Will the extended housing subsidy in South Africa work?

February 10, 2012 by Kecia Rust | 304 Comments

President Jacob Zuma delivered his 2012 State of the Nation address in Cape Town, South Africa, last night.  In setting the scene, the President outlined the findings of Cabinet’s mid-term review of progress since 2009:

… “The mid-term review indicated steady progress in various areas such as health, education, the fight against crime, human settlements, energy, water provision, rural development and others.

However, the triple challenge of unemployment, poverty and inequality persists, despite the progress made. Africans, women and the youth continue to suffer most from this challenge.”

A key contributor to not only persistent but rising inequality in South Africa is the housing market – while our policy regime includes a substantial subsidy providing free housing for the 60% of the population with a household income of less than R3500 (about US$450) per month, another 20% of the population or so (those earning between R3500 – about R10 000) cannot afford to buy the cheapest newly built house.  This “gap” has been noted by the President before.  Two year’s ago, in his 2010 State of the Nation Address, President Zuma promised

… “A key new initiative will be to accommodate people whose salaries are too high to get government subsidies, but who earn too little to qualify for a normal bank mortgage.
We will set up a guarantee fund of R1 billion to incentivise the private banking and housing sector, to develop new products to meet this housing demand.”

We know that the guarantee fund has not yet been implemented – but discussions in Parliament have suggested developments, and last night the President announced that the scheme will start operations from April of this year, managed by the National Housing Finance Corporation.  In addition, he promised what looks like a revised “Finance Linked Individual Subsidy Programme”:

“…from April, people earning between three thousand five hundred rand and R15 000, will be able to obtain a subsidy of up to R83 000 from Provinces, to enable them to obtain housing finance from an accredited Bank.”  (That’s people earning between about US$450 – US$2000 per month, able to obtain a subsidy of up to about US$10 600)

The original FLISP has been criticised for some time for failing to understand the economics of housing affordability.  Available previously to households who earned R3500 – R7000, the amount provided (up to R54 000, or just under US$7000) was insufficient to raise their affordability sufficiently to buy the cheapest newly built house available on the market.  Do the new terms, which increase the upper income threshold and extend the value, do any better?

Assuming the new policy works as the old one did, on a sliding scale where households on the bottom end of the range get the most subsidy and those on the top end get the least, one might assume that a household earning R3550 might get the full R83 000.  With a 30% instalment to income ratio, this household could afford to pay about R1065 per month.  At the current prime rate of 9%, this would afford the household a mortgage of R118 369.38.  Add to this the housing subsidy of R83 000, and the household can afford a house of R201 369.38 (assuming they have savings to cover transfer and conveyancing fees and the other costs of moving).  In South Africa today, there is no market-based housing for sale at that price.

Cosmopolitan, a large scale developer of affordable housing, advertises a house for R245 000  on their website: this is a 40m2 structure with very basic finishes.  There is no new build available for less than this.

One of the reasons, of course, is that it costs anywhere between R100 000 and R200 000, depending on area and infrastructure, to build the government-subsidised house that is given away for free to households earning less than R3500 per month.  The government-subsidy house is also a 40m2 structure with formal services.  With such a house being given away for free, no developer or bank will risk offering a similar house on the market with a 20 year loan obligation.  By simply extending eligibility for government funding to a larger proportion of the population, the President’s announcement has not addressed the fundamental issues arising from the housing subsidy scheme. (For a very useful set of analyses that get to the heart of the problem, see the presentations given that the Financial & Fiscal Commission’s public hearings into housing finance)

Housing affordability of just over R200 000 for someone who is not eligible for a free house, however, is not something to sneeze at.  Certainly, the R83 000 subsidy is a valuable contribution to the household earning R3550 per month.  While he won’t be able to buy a new house, his affordability is perfect for the resale market – and could very usefully be used to stimulate trade of existing housing, creating the housing ladder that has been lacking for so long.  The resale market at this end of the property market, however, is full of challenges – many of which are outlined in a study recently released by the CAHF.  The President must know that the success of his promises depend hugely on a long list of other challenges also being worked out.

There is also the question of housing supply – will the new guarantee scheme, coupled with this extended housing subsidy, increase the scale of delivery?  Again, a host of issues undermining rapid housing delivery must be addressed if the President’s promises are to have any effect.

South Africa has probably the most ambitious housing subsidy policy in the world, and its success in delivering houses these past 18 years to a population previously excluded from the property market is internationally renowned, hugely respected, and the envy of many nations.  The persistence of inequality, however, is in part due to the unintended consequences of the housing subsidy policy.  It is these that must be addressed.  Simply extending the subsidy’s reach is not going to address the underlying problems.  It may well exacerbate them.

DISCUSSION THREADS

  1. Sunny , 10 February 2012

    Thank you Kecia for the thoughtfulness of your analysis. For those of us who work in this sector this seems like much of the same of what we have heard before. I sincerely hope that it will lead to more people being able to buy, also I cannot see where that stock will initially come from.

    • Chris , 15 January 2013

      Hi

      I would like to be involved with developing(design and build) affordable housing Is there any department that I can approach that will assist in identifying land available for this type of project .The package I have in mind will include on site training and empowerment of Small entrepreneurs etc.

      Thanks

      Chris

      • Kecia , 15 January 2013

        Hi Chris. I would contact the Housing Development Agency – take a look at their website on http://www.thehda.co.za/ Also try Nurcha – they finance small contractors: http://www.nurcha.co.za/

        • Emile , 17 April 2013

          Hi Kecia,
          I am an employee for the dept of health and earn a salary just less then R10000. The financial institutions don’t want to take a risk on me because of my dept that’s too much, I am renting a house for the past 3 years which I pay R3000 pm for. Will I stand a better chance one I get a subsidy from work? Could you please advise me?
          Kind. Regards.

          • Kecia , 18 April 2013

            Hi Emile – at your income you should be able to apply for the FLISP subsidy, which together with mortgage finance should enable you to afford a house costing less than R300 000. I’m not sure what you mean “because of my dept” and what that would have to do with how much you’d qualify for. Your best bet is to connect with the NHFC, the organisation managing the subsidy, and ask them for advice particular to your area. You can email them on flisp@nhfc.co.za or call them on 011-644-9800

      • Kevin , 06 April 2013

        Hi Chris

        I may be able to assist. I know of land available. Ticket price is circa R730 000 per ha and parcel size is 119ha. DFA approval in place and established market demand.

        If this is of interest please write to me.

        Kind regards

        Kevin

        • Kecia , 15 April 2013

          Thanks Chris. I’m afraid we don’t deal in land and we don’t participate in the actual delivery of housing projects. You can approach the NHFC directly, however, and they might be able to put you in touch with interested developers – call them on 011-644-9800 or email flisp@nhfc.co.za

        • Nqaba , 15 September 2013

          Hi Kevin,
          I would like to urgently chat to you about the proposition you made to Chris. Am looking for ideal land etc – if you are keen to help lets further the discussion on a private forum. Regards

        • abdul , 10 October 2013

          hi kevin have seen a post to chris land available for low cost housing development I too show interest in such projects as im a small contractor will it be possible to meet you for more info on the matter please.
          my cell no is 0835824596 or an email would also do if better for you,also would you give me your details so I can get in touch with you
          kind regards
          abdul

        • Alex Leventis , 09 May 2014

          Hi Kevin,

          I may be interested in a piece of this land if it is still available. I am currently conducting market research for a venture I am pursuing and need more accurate information for the compilation of my funding plan,

          Would it be possible for me to contact you personally, perhaps via email, to discuss this further?

          • Kecia , 15 June 2014

            Hi there. I’m afraid we don’t have any access to land or even housing for sale – we just provide advice on the FLISP subsidy and other matters regarding affordable housing finance in Africa. Still, if you have further questions, please feel free to send me an email kecia@housingfinanceafrica.org

    • Nico , 09 April 2013

      Hi love u r publications and need ur help i earn 5330 before dudiction how will i be able 2 become a first time homeowner i live in the mosselbay eara any info that can help me 2 become a home owner i work for the local munisipality have 2 children married backyarder.thanks in advance

      • Kecia , 15 April 2013

        Hello Nico. Thanks for your feedback. At your income, you should be able to qualify for the FLISP but its unlikely that you’d be able to qualify for enough mortgage finance in order to afford a R300 000 house. However, the policy does allow for municipalities to offer serviced stands to households who earn between R3500-R7000. You don’t get a house, but you get a piece of land registered in your name (you would own it) and serviced with water and sanitation. It would then be your responsibility to build your own home on it. I’m not sure if Mossel Bay is implementing this aspect of the policy however. Speak to the people in the housing department in your municipality and ask them what they’re doing – if you need me to send them the policy that I’m referring to, let me know. I’ll be happy to help.

  2. LETTIE , 23 February 2012

    Where can I apply for this subsidy? Even though ou registration went throug in Jan 2012. Will we still be able to apply?

    • Kecia , 29 February 2012

      Hello Lettie. Its not yet clear where you’ll be able to apply for the subsidy, and if it will apply retrospectively – as far as I know it will be effective from 1 April 2012. The best approach would be to approach the National Department of Human Settlements directly (www.dhs.gov.za) or your provincial department, and pose your question to them. When I get more news, I’ll post it.

      • mojalefa , 10 July 2012

        Hi kecia,if you meet the set requirement s da any form of garantee as ther might be many indivdls aplying 4 subsidies,if not how s da selection done as to who goes 1st.do we have pple who r subsidisad alreay?thn you

        • Kecia , 11 July 2012

          I’m not sure how the waiting list works – there is clearly much more demand than there are housing projects, so I’m sure many people are queuing up. It would be best if you called the National Housing Finance Corporation and asked them how it works. 011-644-9800

      • Tas , 09 January 2013

        Hi Kecia,

        do you know if I would be able to get one of these subsidies? my income is R7500 and I live with my partner,
        we recently purchased a house and I thought that these subsidies apply to those earning – 15000 combined?

        Any assistance would be appreciated

        • Kecia , 10 January 2013

          Hi Tas. Well done on finding a house you can afford! The FLISP subsidy is for households who earn between R3501 and R15 000, so in principle, you should qualify, but at that income, it would be about R10 000. However, you can’t use the subsidy retrospectively – it is only to be accessed at the point of purchase.

        • Chris Theko , 31 January 2014

          Hi I’m currently earning R9600 per month
          I don’t qualify for bond house and when I apply for RDp house
          They I get overpayed so still I don’t qualify
          How must I do to get a house

          • Kecia , 31 January 2014

            Chris, you are in what’s called the gap market: you earn too much to qualify for an RDP house, and too little to afford even the cheapest newly built house available on the market. However, at your income you may qualify for the Finance Linked Individual Subsidy Programme (FLISP), which would give you some money to contribute towards a deposit for a house on the resale market. If you have no other debt, you could then qualify for a mortgage bond for the difference. Take a look at the FLISP subsidy pamphlet – download here – and then look for a house in the area where you want to live, that might be in the R150 000 price range. Good luck.

