: http://www.tshwane.gov.za/Services/Housing%20and%20Human%20Settlement/Pages/Housing-Waiting-List-and-Subsidies-(English).aspx If this doesn’t work, let me know and I’ll see what I can do. Good luck.

  194. zandi , 25 September 2013

    hi, im a single mother of two, earining R4000… i applied for an RDP and im still in waiting, i would like to know if i have a c-form will i still be able to apple for government subsidy?

    • Kecia , 15 October 2013

      Zandi, hi. With an income of R4000 per month, you earn too much to qualify for an RDP. Rather, you should qualify for a FLISP. The FLISP works by giving you money for a sizeable deposit on a house that you then finance with a mortgage. At R4000/month, however, its unlikely that you’ll qualify for a mortgage, which means you will either not be able to get the FLISP or you can apply to get a serviced stand from the Municipality, for free. You’d then be required to find other finance (microfinance, or savings) to build your home incrementally, over time. You need to approach your municipality to discuss the issues with them, or contact the NHFC that administers the FLISP: 011-644-9800.

  195. John , 27 September 2013

    Hi I am John who earns R 10200 a month. I have acquired a vacant stand and have since started the building process. My house plan has been approved, but I need money to complete the house could I qualify for the subsidy and do need to do?

    Thanks

    • Kecia , 15 October 2013

      Hi John. I’m afraid that the FLISP subsidy is only available to someone who has never owned a property before. Because you already own the stand (am I right in assuming its registered in your name?) I don’t think you’d qualify for the FLISP subsidy. Also, the only way to access the FLISP is if you get it together with a mortgage loan at the same time. I’m sorry.

  196. karabo , 07 October 2013

    hi i would like to enquire if i do qualify for a subsidy, i have paid up my retail accounts, im left with a loan and credit card, the total i pay for both combined is +-2000 a month. i earn 6800, so what are my chances of getting a subsidy , and how do i apply

    • Kecia , 15 October 2013

      Hi there. Based on what you’ve said, it looks like you might qualify. Basically, you need to earn a household income of between R3500 – R15 000 per month, and also qualify for mortgage finance for the difference needed between the subsidy you’d get and the purchase price of the house. The house has to cost less than R300 000, and you can never have owned a house before. Call the NHFC to discuss this further with them: 011-644-9800. Also take a look at the FLISP pamphlet that the NHFC has prepared.

  197. Nisa , 08 October 2013

    Hi
    I’ve just wanted to know, if I am able to get a mortage I am interested in buying.a house in the resale market less than R300000. How long does it take for the subsidy to pay out? I know the seller and the reason she is selling her house is because she needs the money, and will not sell to me if the subsidy takes too long to pay out.

    • Kecia , 15 October 2013

      Hi Nisa. You’re going to have to take this to the NHFC and ask them to confirm everything. They have certain timeframes to which they are committed to stick, but perhaps it is better to speak with them about your situation. You first have to qualify. Take a look at their pamphlet that they’ve developed and give them a call.

  198. Phumzile , 22 October 2013

    Hi Kecia

    I earn R4 000 pm, I am 21 years old, I would like to know if I do the house search on my own or the options are provided by the programme. how long does the subsidy take to payout and roughly how much can I pay monthly?

    • Kecia , 05 November 2013

      Hi Phumzile – the answers to your questions all depend on the choices that you make. At your income, you would possibly qualify for a subsidy of about R83 000, or, you might be able to apply for a serviced stand instead of the subsidy, and then you’d have to build your house yourself on that land. If you wanted to buy a house, you’d have to also get a mortgage loan – and at your income its possible you could qualify for about R90 000 or so (this would mean that you’d have to pay R1000 per month for 20 years to repay that loan), which would mean that you could afford to buy a house of about R170 000. However, banks are not so keen to offer such small mortgages. You should go to your bank and ask them about the size of mortgage that you’d qualify for. Once you know that, you’ll know the other choices that you’ll have to make. The payout period is supposed to be short – but the money isn’t paid to you. Rather, its paid directly to whomever is facilitating the transaction. Good luck.

  199. Nozuko , 28 October 2013

    Hi, firstly i need to know the brief defifnition of subsidy. Secondly, is it a once off assistance??
    I earn R1001.00 per month and applied and was approved. The houses are being built and I am told the project will be done next year March. I did not apply for a subsidy but when I phoned the Calgro offices, i was told they applied for me and i qualify. Obvously, I asked how much it was and no once could give me an answer. May you please tell me around how much i qualify for as i feel i would like transparency with the process of getting my home.
    Thank you.

    • Kecia , 05 November 2013

      A subsidy is once-off assistance – a capital grant that is applied to the cost of housing. At your income (you said R1000 per month), you should qualify for a BNG house (BNG stands for Breaking New Ground, which is the new housing policy that was agreed by Cabinet in 2004), if you have never received a housing subsidy before, have people who depend upon you financially, and have never owned a property before. That house is entirely free – the only obligation you would have would be to pay for the services (water, electricity) that you consume, over and above your free basic granted services, and rates (also called property tax) which the municipality may charge one day – at the moment, BNG subsidy beneficiaries are exempted from paying rates. The BNG house costs the government about R150 000 or so to build – this includes about R87 000 for the top structure, and the remaining is for land and services. Does this help?

      • Nozuko , 06 November 2013

        Hi Keica, it is R10001.00 not R1001.00. I made a typo

        • Kecia , 08 November 2013

          Hi there. At R10 000 per month, should qualify for a once-off subsidy of about R43 125. This amount will be used to reduce the loan amount that you have to apply for. So, take the purchase price of the house you’re going to buy, subtract R43 125, and that will give you the amount that you need to borrow in the form of a mortgage bond. Take a look at the NHFC’s pamphlet that they developed, which explains everything: https://dl.dropboxusercontent.com/u/25010335/NHFC/FLISP%20Information%20Pamphlet.pdf

  200. GAOPALELWE , 31 October 2013

    I found a project/people at protea glen they give out application forms for low cost house that are to be built at vaal, braamfisher, protea glen and some other areas. the project includes government subsidy, siza bonke n & f developments, absa bank so they say…. is this all true? i would like to make sure.

    • Kecia , 05 November 2013

      Hi there. I’m not sure about the specific project that you’re describing, but it sounds feasible. You can call the National Housing Finance Corporation to check for sure – they administer the subsidy. Their number is 011-644-9800 or you can email them on flisp@nhfc.co.za

  201. Thandeka Mtshali , 31 October 2013

    my parents bought their house in 1990 but my dad lost his job in1997 my mom tried to negotiate with the bank but she was told that the house was already sold to estate agents.over the years different people have come forward claiming to have bought the house recently when we printed the title deed the house is registered in four different people including my dad,we were advised that we must apply for goverment subsidy and we will be subsidised with R80000.which will be given to the owner of the house currently and the house will be ours again.is this information true if not what others steps can my parents take because now they are pensioners and everynow and again they receive court orders to vacate the house and they have nowhere to go.

    • Kecia , 05 November 2013

      Hi Thandeka. This is such a difficult problem that you have. I think you should get some legal advice. Have you tried to contact Legal Aid? They would take a look at the title deed to confirm what you say, and then they’d give you options on how to deal with the problem. In principle, if your parents lost their house through an auction, given non-payment, they shouldn’t qualify for a housing subsidy now – that is, unless their loan was included in Government’s Servcon programme. If you can get some legal advice, they’ll help you figure all of this out. Good luck!

  202. nadia , 08 November 2013

    hello,i have a question,if my husband earns R5700 per month how much would he qualify for a housing subsidy and also how much would he qualify for a bond at a bank,we’re interested in buying a house of R300 000 but not sure if we’ll qualify for that amount at a bank,what are other options,as we’re not interested in RDP houses

    • Kecia , 08 November 2013

      Hi Nadia. Yes, at R5700 per month, you can apply for the FLISP subsidy. Take a look at the NHFC’s brochure on the subject – that will tell you what amounts you can expect to qualify for. Once you have a sense of the amount you might get, then you can subtract that from the purchase price and approach the bank to approve you for a mortgage for the difference.

  203. cheree , 09 November 2013

    I would like to knw im married have 1child nd is black list will i be abile to apply and is there any offices i can go to for help???

    • Kecia , 14 November 2013

      Hi there. If you want to apply for the FLISP subsidy, you have to also qualify for a mortgage loan. That means you have to resolve your black listing first. I spoke with the National Credit Regulator, and they said that you need to call the Credit Bureau and find out what kind of a listing they have against their name – there are different sorts of listings that mean different things. You can call TransUnion Credit Bureau on 0861-482-482. By law, you are entitled to ask for one free credit report per year. When they give you the report, they’ll explain the implication of the listing against you, and what this means for your credit situation. Good luck.

  204. Refiloe , 09 November 2013

    I earn R7300 and on debt counselling can i be able to get house

    • Kecia , 14 November 2013

      Refiloe, to get the FLISP subsidy, you have to also qualify for a mortgage loan. Qualifying for a mortgage loan all depends on how the lender evaluates your credit application. Your debt counsellor should be able to tell you more specifically, but I would assume that you’d have to resolve your debt situation first, before taking on more debt.

  205. Andrew , 18 November 2013

    Hi i woulk like to enquire if i do qualify for subsidy?I earn R6,200 but under Administration can a Government assist me on this situation as i really need my own house i never had a property before.If i cancell Administration and start paying my accounts on my own can i qualify?

    • Kecia , 19 November 2013

      Hi Andrew. While your income should qualify you for a FLISP subsidy, the subsidy is only available if you can also access a mortgage loan to go with it. Unfortunately, if you are under administration, its unlikely that you’d be approved for a mortgage. You need to resolve your debt situation first – make sure you pay back all of your debts and clear your credit record, and then you can apply for the subsidy together with a mortgage.

  206. Shorty , 22 November 2013

    Hi Kecia

    I do not have kidds of my own and would like to know if i qualify for a flisp

  207. Jason , 22 November 2013

    Hi Kecia, I am unemployed but have previously worked and was earning R3500 a month. I do have money in the bank so I won’t be needing a loan from the bank. I have never bought a house before. Firstly do I qualify. Secondly what should I do if I find a property under R300 000 that I like?

    • Kecia , 28 November 2013

      Hi Jason. Even though you have money in the bank, you can’t access the FLISP unless you tie it to mortgage finance. However, the mortgage you access doesn’t have to be the full amount of the purchase price – you can use the FLISP subsidy plus your savings to pay for the bulk of the purchase price, and then a mortgage loan for the difference. Once you find a house in your price range, you can put in an “Offer to Purchase” that is conditional on the award of the subsidy and the approval of the loan. Then take that document to the bank and apply for a mortgage, conditional on the approval of the subsidy. Of course, you’ll need to be employed, however, for this to be approved. Once the in-principle approval for the loan is given, you can go to the National Housing Finance Corporation (NHFC) – they are the administrators of the subsidy – and with all of these documents, apply for the subsidy. Take a look at the FLISP brochure that the NHFC has prepared for more info: you can download the brochure here.

  208. Faith , 25 November 2013

    Hi we have been informed that our late mother RDP house is ready im 26 and my sister is 37 we are both benefiries, does the house belong to both of house im currently working and earn more than the 3500 and she is not ,

    • Kecia , 28 November 2013

      Hi there. I’m not entirely sure about the transfer of the RDP benefit in this case. I think you should contact your local municipality and explain the situation to them. They’ll need to see a copy of the death certificate, and a Will stating that you and your sister are the beneficiaries. If they are resistant, you might want to ask a legal NGO like Pro-Bono or the Centre for Applied Legal Studies to help you.

  209. Hillmer , 28 November 2013

    Hi i had bought a house in October 2012 .I went to various housing institutes and banks to find out about flisp and how can i apply for it alot din’t know about it and some said it wasn’t implemented yet.So i went ahead and and buy a house without flisp later on i heard that it was implemented in april last year and that if you are a first time home owner and bought or are going to buy a house u can apply for this subsidy.The only difference is if you already bought the house the money will be paid on your bond.
    I want to find out if such thing(Flisp) exsist and can i apply for it because i wanted to apply for flisp but know one knew about it or din’t know if it was implemented yet.Only problem is i bought a house and have a bond know.
    Please help me to get clearity about the whole situation

    thank you

    • Kecia , 28 November 2013

      Hi there – I’m afraid you don’t qualify any more because the transaction has already gone through. You might want to call the NHFC directly, however, and tell them that the banks you consulted were ill informed. You can reach them on 011-644-9800

  210. Becky , 28 November 2013

    Hi myname is Rebecca my salary is R9750.00 after deduction do i qualify for a goverment subsidy and what steps should i take when applying

    • Kecia , 29 November 2013

      Hi Rebecca. At your income, you should qualify for some subsidy – however, you must have dependents, and also qualify for mortgage finance that you use together with the subsidy to pay for the house, which must cost less than R300 000. The National Housing Finance Corporation administers the subsidy scheme. They’ve developed a brochure which you can download from here.

  211. HLONI , 28 November 2013

    hi!would like to know if we buy a house through a private sale would we qualify for a flips.My husband earns around R9000 and after deducation we are left with R6600

    • Kecia , 29 November 2013

      Hi there – yes, you can buy the house through a private sale, but the transfer must be legally effected by a conveyancer. Make sure that the seller has a title deed registered in his or her name on the deeds registry. You then need to get a conveyancer to do the formal legal transfer of the house. The other rules still apply: you have to earn a household income of less than R15 000, buy a house that costs less than R300 000, and also use mortgage finance to pay for the house. The NHFC administers the subsidy scheme. They’ve developed a brochure which you can download here.

  212. Kabelo , 03 December 2013

    Hi Kecia

    Can since the price range for purchasing a GAP house is a maximum of R300000.00, can we apply to to purchase a repossed house since most the those houses are in that range & easy to find?

    • Kecia , 05 December 2013

      Hi Kabelo. Yes, you can apply to purchase a repossessed house – that’s a very good idea. Just make sure you have all the other things in place: your subsidy, the loan, the offer to purchase, etc. Take a look at the pamphlet from the NHFC to see the detailed steps. Good luck!

  213. LINDY , 07 December 2013

    HI KECIA

    I would like to find out about the flats behind Jabulani mall if one becomes vacant how do one get information regarding getting in one of them. Course i was told to call the offices during the 20th till month end but no help has come through yet

    • Kecia , 08 December 2013

      Hi Lindy. I’m not sure about those flats – depending on whether they’re for sale or for rent, you need to contact the developer or the landlord. If you’re looking for a FLISP subsidy to buy one of the flats, then perhaps call the NHFC and ask them about availability. I’m sorry I don’t know anything more specific about that project.

  214. prash , 10 December 2013

    Were are the flisp offices in Durban. And how long does it take to proces

  215. zukiswa , 14 December 2013

    thank you for your help i ve gained.tell me how to buy a house in full is there any discount?and where must i go?

    • Kecia , 09 January 2014

      Hi Zukiswa. I’m not sure I know what you mean. If you want to buy the house with cash – that is, without any loan finance – then you can’t access the FLISP subsidy. The FLISP only works when it is used together with mortgage finance.

  216. Thoriso , 19 December 2013

    Hi Kecia, have bought new property from cosmo projects that is worth less than R300K. Would like to know if I can still apply for subsidy from government? The property is in process of being built. Secondly, for qualification do they look at your gross or your net? Thanks.

    • Kecia , 09 January 2014

      Hi Thoriso. If the transfer hasn’t yet gone through for your house, you should be able to apply for the FLISP subsidy. For qualification, they look at your gross salary: gross household income must be less than R15 000 per month. You can call the NHFC for more information.

  217. faizunisa ebrahim , 25 December 2013

    My question has nothing to do with housing however I see u r well clued up I need to know where can I get a consolidation of debt loan my problem is that my salary does not go into a bank acc however my employer is willing to give a letter to state thaat he can start doing so.plz advise

    • Kecia , 09 January 2014

      Hi Faizunisa. I’m afraid I can’t advise on this. You will need to discuss it with the loan provider. When you take the debt consolidation loan, however, make sure you have good advice, and that the consolidation puts you into a better position and doesn’t put your house at risk. You might also want to consult a debt counsellor. The National Credit Regulator has information about this: http://www.ncr.org.za/index.php?option=com_content&view=article&id=90

  218. Mbali , 30 December 2013

    Hi Kecia.

    I have a house in Fleurhof that I bought and moved into last year. Only found out about the subsidy recently. Have been paying back the bond for about a year now and would like to know if I can still apply for the subsidy and where do I do it?

    • Kecia , 09 January 2014

      Hi Mbali. I’m afraid the FLISP subsidy only applies towards a purchase currently underway – it cannot be applied retrospectively to a transaction that has already occurred. If you have already received transfer of the house – if it is legally in your name on the deeds registry – you do not qualify for the subsidy. I’m sorry.