  3. nozipho ngubane , 25 February 2012

    I’m a married mother of two children who has a house hold income of R5400.00 and would like to know how much do I qualify for a subsidy and if so will the house be build around Soweto.

    • Kecia , 29 February 2012

      Hello Nozipho. According to the announcement, you will qualify for an amount somewhere in the region of R83 000 – R10 000. I would guess that at your income you’d qualify for about R70 000. The details have not yet been made public, however. You will be able to use this together with a mortgage loan (or possibly a pension-backed or unsecured personal loan – I’m not sure yet) to purchase either a new or existing house or to build a house on a piece of land you can buy or already may own. You need to lead this process, however. I would recommend that you look for the house or land that you want and think of all your options in terms of how you will finance it, and then approach either the national Department of Human Settlements or your provincial department. When I get more news on the specific rules and procedures, I’ll post these.

  4. thuraya , 02 March 2012

    Does this subsidy only apply to people on the housing waiting list or to everyone hoping to buy a house

    • Kecia , 13 March 2012

      Hi there. While the formal policy has not yet been released, I would suspect that everyone who fulfills the criteria would be eligible to apply for the subsidy. People on the waiting list are generally those who earn a household income of less than R3500 per month. This new subsidy is targeted at households earning between R3500 – R15 000 per month. Given this, I don’t expect you would need to be on the housing waiting list in order to qualify. I’ve asked the National Department of Human Settlements for more information – as soon as I have this I’ll let you know. Kecia

      • Chantal , 14 May 2012

        Hi Kecia, there is a new project in Vahalla Park, Cape Town, I am on the data base for almost 22 years, I received a letter for the meeting, my name was also on the list, the big question I earn R4750, do I qualify with the new scheme, like you said will take place the 1 April, one of the officials at the meeting said it was not implemented yet, we should just wait and see….Regards
        Chantal

        • Kecia , 15 May 2012

          Hi Chantal. I think there are a lot of people in your situation. As I understand it, your eligibility for the RDP housing subsidy is based on your current income, and not the income you had when you joined the list 22 years ago. This would mean, I think, that you wouldn’t qualify for the RDP house. But check with your municipal officials just to be sure. You do qualify for the new FLISP subsidy – and perhaps (I don’t know) Cape Town would feel themselves obligated to prioritise your application given your long wait for an RDP house. I would call the city and ask them how to deal with this issue. You may want to call the NHFC 011-644-9800 and ask them too. Good luck!

  5. Luthando Wotshela , 08 March 2012

    How is this going to work? Will people need to apply through the bank or where?

    • Kecia , 13 March 2012

      Hi Luthando. I’m afraid I haven’t got any more information. I suspect your bank should have information on how to access the subsidy, but there is no information on the National Department of Human Settlements’ website. I’ve asked them for some more information and will post this as soon as I have it. You can also call their helpline: 0800 1(house) 46873

  6. ronel , 09 March 2012

    hi Kecia can you tel me for how much will i qulify, my in come is R4900 WITH OUT DEDUCTIONS

  7. nobathembu , 10 March 2012

    hi
    I am currently working in FET college and getting paid by government ( on persal). i wnat to know where can i apply for this subsidy and i am currently earning a gross of R12115 with net of (R7200) and would like to know how much can i qualify for as i am in the process of buying a house

    • Kecia , 13 March 2012

      Hello. I’ve asked the National Department of Human Settlements for some more information on the new subsidy policy – nothing has been published on their website unfortunately. What we’ll be waiting for is income tables that show how much subsidy a person can qualify for based on their income. Please remember that it will be on a sliding scale – that the more a person earns the less subsidy they’ll get, as I described in my blog. As soon as I learn more I’ll post another blog.

  8. AM , 11 March 2012

    I work as an education therapist (i.e occupational therapist) in a school and am employed by the WCED – my gross monthly income is currently approx R13000. This amount is supposed to increase sometime during 2012 to R15000 due to OSD. Do I qualify for a housing subsidy when purchasing a property, and what amount would it be?

    • Kecia , 13 March 2012

      Hello. I haven’t yet seen the formal policy so I can’t give you a precise answer. As far as I can gather, the subsidy will be introduced on 1 April 2012, so your income at that date would be relevant. Please remember that it will be on a sliding scale: so the more you earn the less you’ll get, as I described in my blog. This means that you would probably not be eligible for more than R10 000 given your current income. As soon as I learn more, I’ll post another blog. Kecia

  9. Mohammed , 16 March 2012

    Hi Kecia

    I would like to know if I qualify for this subsidy if i got an approved home loan from the bank and im a first time home owner. I work for the City currently earning 10000 with deductions can i apply for this subsidy and I am i allowed to apply for it see that im a first time home owner? Regards

  10. ismail , 27 March 2012

    Hi there

    i would like to where can i apply for a housing subsidy,
    my gross income is R9100.00 , and please provide any contact numbers as well

    • Kecia , 03 April 2012

      Hello Ismail. You apply for the Finance Linked Individual Subsidy Programme (called the FLISP subsidy) at the National Housing Finance Corporation. They will tell you that you need to find a house first (a new house, costing less than R300 000), and to then apply to the bank for a mortgage, which will then facilitate your application for the subsidy. Check out my blog on the subject – it should be up by tomorrow. In the meantime, you can look at the subsidy amounts for which you qualify – I’ve loaded the table here http://www.housingfinanceafrica.org/document/new-finance-linked-individual-subsidy-programme-values-effective-1-april-2012/ Kecia

  11. Princess , 27 March 2012

    Earning 6500.00 before deduction. How much subsidy will i qualify for? I’m realy looking for a house to buy.

  12. nomusa , 27 March 2012

    Hi Kecia
    I woul like to know how we go know that it has been started I know you said by the 1 april but I also need to know how much house can I buy if I earn R4300 before deduction and how can I apply for the bond, I really need a house I have 5 kids living in a 2 rooms house at uMlazi (Durban) please help us

    thanks

    • Kecia , 03 April 2012

      Hello Nomusa. Yes, the new subsidy amounts for the Finance Linked Individual Subsidy Programme (also known as FLISP) came into effect on the weekend. Unfortunately there’s not much information on either the National Housing Finance Corporation website, or the National Department of Human Settlements Website. I’ve just posted the subsidy tables that show you how much you qualify for – at R4300 you should be able to apply for about R82,275. You can look at the tables here http://www.housingfinanceafrica.org/document/new-finance-linked-individual-subsidy-programme-values-effective-1-april-2012/ To access this subsidy, you need to find a new house for sale that costs less than R300 000, then apply to a bank for a mortgage to buy this. The bank will then help you with your subsidy application. I’ll post more as I hear about it. Kecia

  13. Joyce SA , 28 March 2012

    I am Single mother of two kids i would love to buy a house but am not qualified i went to cosmo city in Northgate/honeydew the house of 40m2 two bed room it cost R302500 . they need someone who earn R9000 upwards the am not qualified i Earn R7454.00 . then i need to do i qualified for subsidy, or they are going to build the house in Cosmo northgate/honeydew because they told me they are busy building the last which is ext 10.

    • Kecia , 03 April 2012

      Dear Joyce, according to the policy as I understand it, a house costing R302500 will not qualify for the new Finance Linked Individual Subsidy Programme (FLISP) – this is because the maximum amount that is allowable to purchase is a new, R300 000 house. At R7454, you should be able to apply for a subsidy of R60 675, but this would only be to buy a house that costs less than R300 000. The best bet for you is to check out the different developers and ask them what they’re planning to build – some are revising their projects to fit within the R300 000 limitation. Check out my blog on the subject – should be up in a day or so. In the meantime, you can look at the subsidy tables here: http://www.housingfinanceafrica.org/document/new-finance-linked-individual-subsidy-programme-values-effective-1-april-2012/ Kecia

  14. faldelah , 28 March 2012

    Hi I would like to know more about the housing subsidy as I would like to apply.please tell me where do I apply

    • Kecia , 03 April 2012

      Dear Faldelah. The formal rules haven’t been published yet, but according to a very friendly official at the National Department of Human Settlements who explained this to me, this is what I understand: 1. First you need to find a new house to buy, that costs less than R300 000. 2. Once you’ve found the house, you need to apply to the bank for a mortgage to buy the house. 3. They’ll then determine the mortgage size that you qualify for, and will help you apply for the subsidy. They submit the application to the National Housing Finance Corporation. I’m working on a blog on the topic – it should be up in a day or so. Kecia

  15. Anna Cheou , 30 March 2012

    I work as a dometic worker and applied for RDP housing in 2003. I earn R3800pm and believe I can now apply for a housing subsidy. Please could you advise me how to go about this.
    Many thanks

  16. Phindi , 30 March 2012

    Hi, I work in department of health my gross income is 9600 and my net is 6960.
    My question is the bank is already approve me Mid January 2012 I am still qualify for the subsidy. Beccause the bank approve me before 1 April 2012

  17. Zoleka , 02 April 2012

    I would like to know if one can go to any bank to get the info regarding the subsidy. may you please advise as soon as you get the information or when it gets published please.

    • Kecia , 03 April 2012

      Hello Zoleka. I am working on a blog about the subsidy and will post it in the next day or so. In the meantime, I’ve loaded the subsidy tables, which show how much you may qualify for, here: http://www.housingfinanceafrica.org/document/new-finance-linked-individual-subsidy-programme-values-effective-1-april-2012/ You need to first find a house that you can afford, and which costs less than R300 000. Once you’ve found the house (it must be part of a new project), you can go to the bank to apply for a mortgage loan to buy the house. The bank will then help you apply to the National Housing Finance Corporation for the subsidy. Kecia

  18. Elias Hlabola , 03 April 2012

    Please update me on further developments

  19. cleo , 03 April 2012

    Hi Kecia,
    I applied for a bond and the bond was approved in February 2012, i earn less than R15 000…My net Income is R7 300

    Im the 1st time owner

    Will the bank be able to restructure my bond after i have applied for the subsidy??

    please help.

    ps: where can i access ur blog

    • Kecia , 09 April 2012

      Hello Cleo. If you’ve already purchased the house then I’m afraid you won’t be able to access the subsidy. The subsidy is only available to people who buy their home after 1 April 2012. If, however, you’ve had your bond approved but not yet bought the house, then yes, you can approach your bank and ask them to help you access the subsidy. To access the subsidy, you need to buy a new house, that’s in a new housing project, which costs less than R300 000. My more recent blog on the subject is available here http://www.housingfinanceafrica.org/blog/how-will-south-africas-new-flisp-subsidy-work/

      • ben , 08 January 2013

        HI Kecia I’m curently stay in a house that I pay rent of R1000/m the owner is my brother and he is willing to sell for 75000. My pay is 5700/m but the problem is it is an excisting house. There no way that I can excess this subsidy or what can I do?