  219. nwabisa , 06 January 2014

    i am working for SAPS as a consablbe earning R8 000.00 pm aftr deductions i would like to know that do i qualify for this subsidy? 0783088417

  220. geraldine , 08 January 2014

    hi i am blacklisted earn just more thn 3500 a month married but dnt qualify for a bank house where do i start ….dont want to stay in my mothers yardall my life
    Desperate

    • Kecia , 09 January 2014

      Hi Geraldine. I understand your frustration. The place to start is to address your blacklisting: get your credit in order, and clear your adverse credit record. Once you’ve done this, you will be in a position to access finance to buy an entry level house in the resale market. We’re still in the early days of the FLISP subsidy, so you have some time. If you can manage it, you should also start saving, however little is feasible, regularly every month. This will demonstrate to the bank that over time, you have the financial discipline to handle a mortgage loan. The National Credit Regulator offers information about debt counselling – perhaps this might also help you. Visit http://www.ncr.org.za/index.php?option=com_content&view=article&id=90

  221. Dan Ngobeni , 10 January 2014

    I want to know if i quilfy to buy a house I’m earning 5000 plus commision a month (around Gauteng)

    • Kecia , 30 January 2014

      Hi Dan. At your income, you fall into the target market for the Finance Linked Individual Subsidy Programme (FLISP). However, in order to access that subsidy you have to also qualify for mortgage finance – and your income is somewhat low for that. I suppose it depends on how much commission you earn per month, and how reliable it is. Take a look at the NHFC’s pamphlet on the FLISP – it will give you information on eligibility and how to go about applying. If you can manage to buy anything, it will have to be a house on the resale market – probably something in the R150k range, if you can find it, or perhaps a bit cheaper. That will be difficult in Gauteng, so its likely you’ll have to rent while you save money towards buying a house later.

  222. Ntombi , 11 January 2014

    Hii there, I get R2970 per mnt what can I get out of it as it doesn’t even reach Mr Zuma Lowest price. RDP will wait till my hairs turn Grey, any suggestions? And R20. 000 saved pocket moneY

    • Kecia , 30 January 2014

      Hi Ntombi. You’re right: the RDP housing subsidy programme can take a very long time. Some people have been on the waiting list for over 10 years! At your income, however, there really is no other alternative, other than renting. I’m sorry. Make sure you are on the RDP waiting list for your area though – you never know – your turn may come.

  223. Siphiwe Nxumalo , 11 January 2014

    Good day,
    I would like to have my own home … I am struggling to get a loan from Banks because of previous bad record. I am now having a stable job and I believe it time I build a home for my wife and kids. Please help….

    • Kecia , 30 January 2014

      Hi Siphiwe. You’re going to have to go through the process of clearing your credit record in order to get approval for a mortgage loan – and this is the only route you can take at the moment to get the FLISP subsidy. Take a look at the National Credit Regulator website (www.ncr.org.za) for information on how to clear your credit record.

  224. trisha , 13 January 2014

    Hi

    please advise me if I could apply for a house, I am a single parent, I earn an income of R4500.00

    Thank you

    • Kecia , 30 January 2014

      Trisha, while you fall within the target market for the FLISP subsidy, your income is probably too low to qualify for mortgage finance. The only other option you have is to apply to your municipality for a free, serviced stand – this is an empty plot of land with services – and then you’d build your house step by step on that land. Unfortunately, not many municipalities offer this aspect of the FLISP policy. Ask yours if they do.

  225. Natasha , 21 January 2014

    Hi

    Do I qualify for a subsidy, if I am building a house.

    Thanks

    • Kecia , 30 January 2014

      Natasha, in principle, this is not a common way to get the housing subsidy. It depends on what subsidy you’re applying for, and where you live. I recommend that you go and speak with your local municipality – take to them details of the land on which you want to build your house and ask them if they’d approve a subsidy in your case. I hope they approve it, because its very helpful when individuals participate in their own housing processes. Our housing backlog cannot be addressed by government alone.

  226. Marj , 22 January 2014

    Hi Kecia

    I get 4029 after deduction and am paying 1317 per month for 26month loan. i did apply for a flat with new one of new of company you mentioned there but i put my younger brother as well cause for me to qualify they need 8500 salary so he earn 6900. so what i want to find out is can they allow me to apply for subsidy or will they want my younger brother to apply for it cause i know that since he is the one who earn more he is going to be the main not me.

    • Kecia , 30 January 2014

      Hi there. To qualify for the FLISP subsidy you need a household income of R3501-R15 000, and you need to qualify for mortgage finance to buy a house costing less than R300 000. You’re right in believing that your brother is more likely to qualify for the mortgage than you are – he has the higher income. However, in order to afford the flat you saw, its likely you’ll need to combine your two incomes. This would mean that you have a joint income of R10 929 – giving you affordability for a larger mortgage but a smaller FLISP subsidy. Take a look at the NHFC’s pamphlet on the FLISP – hopefully this will make it clearer.

  227. Lynette , 24 January 2014

    I am really impressed that Kecia exists to answer all our questions (every single one). Getting information from the government can be a very frustarting and long process, what is happening here is wonderful. Well done Housing Department and Kecia.

    • Kecia , 30 January 2014

      Thanks so much Lynette – that’s very kind of you to say. You’re right – it is great that our government supports housing in South Africa, even though the process can sometimes be very frustrating indeed.

  228. tony , 24 January 2014

    Hi
    I can buy a house from my brother for a very good price . I currently rent from him. My income 6200 and are married with 2 children. My question is do I qualify for flips for it is an existing house. The price is so good that I can pay the differens to. Is the morgage a must and what banks do the morgage loans. I bank with capitec.

    • Kecia , 30 January 2014

      Hi Tony. In principle, yes, with your income and situation, you should be able to use the FLISP to buy your brother’s house. The mortgage is a must – you have to qualify. You can approach one of the big banks, or a smaller mortgage lender. Take a look at the FLISP subsidy pamphlet to find out more.

  229. Lilizana , 26 January 2014

    Hi Kecia, I Earn R7700 basic salary per month. I work at the City of Tshwane Municipality and I want to buy a flat in Sunnyside Pretoria for R295 000, do I also qualify for the flisp subsidy if buying in this area? I have already confirmed that I qualify for R62 000 but the agent wants to know if the area is allowed, please revert soon, I do not want to loose this flat, Thanks.

    • Kecia , 30 January 2014

      Hi Lilizana – yes, Sunnyside is certainly allowed. In Gauteng, you can use the FLISP to buy a property in the resale market. Submit an offer to purchase conditional on the approval of the subsidy and mortgage finance; then take this offer to your bank to apply for the mortgage you require; and then take your mortgage approval and the offer to purchase to the NHFC to apply for the FLISP. Good luck!

  230. Nadene , 27 January 2014

    Hi Kercia
    I am a single mother(one child) and is living with my mother at this point in time. I am on the waiting list for a house but does not qualify anywhere, I earn 5336.00 before deduction and after deductions I walk away with 4828.36. I have phoned everywhere to find out what i must do to own my own house, i dont qualify for the RDP houses, dont qualify at the bank because i dont earn 6000,00 and more. the housing schemes in cape town says the following CTCHC (R3000 to R3500) Harmony Village(M/Plain)Please Read Attachment
    Bank bonded houses(R12500 to R20000) West Cape Villas(M/Plain) Contact Person: Manelisi(Office Nr. 021 552 1780)
    I dont fall into any of the catogories, what can I do.
    if i can get a plot i will build my own house out of my pocket.
    the bank wont give me the money for the house, please assist. if i can get assistance on how to go about or help with buying the house i am willing to pay R1000, 00 every month in order to secure my own place.
    Apartment Complex(R9500 to R18000)Mount View Villas (Maitland) Contact Person: Jacques(Office Nr. 021 552 1780)

    • Kecia , 30 January 2014

      Hi Nadene. thanks for providing such detailed information about your situation. You’re absolutely right: in your situation and with your income, you fall between the categories. In Cape Town, the municipality has been implementing a land programme, using the FLISP policy. Targeted at people in similar situations as you – earning R3501 to about R7000 – the City is offering free, serviced land, on condition that the recipient then builds a house on it. The approach is still very new but CT has been a frontrunner in this area. Please go see your municipality and ask them how you can access the serviced stand programme. Good luck!

  231. Prudence , 30 January 2014

    Hi Kecia, i find your answers very informative. Please advise my fiance earns R 8500.00 while I earn R 4455.00. We will be first time home owners with one dependant. Please advise whether we would be able to qualify for the finance. Alternatively if either of us apply seperately (in order for at least one of us to qualify is this advisable). I also a bit advised about how the qualifying finance works. Is it correct that we must have first been approved by the bank to qualify? Does it also make any difference if you are permanently employed or not.

    • Kecia , 30 January 2014

      Hi Prudence. Take a look at the NHFC’s pamphlet for more information on the FLISP. To qualify, you need to have a household income of less than R15 000 – you can’t apply on your own. With a household income of about R13 000, you might qualify for a FLISP of about R22 000, and then a mortgage loan of about R314 000 (if you have no other debt). However, there’s a catch: to get the FLISP subsidy you have to buy a house that costs less than R300 000. This is actually a good thing because it means you won’t be so burdened with bond repayments when you and your finance start out.

  232. nolan , 30 January 2014

    hi
    housing is a major concern as over 80% of South Africans are on itc so who are the houses build for why cant people get help from the government in regards to housing as they take our tax money regardless is we on itc or not yet cant give back to the community where needed when will the government step up and seriously take steps as rdp houses are built for people under R3000 which are people that are not register,don’t pay tax , what about the community that pays tax where do they stand what help is the government offering them they can build etolls for billions prices increases like mad if not every 6 months build house in the millions for them with the same tax payers money yet what help is given back please do something about this we as south Africans need to take steps and question the government as to what help can they offer or are they not willing to help just take tax money

    • Kecia , 31 January 2014

      I’m with you Nolan. We have a very real gap in the market that is neither served by government policy nor by what the private sector is delivering. Its about 25% of our population, as the President said, “who earn too much to qualify for an RDP house and too little for a bank mortgage bond”. The FLISP policy isn’t substantial enough in our current housing finance framework to address the problem. In this past fiscal year, there were only 7500 FLISP subsidies available, for both newbuild and resale stock. That said, we also have to appreciate that tax money should target households who have no financial capacity themselves to meet their housing needs without state support. The majority of South Africa’s population sits in this category, and you can see this with the proliferation of informal settlements across the country. This is a policy debate with very real practical implications. There aren’t any easy answers – but it helps to raise the problems so that our politicians and policy makers understand what’s happening on the ground, and how people feel.

  233. Bonginkosi , 02 February 2014

    Hi, i would like to know. how can i buy a flat or a house cost about 300 000 when i ha a personal loan of 60 000 where i am on a balance of 49 000. do i qualify for a subsidy

    • Kecia , 03 February 2014

      Hi Bonginkosi. If you earn between R3501 and R15 000 household income per month, have never owned a house before, have never received state support for housing before, and can qualify for a mortgage bond, then you can qualify for a subsidy to buy a house. To qualify for a mortgage bond, you have to have a pretty clear credit record, so you should work hard now to pay off your personal loan. In the meantime, look for a house that costs less than R300 000 (you will probably have to find a house thats available on the resale market) and make an offer to purchase that is contingent on you receiving a subsidy and qualifying for finance. Then you can go through the applications processes for the subsidy and the loan simultaneously.

  234. Bongani , 04 February 2014

    i have assistate my brother in applying for joint bond that was approved last year february, the payments are deducted from his salary. can i qualify for a subsidy as i fall within the bracket of low income earners with a basic salary of R4950.90. please advise.

    • Kecia , 05 March 2014

      Hi Bongani – it all depends on whether the the title deed for the property that you’ve supported your brother on is in your name. If there is any record of you having owned property before, or currently owning it now, you will not qualify for the subsidy. However, if you have never owned property before and if you can demonstrate affordability for a mortgage loan, then you may well be eligible. The downside is that at your income, you will find it difficult to qualify for a mortgage loan, and without that, you can’t access the FLISP. You will need to find a house, most probably on the resale market, that falls within your price range – something costing less than about R180 000, against which you’d apply the FLISP subsidy of about R80k and then access a mortgage loan of about R100k. If the banks gave you an interest rate of 12% (this depends on your risk profile, so you have to ask them), you might find yourself paying about R1125 per month in mortgage loan repayments – and your commitment would be for 20 years. Go to your bank and see if they would qualify for you for such a loan.

  235. Portia , 12 February 2014

    hi, where can I submit all the necessary document for FLISP

  236. Shirley , 19 February 2014

    Where can i get a application form

  237. Zanele , 19 February 2014

    Hi Kecia,my name is Zanele and my gross is R3600 and nett is R3240 I have a daughter that goes to school,I’m also a part time student who pays her own fees so I will not afford to pay a bond.Do u think I will qualiy for the RDP subsidy?

    • Kecia , 05 March 2014

      Hi Zanele – you fall outside of the eligiblity for the RDP subsidy on two counts: first, your income is too high – the upper threshold is R3500 per month gross. Second, it doesn’t sound as if you have any dependents – you can only access the subsidy if you have other people who depend on you for their livelihoods, like children, parents or siblings. On income, you do fall within the eligibility criteria for the FLISP (although only just), but even there, you need to have dependents.

  238. Xoliswa , 25 February 2014

    My name is Xoliswa i have 4 children i am a first home buyerand i am qualiefiy for the housing subsid from1998 iregister long time but idid not get the house now itry to apply for Bond but the Bank decline me all these years but last year on Augast i try to apply for the Bond again sow iget the Bond from standard Bank so i go back to them they said iam late imust apply for FLSP and they dont want to help me and its firstime I hear about this cause I am not educated and my nett salary is R4000 the Bond deduction is R2000 so please I am struggling! Will you please help me I dont know what must I do my house is 5 month only please guys I hear from people at work about this FLISP cause they see my stuation I need your help thank you.

    • Kecia , 05 March 2014

      Hi Xoliswa. I am so sorry, but the FLISP does not apply retrospectively. I am quite surprised that Standard Bank didn’t give you this information, and that they gave you a mortgage for which the repayment is 50% of your income. At this stage, I don’t think there’s anything you can do. I’ll see if I can find out more information and will let you know if anything comes up.

  239. Temsi , 05 March 2014

    Hi
    I earn R5700 a month. I have a bond on my house of about 110 000. It is difficult to pay the bond each month on my salary. Would I be able to apply for a subsidy? How do I do it?
    thanks

    • Kecia , 05 March 2014

      Hi Temsi. I’m sorry but the FLISP subsidy does not apply retrospectively – you cannot access it if you have already bought a house.

      • Mphonyana , 13 March 2014

        Hi, my name is Mphonyana.I have two kids and my income is within the listed threshold.I’m currently renting a flat from Joshco housing company in Jhb.When we firstly applied for these flats we were told they are rent to buy and along the away everything changed and when we received the lease it stated that flats are for rental.Apparently when we applied for the flats we were told they were subsidised by government but I’m not sure what kind of subsidy?I want to know if I do qualify for FLISP?

        • Kecia , 13 March 2014

          Hi Mphonyana. If you are renting a flat from Joshco, its probably subsidised with the government’s institutional housing subsidy. This is a subsidy from the government that is given to landlords to make the flats they offer more affordable to lower income clients. If you lived in a subsidised flat, it doesn’t disqualify you from moving out and accessing the RDP or the FLISP subsidy – so don’t worry about that. To get the FLISP, you have to earn between R3501 – R15 000, and you would then use the FLISP together with mortgage finance, to buy a house that costs less than R300 000. Take a look at the pamphlet on the FLISP, and see if that helps you.

  240. fatima naeem , 12 March 2014

    I like to apply for a house subsidy nd were,IM merriest but we separated nd have for kids he is a Pakistani nd leave me but IM not working nd live with my granny ‘s sister nd get grant for my kids pls im desprade pls for th sake of my kids stability,safety,nd lifestyle.

    • Kecia , 13 March 2014

      Hi Fatima. Your situation does sound desperate. I see that you earn R1200 per month. At that income, and given that you have dependents, you should be able to apply for the RDP subsidy, which if approved, would give you a house for free. The problem with that is that there is quite a long waiting list; however your income is insufficient to support loan finance. If you’ve already made an application, you need to call back frequently to make sure they have your details. If you haven’t yet applied, do so as quickly as possible. Your only other option (and this is a long shot) is to see if your province allows people to apply for an INDIVIDUAL RDP subsidy. What this means is that you could use the RDP subsidy (which is about R87 000, I think), to purchase a house on the resale market. Ask your provincial government if they offer the individual RDP subsidy (I know the Western Cape does) and ask them how to go about applying. Good luck.