  20. Phindi , 04 April 2012

    Morning the bank approved me mid January 2012 but the house is 370 000 that means am not qualify for the subsidy because I bought the house that is more than 300 000. Working for Department of Health my gross salary is 9600

    • Kecia , 10 May 2012

      Hi Phindi. Yes, you’re correct: in order to access the FLISP subsidy you need to buy a house that costs less than R300 000 and which is included as part of an NHFC-approved FLISP pilot project. Give the NHFC a call and see if there any such projects in your area and if they have housing available, because with your income, you should be eligible to apply. Their number is 011-644-9800

  21. azonwabe , 05 April 2012

    Can i have the list of subsidie that are found here in South africa. Plzz I need thism information to do my reaseach , complitly

  22. ROMI , 10 April 2012

    Hi, does this work on both the spouses income? is this a must? can my hubby apply on his salary only?

    • Kecia , 16 April 2012

      Hi Romi. I’m not entirely sure. Although the policy came into effect on 1 April 2012, the policy rules and regulations don’t appear to be available on the web. In principle, however, most subsidy programmes are designed on the basis of a household income. I know that feels unfair, but the government can only afford to subsidise so many people – and with the RDP and new FLISP subsidies combined (based on household income) it is already making subsidies available to about 85% of the population.

  23. zikhona , 11 April 2012

    Hello I earn R3500 where must I go for the house

    • Kecia , 16 April 2012

      Good question! Your best bet will be to call your provincial Department of Housing, or your municipality. They will tell you if you qualify for an RDP subsidy house, and about how the waiting list in your area works. The waiting list is long, however. Although the government has built upwards of 3 million units, the backlog sits at about 2 million. This will take some time…

  24. Mel , 12 April 2012

    Hi I earn R7500.00 and my fiance R7200.00, we would like to purchase a plot and plan but the prices of the houses range from R599 -700K , does this mean because we have a joint income of 15000.00 that we will only get R10000.00? or how does it work? Also if we do apply for a subsidy, does this mean we can only purchase a house in a certain pricing bracket?

    • Kecia , 16 April 2012

      Hello Mel. You’re right: the FLISP subsidy is for households earning less than R15000, and at that top level of the income bracket you’d get about R10 000. Even though you might be able to afford more, you can only use the subsidy to buy a house for less than R300 000. So, you have a choice: either you go for the R10 000 (or so) subsidy that you would be eligible for, and buy a house that costs less than R300 000, or you forgo the subsidy and buy a house you can afford which may cost more than R300 000.

  25. Natalia , 18 April 2012

    18/04/2012

    Hi, I just wanted to find out how do I go about making an application.

    kind regards
    Natalia

    • Kecia , 20 April 2012

      Hi Natalia. You need to first find the house that you want to buy, make sure its included in the NHFC’s pilot programmes for each of the nine provinces (you can call them on 011-644-9800), and then apply to the bank for a loan, telling them you also want a subsidy. Once the bank approves you as eligible for a loan, they’ll help you prepare the subsidy application. The subsidy application will then be submitted to the NHFC who will check with the government that you’ve never received a housing subsidy before. If the province agrees that you’re eligible for the subsidy, they’ll approve it and then the NHFC will pay this amount to the bank, who will then pay that, together with your loan, to the developer so you can buy your house. Its very complicated, but your bank should be able to help you with this.

  26. Fay , 24 April 2012

    Hi my father wants to sell his house for R250 000 I am unemployed only my husband works we have 3 kids My husbands Nett income is about R7300 after deductions Will we qualify for a subsidy!!!

    • Kecia , 27 April 2012

      Hi there. At this stage, the FLISP subsidy can only be used to buy a NEW house in a development approved by the NHFC. However, the government has said that they would like to extend the scheme to resale market properties, existing houses, in the future. If your father can wait, you might be able to access the subsidy when this policy change is made. You are in the right income range. Its just that in phasing in the programme, the government has started with new houses first, and only one pilot project per province.

  27. Phindile , 25 April 2012

    Hi Kecia,

    I earn R5200.00 per month. There are houses starting from R300,000 that are going to build in my area I have the pamphlet. Will I get the government subsidy. Im a first time home buyer. And do I call the agents or go straight to the bank?

    • Kecia , 27 April 2012

      Hi Phindile. You should call the NHFC to find out if the project in your area is approved as a pilot project in this subsidy programme. Their number is 011-644-9800. At R5200 per month, you could access a subsidy of about R76 000. If you don’t have any other debt, you might then be able to access a mortgage loan of about R145 000. This brings your overall housing affordability to about R221 000. This means you will need savings to afford a house of R300 000. You should start saving now, whatever the NHFC says, so that you’re ready when the time is right to buy.

  28. Junia , 26 April 2012

    Kecia

    Pls advise i have applied for homeloan and they said i qualify for 190000, so its not a brand new house i dnt qualify for a brand new house, did i still gonna get flisp subsidy bcos its not a new house and, where can i go to apply for flisp subsidy?

    • Kecia , 27 April 2012

      Hi Junia. I’m sorry but at this stage you wouldn’t be able to access the FLISP subsidy because the house is not new. At the moment, as they’re just starting the programme, they’re only including NEW houses in NHFC-approved projects. Think about whether you need the subsidy, however. In the short term, there will be limited subsidies available – only one project per province. If you’ve found a house that you can afford now, and if its the right house for your purposes, it may be worth your while to go with that. Perhaps you should call the NHFC and ask them their advice: 011-644-9800. They can tell you how long you might have to wait until the subsidy becomes available for the resale market.

  29. Ray , 26 April 2012

    I live in port elizabeth & i would like to apply for a subsidy & a bank loan. Where can i go to find out some more information. An estate agent told me that its pointless applying for the subsidy as it takes for ever to be approved etc. Need help & advice asap. thanx

    • Kecia , 27 April 2012

      Hello Ray. You can download the official policy from this site: http://www.housingfinanceafrica.org/document/finance-linked-individual-subsidy-programme-flisp-policy-as-of-1-april-2012/ The first thing you need to do is find out how much you could qualify for, and if this, together with the mortgage you could qualify for is enough to buy a new house. If all of this is fine, then you need to call the NHFC to find out if they’ve got an approved project in the PE area. Their number is 011-644-9800. They should give you the name of the developer and then you can check out the house. Once you’re happy that you’ve found something you want to buy, you can apply for a loan from the bank and then they’ll help you with your application to the NHFC for the subsidy. Maybe you should show your estate agent the policy document as well. I think the more people demand efficiency from the NHFC and the government, the faster the programme will go. Good luck!

  30. Ryan , 27 April 2012

    Hi Kecia, I’m currently studying housing development and policy at UCT. In the article you said,”The persistence of inequality, however, is in part due to the unintended consequences of the housing subsidy policy. It is these that must be addressed.” What do you mean by unintended consequences? Also have you got any views on how the proposed R1b MDI scheme will be able address the current housing problem? Any help would be much appreciated.

    • Kecia , 27 April 2012

      Hi Ryan. I think the policy didn’t intend for there to be a gap housing market. Rather, it was expected that by building housing for households earning below R3500 per month, housing affordability limitations would be addressed and the private sector would kick in and build for those earning more than R3500. Over the course of the implementation of South Africa’s housing subsidy – the last 18 years – the cost of the subsidised housing product has risen dramatically. In part, this has had to do with inflationary pressures on land and building materials, but it is also a function of an increasing standard. While the 1994 policy adopted a breadth over depth approach (everyone gets something) the practice has been more depth over breadth (some get a lot). To build an RDP house today costs anywhere between R100 000 – R200 000, depending on the area and infrastructure circumstance. Well, a person earning R4000 can only access a mortgage loan of about R116 000 – that is if he or she achieves an interest rate of 11% and has no other credit outstanding. If that house is being given away for free to people earning less than R3500, the bank would be very worried about providing finance to someone earning more than that to buy it with a 20 year loan obligation, because they’d worry that the person would eventually get frustrated. Think about it. A household earning R4000 would need to pay R1200 per month to service a R116 000 per loan. This would make their net income R2800 – less than the person earning R3500 who got the house for free. The banks see this as too risky, so if they’re not going to finance the loan, then the builders won’t offer the house for sale. This is not something that the policy expected. I’ve just uploaded an old document I wrote that summarised this issue: http://www.housingfinanceafrica.org/document/a-short-explanation-of-the-gap-market/. On the R1 billion guarantee scheme – I’m looking to hear news of it! Not much has been said. Certainly government will have to be careful about the potential moral hazard that a government-sponsored guarantee scheme creates. Also, we’re currently doing research that shows that the mortgage loan performance in the affordable market is actually quite good – slightly better than the so-called ‘normal’ market. We’ll post that as soon as its ready – in about a month. Watch this space.

  31. Emily mohammed Shameem , 04 May 2012

    I’m married and earn 5500 per month.I’ve got 2 children.were can I apply.do I qualify for a house because I don’t have a home I’m renting.

    • Kecia , 10 May 2012

      Hello Emily. In principle, you should qualify for the FLISP subsidy, if you’ve never owned before. At R5500, you should be eligible for a subsidy of R74 175, if you also qualify for mortgage finance and use these two sums together to buy a new house costing less than R300 000. You can ask the NHFC if they have any housing projects in your area that have houses that you can buy with this programme. Call them on 077-644-9800

  32. Junia , 07 May 2012

    Kecia

    If you say i will not qualify for a flisp if i buy a old house i wont get a subsidy, because i dnt even qualify for a R190 000 house that is not new, so it means i wont have a Rdp and i dont qualify for a bond house that is cost R300 000, where must i go to because i live here in S.A, please advise me because i dont have another option, FNB decline me with R190 000. And i need a place to stay, i did apply for a RDP house in 1996 in Tsakane even now i dont have a house i apply again in 2007 zivese still, they build the houses but when you go to our offices they said we must go to Alberton dept housing, when you go to Alberton they say they recieve the approved list from our local goverment, so where can i get the right anwer from.

    • Kecia , 10 May 2012

      Hi Junia. In order to qualify for an RDP house, your household income needs to be less than R3500 per month. If you applied for the RDP house before but now earn more than R3500, I don’t think you qualify. To access the FLISP subsidy, you need to earn between R3500-R15000 per month, and you need to buy a new house that’s less than R300 000. The FLISP project is still in its pilot stages as they try and work the system out.

      At this stage, if you want to buy a house now and if you can qualify for some mortgage finance – even if its less than R190 000 – you might be able to buy an old RDP house that someone is selling. Some older RDP houses may be in this price range. 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. There are quite a few RDP houses that are now older than 8 years, so they’re available for sale if the owners want to sell them. 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.

  33. Mary , 08 May 2012

    I m working temporarly and i have registeredfor rdp house so will i qualify?

    • Kecia , 10 May 2012

      Hi Mary. To be eligible for an RDP housing subsidy, you have to have a family income of less than R3500 per month, have dependents, and have never owned a house before. The best idea for you is to contact your local municipality, or even call the national housing helpline: 0800 701 701 and ask them how to apply in your local area.

  34. Vuyo , 10 May 2012

    Hi there I would like to apply for this very much , I m Cape town where would I get the forms ? Do I apply for this before bank loan? Or you can do both the same time ? Pls reply

    • Kecia , 15 May 2012

      Hi Vuyo. The NHFC is the administering agent for the subsidy so you should call them first (011-644-9800). As I understand it, you need to first find a house that costs less than R300 000 in a new housing development that’s been approved by the NHFC as being part of this programme. Once you’ve found this, you need to apply for a mortgage, and tell the bank you also want to apply for the subsidy. If you qualify for a mortgage the bank will then help you apply for the subsidy. In principle, the NHFC should be able to help you get all your ducks in a row.