  241. fatima naeem , 12 March 2014

    I really need it nd I just have that income of R 1200 a month nd th last nor’easter twins is just 2 years old…..!?

    • isabella , 22 April 2014

      i am currently living in alexandra johannesburg,and i have applied for the flat in bohlabela alexandra so the problem is they have declined my application and i really need that flat

      • Kecia , 04 May 2014

        Hi Isabella. I’m not really sure what to say – did they explain to you why they declined your application? It may have something to do with your income, or that you don’t satisfy other qualifying criteria. Give them a call and ask them for reasons for your decline. Perhaps they can also suggest somewhere else for you to apply.

  242. Thabo , 16 March 2014

    notify me on any new developments in Gauteng

    • Kecia , 17 March 2014

      Thabo, you should contact the NHFC for details on FLISP developments in Gauteng. You can call them on 0860 011 011.

  243. sarah , 18 March 2014

    good day i only earn 4000 a month would i be able to get a subsidy and were can i go for more info coz iam stragling
    thanx sarah boksburg

    • Kecia , 16 April 2014

      Hello Sarah. At your income, you should qualify for the full FLISP subsidy of R87 000 – however, you wouldn’t qualify for enough mortgage finance to be able to buy a house, and the FLISP is only available if you link it to a mortgage. There is a clause in the FLISP subsidy policy, however, which says that people earning R3501-R7000 can get a serviced stand for free, instead of the FLISP cash amount. You need to go to the housing offices in Boksburg and ask them if they’re delivering serviced stands to meet this policy objective. Then, if you can get freehold title to a serviced piece of land, you can use savings and microfinance to build your home incrementally, over time.

  244. ayanda , 19 March 2014

    Hi
    i want to know if i qualify for a subsidy i am very keen in buying in fleurhof new developments .
    i am earning R8500 .
    please let me know and can is there anyhow i can cut out the middle man and buy direct as i know they might hike the actual price.
    your respone will be highly appreciated.

    • Kecia , 16 April 2014

      Hi Ayanda. I’m afraid you need to buy your property through the regular channels. At your income, you should just qualify for enough of a mortgage which, together with the FLISP subsidy, should make you able to buy a Fleurhof unit. Take a look at the FLISP pamphlet, and take it from there. Good luck.

  245. Girle Papane , 27 March 2014

    I am a divorcee with 2 children and want to find out if South African Revenue Services Employees also qualify.

    • Kecia , 16 April 2014

      Hi there. If you earn less than R3500, you qualify for an RDP housing subsidy which would give you a house for free. If you earn between R3501-R15 000, then you should qualify for a FLISP subsidy which would give you an amount to use as a deposit towards a house costing less than R300 000. You would then have to access a mortgage bond to pay the difference. Yes, SARS employees also qualify.

  246. keitumetse , 29 March 2014

    Hi, Kecia Im earning currently 6500.00 before deduction, but when i call around they advice that if atleast i should be in a range of 8000.00 but with their adverst is advicing from 3501 to 7000.00 really i just need to know how will this work.

    • Kecia , 16 April 2014

      Hi Keitumetse. It is confusing. The FLISP subsidy targets households earning R3501 – R15 000 per month. However, it is only accessible with mortgage finance, and if used to buy a house that costs less than R300 000. If you want to buy a new house, it would cost in the range of R280 000 – R300 000, and there are very few of these available. To afford such a house, you would probably have to earn about R10 000 per month (at this income, you’d qualify for a R43 000 FLISP subsidy and possibly a R234 000 mortgage, enabling you to buy a house costing about R277 000). However, at your income, you could possibly afford a house of about R211 000 – basing the calculations on an income of R6000, this would mean a monthly payment of R1500, a loan of about R140 000 and a FLISP subsidy of about R70 000. They don’t build houses anymore for this price – you’ll have to find a house on the resale market. In some areas, you might even find a resale house (for example, an RDP house that has been around for more than 8 years) for less than this amount. You can use the FLISP to buy a resale house, so first look to see what you can find, then tell your bank to help you do the calculations and see if you can make it work. Good luck.

  247. Clivette , 29 March 2014

    Please stop fussing, why do you complain if you do have a roof over your head?Then you still want to improve it. Give those a change who does not have the opportunity to sleep warm and knowing they have shelter. Yes the Government is sly and does not have any interest in our needs and the expenses we have to pay every month and yet they still want us to get into deeper debt when applying for a house, oh and then the application takes forever. Please people looks like we voting for a dead nation

  248. Clivette , 29 March 2014

    Oh and what about the people that already have houses and still getting houses from the government? And tell me what about the people that rent their houses out for money to pay off their debts…..typical South Africans hey, one nation one voice…..do you hear the irony in that?

  249. nonhlanhla , 04 April 2014

    am so confused with this agent that are working there at fleurhof, i once went there to inquire about the houses am earning R8000 after deduction R6800and they told me i dont qualify i should combine my salaries, why were they saying this give me a false information?

    • Kecia , 16 April 2014

      Hi Nonhlanhla. It all depends on how much the Fleurhof units cost. I believe the entry-level flats go for about R292 000. To afford this, you’d have to earn at least R11 000 per month – you’d get a FLISP subsidy of about R35 700 and then qualify for a mortgage of about R257 0000 (that is, if you have no other debt). At your income, you would do better to find a property on the resale market – something in the range of about R230 000. Take a look at the FLISP pamphlet and then call the NHFC for more help.

  250. Pauline , 09 April 2014

    I need subsidy foms I have offer to purchase with a private landlord. I need to apply and find out if i qualify or not, and if i qualify for how much.

    regards

    • Kecia , 16 April 2014

      Hi Pauline. It depends on what you earn, and other factors. If you earn a household income of less than R3500 per month, you would qualify for the RDP subsidy, or for an individual subsidy. This can be accessed without a loan. If you earn between R3501-R15 000, then you could qualify for a FLISP subsidy, which has to be accessed together with a mortgage bond, and has to be used to buy a house for less than R300 000. Take a look at the FLISP pamphlet and then you can call one of the numbers listed there for more information.

  251. Babsy , 11 April 2014

    Last year i bought a house through the bank,,,while it was still on process before transferred,i received a call from bank consultant,,telling me about the FLISP programme that they gonna fax my documents to them,,then i said okay that`s fine,,,,but after that ddn`t received anything,,,call,sms or email from anyone,,,so i like to know if is it possible to help me,,,,PLEASE

    • Kecia , 16 April 2014

      Hi there. If you’ve already received transfer on the house that you bought – that is, if its already in your name – then you cannot access the FLISP any more. The FLISP doesn’t apply retrospectively, and you have to access it at the same time as you access the mortgage bond and buy your house. If the transfer has not yet gone through, then you might still apply. Take a look at the FLISP pamphlet and then call the NHFC – the numbers are on the pamphlet.

  252. johannes manamela , 15 April 2014

    hi kecia,i have applied for a house subsidy last year and now the house is already been build and in and now I don’t think they have gave me the subsidy,how can I get it?

    • Kecia , 16 April 2014

      Hi Johannes. If you’ve already received transfer on the house – that is, if its already in your name – then you cannot access the FLISP any more. The FLISP doesn’t apply retrospectively, and you have to access it at the same time as you access the mortgage bond and buy your house. If the transfer has not yet gone through, then you might still apply. Take a look at the FLISP pamphlet and then call the NHFC – the numbers are on the pamphlet.

  253. MPHO , 16 April 2014

    HI,I would like to know why do I have to qualify for a mortgage
    first before I can qualify for the subsidy because if I qualify I wouldn’t be needing it.its very unlikely that someone would be earning less than 8000 and have no other credit commitments.So why not give the subsidy anyway and then i will give it to the bank as deposit if that’s not whats happening now

    • Kecia , 16 April 2014

      Hi there. I agree it is confusing and doesn’t really make sense in some cases. The government wants to tie the FLISP subsidy to a mortgage because that’s how they make sure that you use the subsidy to buy a house and not something else like a car or furniture or whatever. There have been some organisations who have put to government to change their approach and to allow the FLISP subsidy to be tied to either a housing micro loan or a pension-backed loan – but this hasn’t yet been agreed in terms of the regulations. At this point, the only way to access the FLISP is to access it together with a mortgage loan. But to be clear: you don’t have to qualify for a mortgage for the WHOLE purchase price of the house. What you need to do is take a look at the tables in the FLISP pamphlet, to see how much FLISP you would qualify for, then take this to the bank and tell them that you want a mortgage for the difference between the purchase price and the FLISP (which you’re using as a deposit). The bank should understand this process. Let me know if there’s a problem.

  254. Louisa , 22 April 2014

    I would like to ask about the FLISP process, how long does it take for them to approve/pay the qualifying amount once the bank has approved your Home Loan.

    • Kecia , 04 May 2014

      Hi Louisa – I’m not entirely sure. I believe the NHFC has committed itself to a seven day turn-around time. If they take longer than this, you should certainly call them. Take a look at the FLISP pamphlet and give them a call.

  255. khasiefah , 23 April 2014

    whats unfair is that i earn almost 15 000 and i pay 4000 tax a month for all of this…i however have to rent coz if i apply at the banks i earn to little they reject me for affordability and if i apply for a councel house whitch im willing to pay full amount no subsady as my company give me a R1000 a month subserdy i cant get a councel house so i go more and more in debt renting paying deposits moving from house to house paying other peoples bonds so paying tax does not benefit me the goverment is telling me to leave my job not live comfortable to be able to own a home. we are a familty of 5 living a day to day life to keep a rented roof on our headsi cant get bank approval so i asked housing department to assist il pay a normal bond i cant get that either so i have to pay tax for other people to get free education and houses and i cant even get a councel house in any area to pay as per normal. how fair is that, so im leaving my job then applying then see how im gonna pay that councel house…consider peoples debts school fees kids expenses as well not just that they earn alot why not get a normal bond coz in this western cape we cant get bonds did u see the price of petrol thats the cause of us struggling to make ends meat get houses and live comfortable did u see all the people from eastern cape getting houses did u see our schools 40 kids per class only 40% from the western cape did u see why people quit jobs and put shacks up and get a house on that spot should all the tax payers that cant get bank approved do that then whos gonna pay tax for all this then. i am highly frustrated of renting paying R4000 a month rent where i could pay R4000 a month bond and be home not worried how long we still going to live on peoples yards or pay an agency and where is the next deposit going to come from if we have to move again. nothing in south africa is for south africans anymore look around and see how we are all struggling no matter how much you earn its never enough the more you earn the more difficult it is for you to come anywhere with this goverment no matter the amount of tax you pay.

    • Kecia , 04 May 2014

      Hi there. You’ve listed so many problems – and I think you’re right – its very difficult to make ends meet at your income, especially with a family of five. The problem is, of course, that there are so many people in your situation. Almost 85% of our population earns R15 000 household income or less. That’s a lot of people for government to support – and the queue for government housing support is very long. Still, if you don’t have any other debt, you should be able to access a mortgage bond, and afford to buy an entry-level house on the resale market. If you buy something for less than you can afford, you can rather save money to improve your home over time, in the way that suits your family’s needs. Let me know how it goes, and if the bank does consider your application.

  256. itumeleng , 27 April 2014

    hi I’m itumeleng, I want to know whether do I need to have a partner to qualify for RDP subsidy. because I’m single and I don’t have kids and I earn less than R3500.

    • Kecia , 04 May 2014

      The RDP subsidy is available to people with dependents – that means, either a partner, or children, or other people that you support financially. I’m afraid its not available to single people.

  257. Ruth , 05 May 2014

    Hi Kercia,my husband salary is in range of 13000 gross,when he tried to buy an existing house he did not qualify,being tired to rent he went for still to be built houses at jabulani heights,calgro m3 he unfortunately boght a bachelor and it is very small,he moved in 01 aug 2012,i told him to go cancel it on 6 sep 2012 at the bank he was told the flat should be registered first,after my reserach I realised that you can be able to cancel before the flat was registered,went to agent with my husband on the 5 oct 2012 who told us that the flat has already been registered however when I look at the title papers it was registered on the 16 oct 2012,so the bank nd agent both mislead us,the flat is so small I could have fit in a bed,we the only one occupying this bechelor and all other bachelor are empty no one would actually buy,my question is can we qualify for a two room house im an entrepreneur my company is still small salary fluctuating from 3000 to 8000 it depend on the month or which channel can we take so that calgrom3 can buy the bechelor back as I doubt no one will buy the bachelor flat from us,because previously we asked they move us to a two bedroom flat but the refused.tnx

    • Kecia , 08 May 2014

      Hi Ruth. From your description it looks like you’ve taken legal transfer of the property – it is now in your name. This means that you will not qualify for a FLISP subsidy, because you already own property. With your household income of about R13 000 + R3 000 (conservatively, given what you’ve said), however, you still wouldn’t qualify for the FLISP because this is only available to households with a combined income of less than R15 000 per month. So, the question is now, what to do with this flat that is too small. You could try and sell it back to Calgro and replace it with a larger unit – you’ll have to ask them. You’d probably have to use your combined income to qualify for a mortgage that would be enough to cover the cost of the larger unit, and this would mean that your monthly expenses would increase because the monthly bond payment would be higher. However, note that the transaction costs of selling the smaller unit and buying a larger one (the mortgage registration costs and other fees) might be high – you’ll have to negotiate both with Calgro and your bank to see if these can be minimised. If this doesn’t work, you might have to just sit tight for a bit and make do – but as you do this, save money towards a deposit on a larger unit. Over time, I’m quite sure the bachelor units will sell – there is demand for even small property – and hopefully you’ll be able to sell the flat for more than you bought it for.

      • Annie , 05 June 2014

        Hi there, I take home round R6800 after deducts, I have 2 kids and in a long term relationship. Im currently living with my parents and I am under sequestration what the chance of one being able to buy a house or flat and also apply for a subsidy?

        • Kecia , 15 June 2014

          Hi Annie. While your income and household situation should allow you to qualify for the FLISP, you can only access it if you also access mortgage finance, and its unlikely you’ll get that if you are under sequestration. You need to resolve your debt situation first and then you can think about buying a home. In the meantime, if you can also think of saving on a regular basis, that will help you prove financial discipline when you apply to a bank for a mortgage.

  258. letta , 08 May 2014

    hi please kindly help me because me and my husband we earn jointly income of 8000 and we want to buy a house in garankuwa that cost 300000 please kindly give me full in about subdidy how does it wotk we don’t have children. but married in community of property. and I had the other agent said the bank will need life cover and what is that?for us yo get a home loan from the bank

    • Kecia , 15 June 2014

      Hi Letta – apologies for the very delayed response. At your income, you may certainly be able to buy that house with the FLISP subsidy. Have you downloaded the pamphlet? Basically, you have to put in an offer to purchase for the house that is conditional on your getting the subsidy and a mortgage bond. Then, you get the mortgage for the difference between the purchase price of the house, less the value of the subsidy. The bank will want you to have life cover on your mortgage – this means that if you or your spouse pass away while the mortgage is still outstanding, the life cover will cover the amount still owing and you won’t lose your house. You can ask your bank to explain this to you in detail.

    • Kecia , 15 June 2014

      Hi there. At your income, you probably wouldn’t be able to afford a house costing R300 000. With R8000 household income, you could qualify for about R53 000, and then another R187 000 in mortgage finance. This means that your total housing affordability is about R240 000 or so. The bank will need life cover – this is to make sure that your family doesn’t lose the house if you or your husband die before the loan is paid off.

  259. charles , 12 May 2014

    Am earning 13155 gross my question do they also count money that I get separately on my overtime every month to determine how much I qualify for subsidy and I will like where are the offices in pretoria where I can do applications.

    • Kecia , 15 June 2014

      Hi Charles. I’m sorry its taken me so long to respond. Yes, your subsidy eligibility is calculated on the basis of your total income – that is, your salary plus overtime, bonuses, etc. However, check out the pamphlet and call the NHFC directly. They have an office in Johannesburg, but you can call them too.

  260. mildred , 15 May 2014

    Hi Kercia I am one of staying Alexandra Johannesburg who applying the flat Bohlabela Alexandra they didnt answer me and Idont know where can i go or numbers for them.pls can you help me?

    • Kecia , 15 June 2014

      Hi Mildred – I’m sorry, I don’t have their numbers either. Have you tried the Johannesburg municipality?

  261. Kefilwe , 16 May 2014

    Good day,

    My name is Kefilwe. I earn +R9900.00 per month & I have registered myself under debt review last year which I will be finishing in 2016. I would like to enquire if I do qualify for that subsidy & how much.

    • Kecia , 15 June 2014

      Hi Kefilwe. In terms of your income, you should qualify for the FLISP, but in order to access it, you also have to qualify for mortgage finance. You won’t be able to get mortgage finance until you finish your debt review process. The only thing I can recommend is that you do your best to save on a monthly basis while you finalise your debt review process. This will demonstrate to the bank when you do apply for a mortgage that you have the financial discipline to manage mortgage repayments over twenty years. Good luck.