  35. Mary , 14 May 2012

    I have allready registed but how long must i wait for this rdp house here in gauteng(tshwane)

    • Kecia , 15 May 2012

      Oh dear, Mary, I’m sorry. The waiting list is extremely long, and in the past year we’ve seen a real slump in housing delivery. The only thing I can advise is that you contact Tshwane and ask them what their delivery plans are. Good luck.

  36. londiwe , 14 May 2012

    Hi Kecia,

    Great article and very useful. However on your article you mention that the FLISP would be added to the principle loan approved by the bank thus increase the bond amount. According to the policy it is envisage that the FLISP would be used to reduce the principal amount. So from your ealier example “At the current prime rate of 9%, this would afford the household a mortgage of R118 369.38. It should be “minus” the subsidy amount instead of ADD to this the housing subsidy of R83 000. This would significantly reduce the bond repayments thus making the house affordable.

    • Kecia , 15 May 2012

      Thanks Londiwe. I think both perspectives are true. With the overarching limitation that the house must be less than R300 000, the FLISP can either increase the amount a household can afford or decrease the loan repayments that a household has to pay. So, for a household earning R7000 per month, their mortgage loan eligibility might be in the region of R203 000. This is insufficient to buy a new house in our current market. With the addition of the FLISP subsidy, however, they might be able to afford a house of about R267 000, which is more likely to be available. In this case, the FLISP is added to the loan eligibility to make the person earning R7000 able to afford more. For someone earning R10 000, they could already afford a mortgage possibly of about R290 000. At that income, they’d be eligible to apply for a R43 800 FLISP subsidy, but the house they’d be allowed to buy couldn’t cost more than R300 000. So, for them, the FLISP would have the effect of reducing the loan amount they’d have to take out, which would reduce their monthly payments and improve their disposable income.

  37. Felicia , 14 May 2012

    Hi there my weekly income is R800 per week and i would like to know if i qualify. also i would like to know how do i make to buy a house with the home loan and sibsidy

    urgent reply please

    • Kecia , 15 May 2012

      Hello Felicia. At R800/week, your monthly income is about R3200 which would make you eligible to apply for an RDP subsidy. In some ways, this might put you in a better position that someone earning above R3500 and eligible for the FLISP subsidy, because you can apply for an individual subsidy and attach this to a loan without the same kinds of restrictions applied by the FLISP. Most importantly, you could use it to buy an existing house on the resale market, and these are often less expensive than existing houses. However, the individual subsidy instrument seems to work better in some provinces than others. I suggest you call your municipality or provincial government and tell them you’d like to apply for an individual subsidy. Ask them if you can add finance to this and then use the combined money to purchase your house – let me know how it goes. I’d be interested to hear what they tell you.

  38. Felicia , 15 May 2012

    Hi thank you so much for your reply. I spoke to the municipality and they said my income per month must be less then R3500 to qualify for a RDP subsidy and its R88000.00. I want to buy a bank houses but must put a deposit down that i dont have. The bank must give me a letter to say i am buying the house. so i can combine the subsidy

    Its my first time buying a house and i dont know where to start. also we got only 3 months to move out, im a backyarder

  39. phozisa , 16 May 2012

    Hi there have recently bought a new house mortgage bond of R330000 earning R10000 before deductions my spouse R7500.Bank will start June 4 deducting their money do we qualify for this new subsidy

    • Kecia , 16 May 2012

      Hello Phozisa. I’m afraid you don’t qualify for the subsidy. The FLISP subsidy is targeted at households with a combined income of less than R15 000 per month (before deductions) and is only available at this stage for the purchase of new housing that costs less than R300 000 and is in an NHFC-approved project. Your situation doesn’t appear to meet these criteria. Congratulations on your new house however! I wish you a lot of happiness in it.

  40. Sibongile , 16 May 2012

    I am earning 6000 before deductions i would like to fnd out if the subsidy is it active know or not.
    and the where about of getting one.

    • Kecia , 23 May 2012

      Hi Sibongile – the subsidy is active – its been in place officially since 1 April 2012. It is being implemented slowly, however, with only one pilot project per province for starters. At an income of R6000 per month, you should be eligible, if you can also access mortgage finance. To find out more, read through some of the comments on this blog, and then call the NHFC on 011-644-9800 to find out if there’s a pilot project in your area to which you can apply.

  41. Busie , 17 May 2012

    Hi there i’m earning about R5800 a month i would like to know if i qualify, i also would like to know how do i buy a house with the home loan and subsidy,I’m in PE URGENT PZL REPLY

    • Kecia , 23 May 2012

      Hi Busie. Yes you should qualify for the subsidy at your income level. The subsidy amounts are listed on this website – go to http://www.housingfinanceafrica.org/document/finance-linked-individual-subsidy-programme-flisp-policy-as-of-1-april-2012/ and download that document. The subsidy eligibility tables are right at the back. But remember, to get the subsidy you have to fulfill certain other conditions: (1) the house you buy has to be new, has to cost less than R300 000, and has to be in a project that has been approved by the NHFC; (2) you have to also qualify for enough mortgage loan finance that, when added to the subsidy for which you qualify, equals the purchase price of the house. The NHFC is the administrator of this scheme, but your bank should also be able to give you some information. If you find a house that you want to buy, and its new and costs less than R300 000, ask the developer if its included in the NHFC pilot programme. If its not, then perhaps tell the developer to call the NHFC and see what can be done. Their number is 011-644-9800

  42. Felicia , 18 May 2012

    Hi Kecia i saw a repossessed house for R60,000 and i realy want it can i go for the susidy and ask them to put it on the house that i want, and if i must give deposit first on the house i would

    Please respond as soonest
    regards
    Felicia

    • Kecia , 23 May 2012

      Hi Felicia. That’s great! The repossessed market is a very good place to look for good value and affordable housing. You said you earn less than R3500, right? Then you should be able to take the individual subsidy (its about R88 000) and use it to buy the repossessed house. Unfortunately, however, I don’t think many municipalities or provinces has systems in place to enable such a transaction to happy smoothly, and the bank is much happier then to sell to a customer with the ready cash. I think you should go to the provincial department of human settlements in your area, with all the papers and details about this particular house that you want to buy, and ask them for advice on how to solve your problem. I think you’ll have to be pushy – this is not really a scenario that the policy has planned for – but if you make this happen, you might also make it easier for other people to take such opportunities in the housing market. (If you earn more than R3500, you won’t be able to access the FLISP at this time – its only for buyers of new housing in approved projects.) Please keep me posted on your progress.

  43. Hendrik , 22 May 2012

    Hi Kecia

    My situation is similar like Felicia although I already bought a house but it is not register on my name yet please confirm if I also qualify the house that I bought was R55000. My in come is R8000.00

    • Kecia , 23 May 2012

      Hi Hendrik. I’m afraid the subsidy is at this stage only available to people who buy new housing costing less than R300 000 in any one of the approved pilot projects for the scheme. I know it must be terribly frustrating to have bought the house before the subsidy – but count yourself lucky. Even if you’d bought it now, the house wouldn’t qualify for the scheme. Where did you find a house for R55 000 any way? That’s a pretty fabulous price. Please make sure you persist with making transfer happen – its extremely important. Your title deed is representative of your ownership and is the only way you can prove legally, that the house is yours. This becomes especially important for your family members who may inherit the home later. I wish you much happiness in your home. Kecia

      • Hendrik , 23 May 2012

        Hi Kecia

        Thanks for your supply yes everybody said I m lucky but I still need to improved because it is a 3 room house very small and I did call one of the numbers and they give me the same reply but know I know where I stand there is no subsidy for me

  44. zinhle , 22 May 2012

    Hi dear,please can you assist me.I called the 011644 9800 number today.The
    Consultant explain that his subsidy for now is for the GAP property
    at the value on R300000.max and doesn’t subsides all networks or property
    My problem is I live in kzn and the concultant advise that Kzn currently hasn’t submitted their list ofGap property for Kzn .therefore
    The project hasn’t not started functioning in Kzn.pls can you advise me where I can look to get an update of the kzn housing gap property and if it has started and the properties have been listed for viewing.I current earn R7700 and would like to be a first time buyer.

    • Kecia , 23 May 2012

      Dear Zinhle. Your story highlights the problem with this new, pilot approach through which the new FLISP subsidy is being implemented. It is only available in pilot projects approved by the NHFC. I would recommend that you call your Provincial Department of Human Settlements, or your local Municipality, and speak with them. Ask them if and when they plan to submit projects to the NHFC for inclusion in the FLISP programme and explain to them how important this is to you. In time, the subsidy may be extended to the resale market, so you’ll then be able to access the subsidy to buy any house on the market within the cost parameters defined by the policy (costing less than R300 000). At the moment, however, the new housing route is the only way to go. Call your province or city and ask them what they’re doing to help. Good luck!

  45. Elon , 05 June 2012

    Hi Kecia

    Can you tell me why the government has placed all the subsidies attached to a bond on hold and why it’s taking so long for this to be paid out?
    I understand that there are about 3000 applications currently that you are dealing with but does this really have to take so long?

    Regards

    • Kecia , 11 June 2012

      Hi Elon. I’m afraid I can’t answer this question. I suspect, perhaps, that government was unprepared for the demand that would be expressed, and they wanted to test out the approach with a few pilots before they committed fully to it. We have to appreciate that by introducing the FLISP subsidy, government has increased the percentage of the population eligible to apply for a subsidy to about 85%. This is a huge percentage, an enormous undertaking, and it will take some time for the system to become fluid. The only thing I can suggest is to continue to press the NHFC to respond – call them on 011-644-9800 and ask them to let you know as soon as housing becomes available. In the meantime, the more you can save now, the more you’ll have to put as a downpayment when you do find a house, and this will reduce your monthly payment obligations.

  46. Nokuthula , 05 June 2012

    hi Kecia,need to apply my husband is earnirng R2500 monthly before deductions an im not working.Im in port elizaberth were can i go and apply?

    • Kecia , 11 June 2012

      Hi Nokuhtula. It sounds as though you could apply for an RDP subsidy. You should go to the PE municipality and ask them what the procedure in your area is. Good luck!

  47. Lulamile , 08 June 2012

    Hi Kecia

    I’ve been to our local DHS offices to enquire. The response I got was this subsidy will only be used for the propeties that gov. is building like in Walmer in PE or in Southernwood in EL and not to buy an existing property.is that true?

    • Kecia , 11 June 2012

      Hi Lulamile. Yes, that’s true for now. The policy does say that in future the subsidy may be applied towards existing properties but right now its only for new houses built as part of an NHFC-approved project. For me, this is the main problem with the subsidy. I’m hoping that once the government gets past this pilot phase they’ll revise the approach to include the resale market. If they do this, it will suddenly become relevant for many more people.