  262. Moses , 04 June 2014

    hi
    i just want to know the process of applying for low cost house that are provided by dept of housing in protea.apperantley is up to phase 8.people who are successfull are supposed to pay R400 per month for 20 yrs.i desparatley looking for a house like those.

    • Kecia , 15 June 2014

      Hi Moses. I’m afraid I don’t know about the scheme that you’re describing. Your best bet is to call the city and speak with them about the procedures to get a house in your area. Make sure you don’t give your money to just anyone – if it is an RDP house, there should be no cost. If it is a FLISP house, R400 per month sounds a little low.

  263. Khanyisile , 06 June 2014

    Hi I’m building de house myself and I earn 9500 is it possible 4 me to qualify for this subsidy

    • Kecia , 15 June 2014

      Hi there. Yes, you should be able to qualify for the subsidy, but only if you have never owned a property before, and you use the subsidy to buy the land. Then you can build the house on top of it. When you find the land to buy, follow the same procedures as if it were a house – you’ll need to buy it with the subsidy and a mortgage – and then you can build on it yourself. Take a look at the pamphlet for more information, and call the NHFC if you have any questions.

  264. Pearl , 11 June 2014

    HI My name is Pearl i am a single mother mother i earn R8.700.00 a month , i need to buy house,what is the procudure and how much will the subsidy be? if the house cost R 320.000.00 and wht if in two years i lose my Job.what is going to happen to the house.

    • Kecia , 15 June 2014

      Hi Pearl. At R8700 per month you should qualify for the FLISP subsidy – about R50 000. Then, if you have no other debt, you might be able to qualify for about R200 000, which means that you might afford a house costing about R250 000. You won’t find a new house for that price, however, so you have to look on the resale market – like an RDP house that was built more than 8 years ago. I’m afraid you won’t be able to afford a R320 000 house, however – and in fact, you can’t use the FLISP to buy a house that costs more than R300 000.

  265. Paula , 23 June 2014

    hello kercia

    im earning R2500 and my husband is self employed…and at the moment we are paying rent of R1000 were we stay and we are interested in a low income home selling for R270 000, i want to know if we qualify for a subsidy and how much will the subsidy be and how do we apply for the subsidy

    • Kecia , 24 June 2014

      Hi Paula. Your ability to buy that house is dependent on what your husband earns on a monthly basis, and whether his employment is sufficiently stable for a bank to trust that the two of you can honour 20 years of bond repayment obligations. To buy a R270 000 house with the FLISP subsidy, you’d need a combined income of about R10 000. this would give you a subsidy of about R43 000 and a bond of about R230 000 (depending on the interest rate). If your husband earns less than R7500 per month, you’re going to have to find a less expensive house to buy. This isn’t entirely impossible – there are houses available in the resale market that you should be able to afford. Good luck.

  266. Mpume , 30 June 2014

    Hi Kecia
    My questions is “can I apply for a subsidy after I have applied for a home loan to buy bank repo property and that home loan has been approved? Because subsidy can help reduce Bond Montly instalments.

    • Kecia , 20 July 2014

      Hi Mpume. If you haven’t yet taken transfer on the house, you should be able to apply for the subsidy – that is, if you satisfy all the other requirements. Your bank should help you with this.

  267. Portia , 01 July 2014

    Hello, I am Portia. I just want to find out where can i get the application forms? Is my agent or myself who should apply for me? Application should be done before or after the bank approves the bond.
    Thank you

    • Kecia , 20 July 2014

      Hi Portia. The process works like this: first you put in an offer to purchase that is conditional on you receiving the subsidy and mortgage finance. Then you take this offer to purchase with you to the bank to apply for the bond, and make your bond application conditional on you receiving the subsidy. Once the bond is approved, the bank should help you make the application to the NHFC to get the FLISP subsidy.

  268. israel , 04 July 2014

    hi,just 3 days ago after a as useful as a bucket hole agent failed me,i decided to follow up myself on my application,R10 000 salary with fluctuating commision averaging at 7k and 15,i am told that am declined yet at times i go home with R7000.already been to my stand for a house worth 239000,got calls from STD bank and lawyers to come sign hinting an amount of about 40k subsidy.do i apply again on my own or leave everythng as am really******please help.

    • Kecia , 20 July 2014

      Hi there – at your income, you should qualify for the FLISP, and the bank should help you apply for this, as part of the whole process of buying the house. Once the bank has given you in principle approval for the loan, you need to take this to the NHFC as part of your FLISP application – ask the bank to help. YOu can also call the NHFC for more information: 011-644-9800.

  269. calvin , 11 July 2014

    hello kecia

    I just want to find out about if i bought the house and already have a tittle deed and im still paying for the loan will i be qualifying for this because im still paying the loan which i took from the bank

    • Kecia , 20 July 2014

      Hi Calvin. I’m sorry but the subsidy only applies when it is part of the transaction process. You cannot apply for the subsidy in retrospect, after you have taken transfer of the house or already received the loan.

  270. Lerato , 14 July 2014

    Hi Kecia

    I am a 1st time homebuyer and im struggling to get a newley built house around johannesburg. i have found sectional title which is R260 000. so i would like you to clarify if i wont get a subsidy in this case

    regards.

    • Kecia , 18 July 2014

      Hi Lerato. You can certainly use the FLISP subsidy to get a sectional title property, and R260 000 is within the limits. The FLISP also applies both to new and resale units, so you should be fine, as long as you earn enough to afford the mortgage finance you’ll need to pay the difference between the subsidy that you get and the purchase price of the unit. Take a look at the subsidy pamphlet to understand the amount you might qualify for, and then test with the bank how much mortgage you could afford, and see if together the two give you enough to afford the house.

  271. Nomvula Mathebula , 14 July 2014

    I ‘m a woman with a disability and I want to know if you can help me build a house for me I have four kids at the moment I’m renting I’m a single parent I earn R3100 and my wish is to own a house of my own I stay in Mpumalanga and I want to know where I can get help in Mpumalanga Nelspruit surrounding.

    • Kecia , 20 July 2014

      Hi Nomvula. At your income you should qualify for an RDP subsidy – this is for households who earn less than R3500 per month – and you should also probably qualify for a disability addition, which helps make the house better to suit your particular needs. You need to contact the Mpumalanga Dept of Human Settlements to find out more – how to sign up on the waiting list, what the time frames are, etc. Their phone number is 013 766 6087 / 6675

  272. mpho , 14 July 2014

    good evening my partner earns R2500 per month i would to know if we qualify for the subsidy and how does the whole process work out because we are in need of a house

    • Kecia , 16 July 2014

      Hi there. At your income, you should qualify for the RDP Housing Subsidy, and not the FLISP. You should contact your provincial department of human settlements or your local municipality for more information and how to get onto the waiting list.

  273. lukey , 14 July 2014

    Hi, me and my wife has got a bond approval for R230,000 which is the amount of the house we have applied for. Our household income is R9200 and we want to apply for a subsidy. This is however not a new house but the seller wants to move and we got a real good deal on this property. We aslo in desperate need of this subsidy. Please help!

    • Kecia , 16 July 2014

      Hi there. At your income, and given the price of the house you want to buy, you should be able to apply for the FLISP subsidy. FLISP can be used for new or for resale, so its okay. You need to put in an “Offer to Purchase” for the house you want to buy, making it conditional on your being able to access the FLISP and the necessary mortgage finance. Then, once this document is signed by the Seller (indicating that they will sell the house to you if those conditions are met) you can send this together with your bond approval to the National Housing Finance Corporation, together with an application for the FLISP. That last process should take about 7 days for them to reach a decision. Take a look at the FLISP Pamphlet and if you have any further questions, either call the NHFC on 011-644-9800, or write back here.

  274. mandy , 15 July 2014

    Hi
    I have a two sisters living on my late parents land in tugela.They live in a wood and iron shack. Their source of income is the social grant. One of them has a son and he works and earns R3000. Does he qualify for the subsidy.

    • Kecia , 16 July 2014

      Hi Mandy. To qualify for the RDP Subsidy, the household cannot earn more than R3500 per month. However, if the household earns more than R3500 per month, but less than R15 000 per month, then they could qualify for the Finance Linked Individual Subsidy Programme (FLISP). The RDP Subsidy gives you an RDP house – but as you would know, the waiting list for this is very long and the process might take years. The FLISP subsidy is only accessible if the household ALSO gets mortgage finance at the same time, and the subsidy + mortgage are used to buy a house (new or resale) that costs less than R300 000. At the income you describe, the household might be eligible for a FLISP subsidy, but not enough to afford the mortgage they’d need to then buy a new house. Best check out the prices of RDP houses that are older than eight years and which are for sale in the neighbourhoods you’re interested in. You should be able to find something for quite a lot less than R200 000.

  275. Nomvula Mathebula , 15 July 2014

    I’m Nomvula Staying in Mpumalanga in Nelspruit surrounding and what I want to know if I can get the house subsidy because I am a disabled mother who is earning R3100.00 and I need a house at the moment I’m renting and I need something permanent. and please help me with the contacts of the offices I can go to around Nelspruit to get the subsidy.

    • Kecia , 16 July 2014

      Hi Nomvula. Yes, in terms of your income, you should qualify for the RDP housing subsidy, as well as a disability top-up. I’m not sure how the Mpumalanga Provincial Dept of Human Settlements or the Nelspruit Municipality are delivering houses, or how the waiting list works in your area. The provincial Human Settlements Department is located at No. 7 Government Boulevard, Building No. 6 & 7,Riverside Park, Extension 2, Nelspruit 1200. Their phone number is 013 766 6087 / 6675. Call them and ask them how to make the application.

  276. kazi , 17 July 2014

    Hi
    I stay in PE I’m a single mother of two I earn 3700 I want to know if I qualify for a bond and a subsidy.

    • Kecia , 20 July 2014

      Hi there. You’re at the bottom range of eligibility for the FLISP subsidy – which means you would probably be able to get something in the order of about R80 000. However, you can only get the FLISP subsidy if you also get a mortgage loan, and at your income, it is unlikely that a bank would want to give you a mortgage. You have to be able to convince the bank to give you a small mortgage: if you were to buy an RDP house that was older than 8 years, you might find something that you could afford. Take a look at property24.com – there, I saw a house Bloemendal for R100 000. The other option available in the FLISP subsidy policy is that you get a serviced stand from the municipality, which you then build on yourself. I’m afraid you’re in a bit of a difficult slot – right at the bottom of the FLISP eligibility range. Good luck

  277. Didi , 18 July 2014

    Hi Kecia

    I was reading your responses and they really helps, thank you. one of you comments that caught my attention was buying RDP house that has been build for 8 years. I earn 12500 gross and I would like to buy RDP house, can the bank approve a bond application for RDP house?

    • Kecia , 20 July 2014

      Hi there. Yes, in terms of the Housing Act, RDP houses that are older than 8 years can be sold, and they’re often very good value. However, you must make sure that the seller has a title deed in their name. The sale transaction must be done formally, with a conveyancer, who then puts the title deed into your name. The bank will take a look at the house to make sure its worth the loan amount that you apply for. Depending on where you live, the bond can be quite small, which is great because it will mean that your monthly repayments will be smaller, or better, that you can pay off the loan faster than 20 years (which means you’ll pay less in interest).

  278. annie , 18 July 2014

    I am a single parent of a nine years old boy, I’ve been on a waiting list for RDP houses since 2009 but nothing is happening, when I go to the office to check they always say the is nothing while am staying in a rented 1 small room with a boy child, every time when I have to bath he must go outside, it’s really frustrating.

    Now I found a job which pays about 4700, they say I no longer qualify for an RDP after 9 years of waiting, on the other hand the banks can’t help me cos of my little salary, whilst the FLISP say I should get someone for a joint bond to qualify, what am I supposed to do, I desperately need a home for me and my son, please it’s very depressing to bath, eat and sleep on the same space.

    • Kecia , 20 July 2014

      Oh dear – I’m so sorry. The RDP housing delivery process does take a very long time. Now that you earn R4700 you should qualify for the FLISP – that’s right. You have two options. You can either approach your municipality and ask them if they will give you a serviced stand – the subsidy policy allows for this, and no finance is involved. It would mean, though, that they would have to have a piece of land available, and you would have to build your house on top of it with no additional financial support. Your other option is to apply to the bank for a small mortgage. At your income, you could probably get a FLISP for about R78 000. If you were to buy an old RDP house – one that is older than 8 years and is available for sale – you might get it for about R120 000 or so (depends on where you live). This means that you’d only need a mortgage of about R45 000 or R50 000. The banks don’t like to give mortgages that are so small, but none of them have said that they don’t do it, so its worth a try to ask them. Check out if you can find an old RDP house for sale, and then follow the process I’ve described in these comments and blogs. Let me know how it goes.

  279. Lucia , 24 July 2014

    Hi again, I have found someone who wants to sell her RDP to me, it’s R140 000 . I don’t have the money right now so I don’t know what needs to be done in order for me to buy the house. Can I get the flisp for the house? Or the mortgage for the house? Or must I do a personal loan. Plz kindly advise as I need a reply back asap. Thanks Lucia

  280. BONGI , 25 July 2014

    Hi Kecia thank-u so much, i applied for the house last year and it was approved, and also the very same time i applied for the subsidy but the agents did not take it through, because i phoned NHFC and they told me that i can only apply through the agent, i am so stressed and confused please help. thank-u so much.

    • Kecia , 27 July 2014

      Hi Bongi. Your agent should be helping you – and indeed, the NHFC should also help you. The way the subsidy works is simple: (1) you work out how much you can afford by figuring out how much subsidy you could be eligible for and how much of a loan the bank will approve. When you add these two numbers together (they’ll be based on your income) that will give you a rough idea of the purchase price you can afford. (2) however, even if you can afford more than R300 000, that is the limit. You cannot buy a house with the FLISP subsidy for more than R300 000. This means you’ll probably need to find a house on the resale market, either through an agent, or by asking around in the neighbourhood you like, what houses are for sale. (3) once you find a house you like, you put in an offer to purchase that is conditional on you getting the subsidy and the loan. (4) if the seller accepts your offer and the conditions, you take this to your bank and apply for a mortgage, telling them you intend to apply for the subsidy as well. (5) once the bank approves your loan, they should help you submit an application to the NHFC for the FLISP subsidy. (6) when the NHFC approves your subsidy application, they pay the subsidy amount to the bank, and then the bank pays the seller for the house. You then owe the bank for the loan amount they granted you, at the terms they specified.

      What this means is that you need to contact your bank and get them to help you apply to the NHFC for the subsidy. If you don’t have an agent, then the bank should be helping you. If you still don’t get any joy, tell them to phone me.

  281. M.J. Simelane , 29 July 2014

    Hi! I need more information about FLISP, can you please call me to this number 072 468 9986 anytime.

  282. Sibusiso , 30 July 2014

    Hi

    We recently qualify for a new house bond and we were also given a Flisp subsidy . but it has come to my attention that the money was paid out but not to our bond account. attorneys now want us to pay them back R7425 which was deposited in our bond account they only received R47 175.00 but it was never deposited in our bond account ….. please see emails sent

    Good day Octavia

    We refer to the abovementioned matter.

    We confirm that the registration of your property has taken place on 9 July 2014.

    We however also confirm that there is a shortfall of R7 425.00 on the purchase price of the property which is payable by yourselves.

    The amount of the FLISP approval was R54 600.00 and of that amount we received R47 175.00 and the balance of R7425.00 was paid into your bond account.

    I therefore urge you to make the payment into our trust account at your earliest convenience and we confirm our banking details as follows :

    VAN STADEN & BOOYSEN TRUST ACCOUNT
    ABSA BANK
    ACCOUNT NUMBER : 4040 499 045
    ACB CODE : 632 005
    REFERENCE : ERF 5335 WINDMILL PARK EXTENSION 12

    Thank you.

    • Kecia , 03 August 2014

      Hi Sibusiso – this is very confusing, and in principle, shouldn’t have happened. I think you should contact ProBono.org for assistance – they provide free legal services to low income earners and they have experience with these kinds of things. They’re based in Johannesburg – give them a call and ask them what they advise. t: 011 339 6080 / http://www.probono.org.za

  283. frans , 13 August 2014

    Hie kecia

    I’m 25 and i I’ve been working for the bank as a temporal staff for 6 years now and earning R7500-R8000 per month.i would like to ask that do i qualify for the subsidy home loan?

    • Kecia , 21 August 2014

      Hello Frans. Yes, at your income, and if you’ve never owned property before, you should qualify for the FLISP which you can use with your bond to buy a house that costs less than R300 000. Take a look at the NHFC’s webpage on how the FLISP works. Since you’re working with the bank, they should be able to help you with the process. Good luck!

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