    • ben , 09 January 2013

      Hi kecia I’m in an exciting house pay rent of R800/m it is my brothers house. It was a munisipality house of my mothers which he buy 8years ago from her.He is willing to sell for 75000 and my earnings is 5700 but according to the site I don’t qualify because it is an excisting house. Is there no other way to get subsidy thanks

      • Kecia , 10 January 2013

        Hi Ben. Thanks for your two comments. I’m afraid the subsidy does not yet apply to existing properties – it can only be used for new properties. The policy may change over time, however. So, if your brother will allow you, perhaps you could save towards the purchase and wait for the policy to change. You can call the NHFC to clarify what their thoughts are – they are managing the policy. Their number is 011-644-9800

  48. Maghdi , 17 June 2012

    Hi Kecia

    There is a project that was started by the Department of Human Settllements in Eerste River in 2009. It consisted of ‘mixed’ housing – RDP and bank bonded houses. The criteria for accessing the the subsidy was based on R3500 – R7000. This resulted that most of the houses are still vacant.
    Will this new FLISP be applicable to this development seeing that it is not a private developement?

    • Kecia , 17 June 2012

      I’m not sure how to answer this – I would expect that Eerste River is not included in the new FLISP, but I could be wrong. I’ll see if I can find out an answer and I’ll post the response here. In the meantime, you can call the NHFC (011-644-9800), or call the Western Cape Department of Human Settlements, and ask them.

    • Kecia , 19 June 2012

      Hi Maghdi. I’ve checked with the WC Province and with Cape Town. If the property descriptions are Erf 105 and 107 Eerste River, it is a Department-managed project. I am told that in this case the new FLISP is definitely applicable. You can contact the WC Dept of Human Settlements (Chief Director: Human Settlements Planning) for more information. Their switchboard number is 021 483 2342 . Good luck!

  49. gabriel , 18 June 2012

    Hi i earn 5100, wen can i apply en were must i go.one more thing is this really heppening thanx

    • Kecia , 19 June 2012

      Hi Gabriel. In principle, yes, this subsidy is really happening. However, its only happening at this stage on a pilot basis and so this means that there won’t be much supply. The best place to get information is from the National Housing Finance Corporation – they’re the ones administering the subsidy scheme. You can call them on 011-644-9800.

  50. Romona , 20 June 2012

    Hi Kercia ,I’m a single mother 27 and earn 3250 basic + comm ,the bank approved me of R120 000.00 for a home loan and i cant seem to find a house at that price. Do i qualify for a housing subsidy and if so how much and how do i apply. Please assist i am in kwa zulu natal Durban.

    • Kecia , 25 June 2012

      Hi Romona. At the income you say you earn, you should be eligible for either an RDP subsidy, or pretty close to the maximum of the FLISP subsidy – so, around R80 000. If you were to add this amount to the R120 000 mortgage for which you say you qualify, you could possibly afford a house for about R200 000. However, in the current arrangements, you need to use the FLISP subsidy to buy a new house, and there aren’t any available at that price. While you might be able to afford a house on the resale market, you can’t use the FLISP subsidy to buy it. You could also qualify for a serviced stand and then use your homeloan to build a house on it – that’s a lot of work and a complicated process, but it could be done. I suggest you call your local municipality or the KZN Department of Human Settlements and ask them to help you consider your options. You can also call the NHFC 011-644-9800. In the meantime, you should try and save as much as possible so you have some extra money to put down for the house or to pay the legal fees involved. Good luck!

  51. BABY DEE , 21 June 2012

    Hi Kercia…..I want to build my children a home but I have debts that can add up to R30-000 at the Moment and I know I qualify as I earn R5700 per Month so what advice can give me

    • olga , 22 June 2012

      Hi Baby Dee, My name is Olga and i work with Kecia. Yes, you do qualify for the subsidy provided that you have never received a house before. The amount of the subsidy you would be eligible for would be R74 175. Provided that you qualify for mortgage finance, you will then be able to use these two sums of money to buy a New house (only applies to a new house and has to be in a project that has been approved by the NHFC) that costs less than R300 000. You can call the NHFC on 011-644-9800 to ask about housing projects that are available in your area. I hope this helps.

    • Kecia , 23 June 2012

      Hi BabyDee. The most important thing for you to do in the short term is to resolve your debts. Your debts will stand in the way of you getting a mortgage, and you need to qualify for a mortgage loan in order to access the FLISP subsidy. Pay off as much as you can each month, so that by the time you are ready to buy a house, your debts will be resolved and you can afford the debt that your mortgage will create.

  52. Shanna , 25 June 2012

    Hi Kecia,
    Would you be able to advise on the current size of the current RDP and affordable housing segments in South Africa?

    • Kecia , 26 June 2012

      Hi Shanna. I’ve just loaded a document that sets all of this out: http://www.housingfinanceafrica.org/document/perspectives-on-south-africas-affordable-housing-market-current-trends-and-issues/ Broadly speaking (because our data is drawn from the Income & Expenditure Survey of 2005/06 escalated to 2010), just under 60% of households earn less than R3500 per month; a further 30% or so earn between R3500 – R16 000, and just over 10% earn over R16 000 per month. This means that the FLISP target market is somewhere about 25% of the total population. See slide 6 in the presentation.

      • Shanna , 27 June 2012

        Hi Kecia, Thanks very much! I’ve just browsed through the document above and this will help tremendously! Thank you!

        • Kecia , 28 June 2012

          Its a pleasure Shanna. I just noticed one slide, however, that was out of date – I’ve updated this now so you can download the newer version.

  53. zee , 27 June 2012

    hi do u know of any websites to check for houses less than 300.000

    • Kecia , 27 June 2012

      Hi – I’m afraid there isn’t a single website. For new houses that are approved by the NHFC to be included in the FLISP subsidy programme, call the NHFC directly: 011-644-9800. For houses on the resale market, there isn’t any specific website, but you can check out our Affordable Land + Housing Data Centre on http://www.alhdc.org.za. You have to register, but its free, and then you can explore the kinds of prices being realised in the resale market in different neighbourhoods in South Africa.

  54. khotso , 03 July 2012

    thank you very much with the information, what i want to know is if the area which i reside in doesnt have any pilot projets approved by NHFC can i be able then to qualify for the subsidy elsewhere around the the province where houses are available..i currentl earn R12 200 before deductions

    • Kecia , 09 July 2012

      Hi Khotso. I’m afraid the NHFC has to answer that question. I’m sure you can apply to be part of an NHFC-project irrespective of where you live. In the long run I hope they develop the policy to include the purchase of housing also on the resale market.

  55. Buyelwa , 05 July 2012

    Hi – I also need a house, i don’t qualify for RDP houses because i earn more than R3500.00 and i also don’t qualify for subsidy. I earn R4700.00, I need to know if there’s any houses that’s gonna be like N2 Gateway, I applied for a house in 2006 and when i went to Civic Centre, they told me my name is still on the list,
    Are they first gonna take the people from the list or what’s gonna happen, bcs i still live from the backyard..

    • Kecia , 09 July 2012

      Hi Buyelwa. I’m not familiar with the specific details in your area and how the housing waiting list works – for that you have to go back to your municipality and ask them. With a household income of R4700 you would not qualify for the RDP house. However, if you find a new house for less than R300 000 and can access enough mortgage finance to pay for it together with a subsidy, you might qualify for the Finance Linked Individual Subsidy Programme. To get more information on that, you can call the National Housing Finance Corporation on 011 644 9800 – they’re the ones administering the scheme. Its unlikely that you’ll qualify for enough mortgage to buy the house however, even with the subsidy. You might be able to qualify for the FLISP serviced stand – people who earn between R3501-R7000 can apply for a serviced stand instead of the FLISP subsidy. Then, you’ll have to save or raise finance to build your own house on that property. Again, call the NHFC for more information.

  56. Omphemetsemabe , 20 July 2012

    this is good without info you will never know

  57. Nyiko , 25 July 2012

    Hi I’m 25 years old single i earn R9500 before deductions do i qualify?

    • Kecia , 01 August 2012

      Nyiko, in terms of your income, you fall in the target market, however in order to access the subsidy you have to have dependents – people who depend on you financially like children or parents – or you have to be married or living with a partner.

  58. Xoliswa , 25 July 2012

    Hi i need a house urgently I’m 22 years old living with my child i earn R8500 and im single so do i qualify

    • Kecia , 26 July 2012

      Hello Xoliswa. Households earning less than R15000 per month are eligible to apply for the FLISP subsidy – so that applies to you. To get it though, you also have to qualify for mortgage finance. Your first step is to find a house in a new project, costing less than R300 000. Then, if you earn R8500 per month, you should be able to apply for a R53 000 subsidy. To buy the R300 000 house, therefore, you’d need to qualify for a mortgage of about R247 000. All these things have to go together. Call the National Housing Finance Corporation – they’re the managers of the subsidy scheme and should be able to give you all the info and tell you where to find the house. Their number is 011-644-9800.

    • Kecia , 01 August 2012

      Hi Xoliswa. With your income, and because you have a financial dependent, you should qualify, however this also depends on your being able to access mortgage finance for the remaining cost of the house after the subsidy. Call the National Housing Finance Corporation to see if there’s a pilot project in your area : 011-644-9800

  59. Thokozile , 26 July 2012

    Hi Kecia,

    I think this is very nice. People outside here we need subsidy. I am over 50 years and I do not have a house of my own. How can I go about applying?

    • Kecia , 01 August 2012

      Hi Thokozile. If you earn less than R3500 per month and have financial dependents, then you can apply for an RDP house. The best place to go and enquire would be your local municipality. If you earn more than R3500 but less than R15 000 and have financial dependents, you could qualify for the finance linked subsidy. In this case, however, you can only get the subsidy if you also access loan finance to pay the balance of the purchase price. The NHFC should be able to explain everything to you – they’re the ones responsible for administering the programme. Their number is 011-644-9800

  60. fikisile , 11 August 2012

    Hi Kecia. My name is Fiksile.I earn R9500 after deductions, I live in Durban. I noticed that there is a Cornubia project that will be started by the Ethekwini municipality for new houses, will it be a goo idea for me to apply as soon as possible.

    • Kecia , 12 August 2012

      Hello Fikisile. Yes, its a very good idea to apply as soon as possible, because the waiting list can be very long and the approvals process can also take a long time. I’m not sure if the Cornubia project is one of the ones that the NHFC is approving. You should call them – 011-644-9800. They’ll let you know if the houses in that project can be financed with the FLISP plus a mortgage. I hope it works for you!

  61. angela Hangwani Munyai , 13 August 2012

    Hi my name is Angela I earn R6000 and i would also like to apply for a house. What documents do i need to qualify and how long does it take for ones subsidy to be approved cause i need a house urgently as im paying more money for rent. Please assist

    • Kecia , 21 August 2012

      Hi Angela. With a R6000 income, you should be able to qualify for the Finance Linked Individual Subsidy Programme, as long as you’ve never received a subsidy before, have dependents, and can qualify for the mortgage you’ll need to buy the property. The FLISP subsidy currently only applies to houses bought in projects approved by the National Housing Finance Corporation, and they’re the administrators of the scheme. Call them on 011-644-9800 and they’ll tell you what documentation you require and where you might find a house. The process is taking very long, however. There aren’t enough approved projects for the number of people who would like to participate. Hopefully this will change soon. You can discuss the timeframes with the NHFC as well.

    • Jan Dlamini , 23 August 2012

      earning 6000rands and need subsidy to buy a house

      • Kecia , 23 August 2012

        You can contact the National Housing Finance Corporation for more information: 011-644-9800. They’re the administrator for the scheme. At R6000 per month, you should be eligible to apply but there are other criteria as well so check with the NHFC.

  62. Leteacha , 14 August 2012

    Hi kecia i’m unemploy an only my husband is working an he pays R2000.00 per month without deduction do i quilify for house and do i have to make a loan to get a subsidie an does it have to be paid back

    • Kecia , 21 August 2012

      Hi there. If your household income (the sum of your and your husband’s income) is less than R3500 per month, you should qualify for an RDP subsidy. This subsidy fully covers the cost of the RDP house. You don’t need a loan to access it, and you don’t have to pay it back. The downside is that there is a long queue. Your best approach would be to call your local municipality and ask them how to put your name on the waiting list, and also how long it might take. In some municipalities, you can apply for an individual subsidy – this is about R88 000 or so, and can be used to buy a house on the resale market rather than waiting for a new house. Ask your municipality if this is available – as I said, its only in some places.

  63. Nomusa , 15 August 2012

    Hi

    I earn R12000 how much do i qualify for if i purchase a house worth R300.000

  64. Nomvula , 29 August 2012

    May you please give me information regarding the RDP houses waiting list.I registered in 1998 till now no house

    • Kecia , 31 August 2012

      Hi Nomvula. I’m sorry I can’t give you information regarding the RDP housing waiting list – all I can say is that your situation is not unique. I recommend you take your receipt that proves you registered in 1998 and visit your local authority. Call first to find out what office to go to – it should be the housing department there. They’ll then tell you how they’re dealing with the waiting list. I’m sorry you’ve had to wait so long. There are so many people on the list, this is the case for many people.

  65. caroline , 29 August 2012

    hi my husband er r6000 and i am currently not working,can we qualify for the subsidy/what should we do?

    • Kecia , 31 August 2012

      Hello Caroline. With a household income of R6000 per month you should qualify for the FLISP subsidy. Best call the National Housing Finance Corporation (NHFC), as they’re responsible for administering the subsidy. Their number is 011-644-9800. Getting the subsidy is not so easy though – it has to be used to buy a new house costing less than R300 000 in a project that is approved by the NHFC. There aren’t so many of these available, and in some provinces there are no projects yet. You also have to be eligible for mortgage finance to pay the difference in the house price that the subsidy won’t cover. Call the NHFC and they should explain everything, and also tell you what’s available in your area.

  66. Maskanyane Petrus Letooane , 06 September 2012

    Hi.i am Saki i want to buy house. i work at thaba-nchu at a special school called bartimea it follows under government

    • Kecia , 06 September 2012

      Saki, if you and the other people in your household together earn less than R15 000 per month, then you should be able to apply for a subsidy under the Finance Linked Individual Subsidy Programme. This would give you some money towards the cost of a house, and then you’d have to get a mortgage to help you further. However you buy the house, you must make sure that it is legally registered in your name – that is, your name must be on the title deed. To give you more specific advice, however, I need more information from you.

  67. Marco Dias , 12 September 2012

    I’m a property developer and i have been saying for years that the government should create a fund which will loan money to first time home buyers (certain criteria have to be met i.e. max age, never owned land, irrespective of income level, but a max purchase price of a home say R700,000) this fund will loan the money on the normal credit criteria of affordability, instalment to income no more than 30% and the 100% loan will be granted at an interest rate of 2% over 30 years. The effect is that a person who earns R5000 can qualify for a loan from this fund for an amount of R 400,000 which will enable the purchase of an entry level home. The private market will be able to provide at this level and this will stimulate demand and enable the people to start creating assets. The rental market will come into play as well as 1st time home buyer can stay at home and purchase an entry level home on a buy to let scenario and thereby creating an asset for them selves for later in life. A culture of repayment is also created in this scenario, this is much better than just giving a subsidy away with out a prospect of repayment.

    So what i’m saying is that the subsidy should be given in the way of a discounted interest rate, which will increase the borrowing capacity.

    Regards

    Marco

  68. roxy , 14 September 2012

    Hi I bought a house two years ago, do I qualify for the subsidy?

    • Kecia , 15 September 2012

      Hi Roxy. I’m afraid you don’t. The subsidy isn’t retrospective. Its only for people who are becoming first-time homebuyers now, using the subsidy for the purchase.

  69. Patrick , 18 September 2012

    Hello, I am a guy who is earning R8100 as a gross. I am looking for a house in Gauteng, so how much subsidy do i qualify, and how do i apply for that subsidy. I cannot afford to pay R3200 or more as a result of my other expenses.

    Thanks in advance

    • Kecia , 21 September 2012

      Hi Patrick. Its great that you are already clear about your affordability. At your income, and if you’ve never owned property before, you should be able to qualify for about R56 000. Then, at R8000 per month, you should qualify for a mortgage loan of about R232 000 – and this would only involve a monthly repayment of about R2400. The FLISP policy says that in order to get the subsidy you can’t buy a house for more than R300 000, and it has to be new and in a project approved by the National Housing Finance Corporation. Call the NHFC (011-644-9800) and ask them how to get onto the waiting list for a house in an approved project that is being built in your area. It may take some time – I know there are delays in the housing construction process for these houses – but keep on them to make sure you’re included in the queue. Your income and affordability is exactly the bracket that this subsidy policy should work for.

  70. Bongi , 20 September 2012

    Hi Kecia

    I need to know who to contact concerning the housing subsidy, I’m earning the salary of R4700 pm. I have two kids, What is required for me to qualify for housing subsidy. Thank You

    • Kecia , 21 September 2012

      Hi Bongi. The administrator of the Finance Linked Individual Subsidy Programme is the National Housing Finance Corporation. You can reach the on 011-644-9800. Tell them you’re interested in the FLISP Subsidy. At your income, if you can also afford mortgage finance (which must go with this subsidy to buy a new house) you should be able to qualify for the subsidy. Alternatively, there is a provision in the policy that says if you can’t afford mortgage finance, then you can get a serviced stand for free, and build incrementally on this land. NHFC should be able to explain this to you. Good luck.

  71. thabiso , 28 September 2012

    hi,i earn r11000 gross can i apply for a stand or land using subsidy instead of a house

    • Kecia , 29 September 2012

      Hi Thabiso. I’m afraid not – the policy says you can only access the serviced stand if you earn between R3501 – R7000 household income per month. If you earn more than that, you access the finance-linked subsidy. If you earn R11 000, and if you satisfy the other criteria (you have to also qualify for a mortgage for the rest of the purchase price), then you could qualify for about R36 375.

  72. thando , 03 October 2012

    greetings kecia i am earning 9800 per month and i am mother of two i need help i want to buy a house and get a subsidy,there is some one who is selling a house for R200000 how much can i get from your dept for subsidy.

    • Kecia , 05 October 2012

      Hi Thando. At your income, yes you should certainly qualify for the FLISP subsidy. However, it does not yet apply to the purchase of existing housing. The house you buy has to be new, costing less than R300 000, and in a project that has been approved by the NHFC. And you have to also qualify for mortgage finance to be able to buy it. Also know – we don’t give out the subsidy. We’re just an NGO that’s trying to share information about how the subsidy works. The subsidy is from government, and is administered by the National Housing Finance Corporation. You can call them on 011-644-9800 for more information.

  73. Sibas , 11 October 2012

    Hi, presently i own a stand with unfinished house. I earn R7200, i’m really interested, will i qaulify if i apply even when i own a property. Last question, does the NHFC have a website or email address, or physical address where they can be contacted in case number busy?

    • Kecia , 11 October 2012

      Hello Sibas, I’m so sorry but you don’t qualify for a subsidy if you already own property. You can clarify this with the NHFC – if their number is busy, you can visit their website http://www.nhfc.org.za or email info@nhfc.co.za However, I’m impressed with how far you’ve gotten. I wish you all the best with your housing process.

  74. Moegamat , 21 October 2012

    Hi I’m from cape town and would like to know where do I go to apply for house subsity and what documentation do I need from green barcoded I.D ens,,, please anyone ?

    • Kecia , 24 October 2012

      Hi Moegamat – yes, you do need an ID document as well as some other documentation. There are two places you can call for information: the Cape Town municipality – call their Human Settlements Department – or the National Housing Finance Corporation which is administering the FLISP subsidy. Their number is 011-644-9800

  75. bernie , 08 November 2012

    Will I qualify for subsidy if my gross salary is R6500 and must I buy a new house to qualify for subsidy?

    • Kecia , 08 November 2012

      Yes and yes. The FLISP subsidy is for households earning R3500 – R15 000 per month, and it must be used at this stage to buy a new house costing less than R300 000, in a project approved by the NHFC.

  76. Teboho , 11 November 2012

    Kecia
    I am based in the Free State -Bethlehem and we are eargerly awaiting the the finalisation of the Flisp from Human Settlement Department.We currently have a Company and our main focus is to target the “affordable housing market” so commonly referred to as the Gap market.The reality of the matter is that a huge chunk of people who are earning above the subsudy market but mostlty redlined by the Banks for mortgage Finance are heavily indebted through unsecured loans from mico lendersand and this is a huge challenge for them to enter the market as firsttime buyers.All the leading Banks are now being challenged by Capital Bank in unsecured loans because of the opportunities for growth in this market. My question to you Kecia is given the spirilling indebteness of this target group in the Gap market and despite thier qualification for Flisp will this not lead to a bubble in this market ?. I am very optimistic about the good intentions Goverment is doing to address this anomally by extending subsidy to this target market but my major concern is the affordability given the rising scale of unsecured lending by micro lenders and big Banks entecing people in this market..Your response to this major concern will assist our Company to develop appropriate strategies as Developers in this market.

    Teboho

    • Kecia , 16 November 2012

      Hello Teboho. Thank you very much for this thoughtful observation. You’re right – the affordability challenge in the gap market is exacerbated by high levels of indebtedness. Because the FLISP is tied to mortgage finance, only people who qualify for a mortgage of the required amount (i.e. who are not already over-indebted) will be able to access the FLISP. While this means that the FLISP won’t create a bubble in the market, it also means that your target market is smaller. Only households who earn less than R15 000 per month AND who qualify for mortgage credit can access the subsidy. Those who are over-indebted will be excluded. In your strategic approach to this market, it may be worth considering a number of options. Of course you would seek to build the R300 000 house for those households who can afford the subsidy+mortgage option to pay for it – this will be households earning about R7500-R15000 per month and who do not have much other debt. In addition to this, however, you may wish to develop a much cheaper housing option for households who cannot otherwise qualify. Can you develop a house for R200 000? Can you develop one for less than that? What would such a structure look like? In your market study, you may wish to explore if your target market would accept the size and finishes consequences of such a price… there is also a clause in the FLISP subsidy that allows households between R3500 – R7000 to access a serviced stand from the municipality. In getting the serviced stand, they agree to forgo any further subsidy. Perhaps this is a market in which you could operate? I don’t know of any municipalities that have explored this option yet so they might also welcome some support. We’re busy developing a tool to help cities and developers identify investment opportunities in specific locations – the basics of it are on http://www.alhdc.org.za but we’ve also developed a more sophisticated platform. I’d love to hear your further thinking on this. Please let me know if you need any other information.

  77. joy , 19 November 2012

    Which banks I can visit

    • Kecia , 19 November 2012

      Hello Joy. You can visit any bank. Different banks have different criteria, so its best to shop around and see which best suits your needs. If you’re applying for the FLISP subsidy, then call the NHFC first and ask them about the criteria and the banks that are working with them. Their number is 011-644-9800.

  78. kgomotso , 01 December 2012

    if i spot a new house that i hav in mind less than 300000,applied for a mortage at a bank,wil i qualify for a subsidy and wil the bank b able to proces my application if i earn 11000 after deduction when my credit record is gud.

    • Kecia , 07 January 2013

      Hi Kgomotso – Broadly, you’re correct. However, the new house has to have been approved by the NHFC. They have approved a series of housing projects for inclusion in the programme. When you do spot that house, call them and check if its included in the ones they’ve approved. Or you can call them directly for a list of projects in your area – though at this stage its likely not to be too many.

  79. salomie , 06 December 2012

    Hi
    I do appreciate the offer of the subsidy but guys it helps to a limit,getting a house for 300000 is impossible,we deserve the right to a property that is a home for a family,and not just for the sake of a subsidy,a 1 bedroom flat is not suitable and those are the only affordable for the value of 300000 and below,while many of us would like a home that is 2 bedroom,parking space etc,after all we are still paying interest rate,where as it will go up,but not our salary…..zuma needs to extend the subsidy to get a more affordable home.

    • Kecia , 07 January 2013

      Hi Salomie. You’re right – the subsidy doesn’t go all the way that one would like. There are certainly a lot of ways in which we could improve the functioning of the policy, but I don’t think extending the subsidy is a viable solution. Our housing backlog has been estimated at over 2 million households. The government simply cannot afford to build full houses at the standard that you describe, for that many people. We’ve been advocating rather that government should provide at least partial support that households can then supplement to the extent of their own affordability. Only by limiting its per-household investment can government begin to hope reaching a wider population and addressing the long waiting list. These questions are not easily answered, however. Indeed, the Financial and Fiscal Commission is looking into this very question – you can visit: http://www.ffc.co.za/index.php/media-a-events-interactive/public-hearings/housing-finance.html

  80. Zwelethu , 06 January 2013

    Hi Kecia, I have a wife and 2 kids jointly earning R14400, I’m on ITC with a low credit score though paying them up religiously to recover. I’m renting a flat for R4200pm because it’s convenient to where we work since it awkward for public transport, Banks are rejecting us for Home loans and we need a House for our kids surely we can afford a reasonable bond and then get ourselves a car to travel to work hassle free.

    How can the Human Settlement Dept. Assist.

    • Kecia , 07 January 2013

      Hello Zwelethu. At your income, and given what you pay for rent, you should be able to access a bond – however, remember that when a bank gives you a bond it is betting on your ability to repay the loan for twenty years, and so it is necessarily more careful than a landlord might be. Do carry on with your plan to address your low credit score. That will help. At R14 400 per month, the amount you’d get from the FLISP is about R14 500, which will help, but you’d still then need to be able to service a loan of about R285 000, which would require a monthly payment of about R3000. There are not so many FLISP houses available for purchase however. Your best bet is to call the NHFC for more information: 011-644-9800 or see their pamphlet on http://www.nhfc.co.za/files/FLISP_Brochure.pdf

  81. Bronwen , 16 January 2013

    Hi Kecia
    I read all the questions and answers and also would like to receive updates on the following question:
    Where in Port Elizabeth do they have newly built houses selling for R300 000? Can you possibly help as i do not know where to look or find these houses.
    Thanx and God bless
    Bronwen

    • Kecia , 05 February 2013

      Hi Bronwen. The National Housing Finance Corporation administers the FLISP subsidy. They’re responsible for approving housing projects to be included in the programme, and for evaluating applications from individuals. Call them – they should be able to tell you if there are any projects yet in PE that are included in the FLISP programme. Their number is 011-644-9800.

  82. Sarona , 24 January 2013

    I have been on the waiting list since March 1997 and everytime I go to the Department of housing to see if there is a house I am told that the Department will call me. I must not go there if they have not called me but since 1997 what should I do. I am from Eldorado Park , divorced and I have 3 children. I have literally rented all over my furniture is broken from all the moving.

    • Kecia , 05 February 2013

      Sarona, I can only imagine how frustrated you must be! I don’t know what to say, other than that you’re not alone – there are quite a number of people who have been on the waiting list for over 10 years. Have you got a slip that proves your registration for the subsidy in 1997? Have you taken this to your municipal office and asked them what to do? (Is it possible you accessed a subsidy when you were still married? They are usually registered in the names of both spouses. If that’s the case, you wouldn’t qualify anymore… you would have to access the value of your half of the property from your ex-husband). Good luck.

      • Sarona , 05 February 2013

        Hi Keziah

        When I applied for the RDP house I was already divorced. And yes, I do have my slip called a C Form and another one called New demand housing database. But every time I go to the Department of housing I am told not to come there if I was not called.I will go to the municipality in Braamfontein to see what options they give me.

        • Kecia , 06 February 2013

          Hi Sarona. I’d be interested to hear what the municipality says – will you let me know? I’m sorry you’ve had to wait so long. Good luck.

  83. Lorenzia , 04 February 2013

    Hi am a single mother of 29 year with two kids am living at the back of my mothers yard my income per month is R4860 +Other income that the work is giving us R1075 and after deduction i only get out R4800 i only want to no if i will qualify for a RDP house because i cant not aford to rent a place or a flat department and also to take a loan at the bank please help me

    • Kecia , 05 February 2013

      Lorenzia, at your income you cannot qualify for an RDP house – to qualify you would need to have a household income of less than R3500 per month. You could qualify for a FLISP (Finance Linked Individual Subsidy Programme) subsidy, but because the FLISP works together with mortgage finance, you would also have to qualify for a bond. At your income, it is unlikely you’d be able to manage a bond, and certainly not enough to buy even the cheapest newly built house on the market, 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.

  84. kecia , 07 February 2013

    Hi I’m my name is jill and I recently received a letter from CCC that I’m a potential benificiary for the RDP house. My question will I qualify if I earn more the 3500 but less than 5000. I’m a single mom of 2 kids.

    • Kecia , 08 February 2013

      Hi Jill. I’m not sure what CCC is, but in order to qualify for an RDP house, your household income has to be less than R3500 per month. At your income, you would be eligible rather for a Finance Linked Individual Subsidy Programme (FLISP) subsidy – and in this case you would qualify for the free serviced stand option (you can read some of the other comments to find out more about this). I say this, but perhaps check with your municipality: if you applied for the RDP house when your income was below R3500, I’m not sure how they’d approach your situation now.

  85. regina , 07 February 2013

    hi i have already aplied for a house that is R260 000.00 and I am earning less than R15 000. I am staying on it. I want to know if it will be posible for me to be subsidised because I do meet the requirement needed to be subsidised but I hev applied for the house last year so I’m not sure if I can qualify and how can I apply for this subsidy cause I really need it.

    • Kecia , 08 February 2013

      Regina, I’m afraid the subsidy only can be used on new houses that are part of projects that have been approved by the NHFC. If you haven’t yet bought the house (because the subsidy doesn’t apply retrospectively) call the NHFC and ask them if the house can be approved by them – their number is 011-644-9800. I’m surprised though: where did you find a new house that costs R260 000? That’s probably the cheapest newly-built house in the country!

  86. SHANTAL RAMNANAN , 14 February 2013

    Hi i need to know wre do i go to apply for the cornobia house as i will be a first time home owner.

    Awaiting a response asap.

    Regards,

    Shantal Ramnanan

    • Kecia , 20 February 2013

      Hi Shantal. I don’t know much about the Cornubia housing development, but you can look at their website: http://www.cornubia.co.za/ If you earn less than R15 000 per month, you may qualify for a FLISP subsidy. To find out more about that, contact the NHFC on 011-644-9800.

  87. DAPHNEY MMOTA , 15 February 2013

    Hi Kecia
    My name is Daphney .
    I would like to know about the RDP thats worth R100 000. I can buy an RDP HOUSE IF I HAVE R100 000 in my pocket form the NHFC.
    Thanks

    • Kecia , 20 February 2013

      Hi Daphney. RDP houses are part of government’s “Reconstruction and Development Programme” which was implemented in 1994, and then revised under the “Breaking New Ground” (BNG) policy in 2004. They are given for free to qualifying beneficiaries who earn a household income of less than R3500 per month. Some are worth about R100 000, and some are worth even more, but they are given by the government to qualifying beneficiaries for free, and then cannot be sold for eight years. The Finance Linked Individual Subsidy Programme is for households who earn between R3500 – R15000 per month, and this provides a subsidy to be used towards your deposit for a mortgage loan, to buy a new house that costs less than R300 000 and is in a project that has been approved by the NHFC. At this stage, you cannot use the FLISP subsidy to buy an existing house – you have to buy a new one. And the most you could get, depending on your income, is R87 000, not R100 000.

  88. Kay , 18 February 2013

    Hi Kecia,
    I was listening to the president’s state of the nations address 2013, he said that this subsidy is still underway. When will it start because it has been a year now, and when you call the NHFC they are just not helping, or their number is engaged. Do you perhaps know people who have already gotten their houses using this subsidy. I mean its really sickening to call & call and theres no progress. My question is, is this subsidy working at the moment or not? if not, when will it start and is there a waiting list in the mean time?
    Thank you Kecia..

    • Kecia , 20 February 2013

      Hello Kay – great comment. You’re right… the FLISP programme is being implemented very slowly indeed. In fairness, the housing process takes a very long time, and it seems that when the President announced the scheme in his last State of the Nation address, last year, it was only then that the NHFC started to identify housing projects that could be part of the programme. The President says that so far, R70 million has been invested in the programme. On average, I’d estimate that beneficiaries are accessing subsidies of about R50 000 each. If you divide this into the R70 million, you get 1400 beneficiaries – and this is across 8 projects, so an average of 175 per project, and there’s one project in each province. So, to answer your question: the subsidy programme is getting slowly into gear and I should think that the momentum will now start to pick up. I’m afraid you have to contact the NHFC to get onto their waiting list, but I’ll also try and find you a better link of who to speak to so that the communication is more directly And, while you wait, it would be a great idea to save as much as possible, so that you have a good nest egg that you can use to reduce the mortgage that you’ll have to get.

  89. Sizakele , 20 February 2013

    Me and my fiance between us earn 11000, what is the first thing we should do to apply?

    • Kecia , 20 February 2013

      Hello Sizakele. You’re in a good position to qualify for the FLISP – especially if you don’t have any other debt. You should do two thing: first, contact the NHFC and establish with them your eligibility and your interest in participating. Also, ask them what developments are happening in your province or area. You can call them on 011-644-9800. Then, go to your bank and see if they can pre-qualify you. Tell them that you want to apply for the FLISP subsidy to buy a new house in an approved development for less than R300 000. They’ll then tell you how much of a mortgage you’ll qualify for. The NHFC then manages the application process.

  90. Mandla Ngwenya , 21 February 2013

    I want to know that i received a subsidy concerning my house application made recently. Becaue the bank approved the application, now how can i verify that the goverment has assisted me with the subsidy mention by our President.Iam happy that it was reapeted on the 2nd National adress by the President.Iam in the bracked of (R3000-R15000) per month.

    • Kecia , 22 February 2013

      Dear Mandla, I am so happy that you wrote to report that you have received a FLISP subsidy! That is excellent news. So often we only think of the problems with a policy, its slow implementation and that it isn’t doing enough. Your comment reminds us that it is working for some people. I wish you all the best in your new home – much happiness and satisfaction, and comfort for your family. Please keep us all posted on your experiences in your home. Well done!

  91. ROSEANNE , 25 February 2013

    Hi Please could you let me know how to apply for the subsidy and where to go. My income is R4000pm and my partner’s is around R3000pm combined R7000pm. Thanks

    • Kecia , 26 February 2013

      Hi Roseanne. With your household income of R7000 per month, you would be eligible to apply for the Finance Linked Individual Subsidy Programme. The National Housing Finance Corporation administers that programme, so they’re the ones to call – 011-644-9800. However, you’re in the gap that the policy struggles to address: it may be that you cannot qualify for the mortgage finance you’d require to buy a house that is part of the programme. If this is the case, you might be able to apply for the serviced stand – this is available to households who earn R3500 – R7000, so you’re right on the threshold. Call the NHFC and see what they say, and then come back here if you have any other questions.

  92. Tezz , 26 February 2013

    Hi kecia i would like to know if i can apply for a house since i bought one before but i sold it due to that i had stoped working and i was very ill and i recovered,so now im fit to buy a house again also im at R7770 a month

    • Kecia , 26 February 2013

      Hi there. I’m so sorry but you can only apply for the subsidy if you have never owned a property before. They can tell, because the deeds registry will show that you owned a house before. But maybe you should call the NHFC and see what they say – 011-644-9800. I’m glad you’re recovered now.

  93. mpho , 04 April 2013

    hi kecia i am residing in cape town and have been renting for the past 10 yrs, i applied for the rdp and was told that i earn too much because i earn R7589.00 before deduction, i went to the agent and they told me that i earn too little! i called nhfc on 011-6449800 and they gave me 021-4833977 that phone just rings nobody picks it up.

    • Kecia , 15 April 2013

      Hi Mpho – yes, at R7589 you are right on the margins of affordability. With the FLISP subsidy, however, you might be able to make it, especially if you have or can generate some savings. Send the NHFC an email and ask for the email address of the CT office. Their email is flisp@nhfc.co.za. Another programme in Cape Town, is to use your FLISP eligiblity to access a serviced plot instead of a house. Then, you can access either a mortgage or housing microfinance to build your home incrementally on the plot. Its more complicated, but can be more affordable, and I believe Cape Town has implemented a process to make this option possible. Contact the CT municipality and ask them for more information.

  94. Mavis Maelane , 22 April 2013

    Hi i am earning R3000 and i need a house where must i go.

    • Kecia , 25 April 2013

      Hi Mavis – if you have dependents and have never owned a house before, you should be able to apply for an RDP housing subsidy. You should contact either your provincial department, or your municipality and ask them about the process in your area. It does take quite long, so start soon. Good luck.

  95. sma , 24 April 2013

    hi there if i earn more than R3500 a contract worker and blacklisted do i qualify for an rdp

    • Kecia , 25 April 2013

      Hi there. Because you earn more than R3500 per month, you would not qualify for an RDP. The FLISP subsidy only works, however, if you link it with mortgage finance – and while you are blacklisted you can’t access this. You have two options: first, you need to sort out your credit situation, pay back your debt and clear your blacklisting. Once that’s solved, you might be able to apply for the FLISP and access mortgage finance. Second, you could also apply for a serviced stand – there is a clause in the policy that says if you can’t access mortgage finance you can get a plot of land with services (water & sanitation) for free, and then you become responsible for building your own house on that land, without help from the government. That part of the policy is only being implemented in some municipalities however – you should call your municipality and see if that’s an option for you where you live.

  96. michelle , 10 May 2013

    hi i would like to know more on how to apply for a gap housing subsidy i live in the durban area.thnx

    • Kecia , 16 May 2013

      Hi Michelle – take a look at the blog I’ve just written on how the subsidy has been extended to include houses purchased in the resale market. At the bottom of the blog there are links to new documents provided by the NHFC on how to go about applying for the subsidy, whether you want to buy a new or existing house, or a vacant stand.

  97. kim , 23 May 2013

    Hi, i earn bewteen R5000-R7000 with 1 dependant that is financailly dependant on me, will i be able to qualify anywhere.

    • Kecia , 24 May 2013

      Hi Kim. Yes, in principle you should be able to qualify. Take a look at the blog that I’ve written about the new application of policy: you can now use the subsidy to buy a house in the resale market, in most provinces. Unfortunately government hasn’t allocated very much to this programme, so the queue is likely to be long, but call the NHFC to check. Their number is 011-644-9800.

  98. Neramala , 31 May 2013

    Hi there, do you guys work on the net pay, what we take home salary? The company that I work for works on a cost to company [CTC]. What’s on my pay slip is R6800, my Net Pay is R4272.60. I am married and my husband salary is under R13,000 and his net pay is around R10,000. Am I entitled to apply for this. We never owned or bought a house before and we really need to purchase a house now. Is there anyway you can assist?

    • Kecia , 03 June 2013

      Hello Neramaia. The subsidy eligibility range is your entire cost to company, not the net pay, and it is based on household income. Your total household income is R19800 per month, which means that you wouldn’t qualify. Even if it were on net pay, however, your household income would be almost R15 000 per month, the limit for the subsidy.

  99. Thabi , 14 June 2013

    Hi Kecia

    I am currently getting the Housing rental allowance offered by the government. So I would like to know if i qualify for the FLISP

    • Kecia , 14 June 2013

      Thabi, if you have never owned property before and if you earn between R3501 – R15 000, you should be able to qualify. There are some other criteria so check the documentation. Basically, once you found the property you want to buy, and once you went through the procedures to access the FLISP and the mortgage, and then bought the property, you’d then have to move out of your subsidised rental unit. You can call the NHFC (011-644-9800) or email them (flisp@nhfc.co.za) for more information.

  100. lucia , 18 June 2013

    hi, i earn R5800 p/m, have two kids and my husband isnt working. Do i qualify for a subsidy?

    • Kecia , 19 June 2013

      Lucia, at R5800 per month you should qualify for a FLISP subsidy, but you may struggle to qualify for a mortgage bond. The one option that could work for you is to find a house on the resale market, which might be cheaper than a new house. If you have no other debt, you might be able to just qualify for enough which, together with the subsidy, will allow you to buy a house. Take a look at my more recent blog about buying a house on the resale market – http://www.housingfinanceafrica.org/blog/flisp-housing-subsidy-extends-to-resale-market/

  101. t chapi , 30 June 2013

    gorvement is doing right I thank these must be announced to the all south african workers throw labour lore because many workers no nothing .

  102. Victor , 01 August 2013

    Hi Kecia, I currently earn R10000 before deduction and have two kids living with their mother. I want to buy a house. Do I qualify for the subsidy?

    • Kecia , 03 August 2013

      Victor, the policy says that you must have financial dependents, but I’m not sure how it applies if you’re not living with them. I would ask this question directly of the NHFC, the administrators of the subsidy programme. You can email them on flisp@nhfc.co.za or call on 0860 011 011. Also download the pamphlet on the FLISP.

  103. Ron , 06 August 2013

    Hi. My sister has build a 5 room house which it is now in the roof level. She is not working but getting getting disable grant. She is now unable to finish the house. Where. Those the subsidy came in in this situation.

    • Kecia , 08 August 2013

      Ron, the subsidy is only available to people who do not own a house already – so in principle, it shouldn’t work in a situation as you describe. However, there may be some details regarding your sisters situation that I’m not aware of. Please call the NHFC on 0860 011 011 and describe your sister’s situation to them.

  104. MPUMI , 07 August 2013

    hi im earning R5200 with 1 kid what do i do to get a government subsidy for a house.

    • Kecia , 08 August 2013

      Hi Mpumi – at your income, you should qualify for the FLISP subsidy. You can download the brochure from here, and then call the NHFC on 0860 011 011 or 011 644 9800 to find out about the next steps.

  105. Sakhile , 07 August 2013

    Hi Kecia. Im doing research on RDP houses and have an idea that i think can speed up the process of delivery,starting with those earning below R3500. I just read your article and its given me alot of insight on. Im just a 19year old by the way and trying to put up a presentation for someone involved with the delivery of RDP houses or the minister of housing settlements if possible. I was just wondering if i could tell you this you this idea,and maybe you could tell me if its too far fetched or it is possible if taken into serious concideration.

    • Kecia , 08 August 2013

      Hi Sakhile – great to hear from you. I’d love to hear your idea. Please email me directly on kecia@housingfinanceafrica.org and we’ll set up a time. I look forward to hearing from you.

  106. brenda , 03 September 2013

    Iam Brenda i earn R5400 would like to know if I can Qualify for the house as i need it and how do i go about applaying for the loan.And the amount i qualify for and approximately how much will i pay per month

    • Kecia , 15 September 2013

      Hi Brenda. At your income you should qualify – but you have to also qualify for a mortgage loan and satisfy a range of other criteria. If you were to qualify, the amount would be about R74 175. Then, you’d have to qualify for a mortgage, which at your income might give you about R130 000 – this means that you’d be able to afford to buy a house for about R200 000. What this means is that you’d have to buy a house on the resale market, not a new one. The FLISP subsidy policy allows this in some provinces. Take a look at the FLISP Pamphlet and then call the NHFC to discuss it further. Good luck.

  107. nthabiseng , 25 September 2013

    Am currently earning a basic salary of R4000 per month and I’d like to buy a house, could you please advice me what to do

    • Kecia , 15 October 2013

      Hi Nthabiseng. At R4000/month, however, its unlikely that you’ll qualify for a mortgage. However, depending on your municipality and the programmes they have in place you should be able to 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.

  108. SLINDILE , 14 October 2013

    I APPLIED FOR AN RDP HOUSE WHILE I WAS STILL STUDYING AND NOW I AM WORKING AS AN INTERN IT IS A CONTRACT FOR 1 YEAR THEY SAY I DONT QUALIFY HOW COME IS THAT

    • Kecia , 05 November 2013

      Hi there. The RDP subsidy is only available to households who earn a household income of less than R3500, and who satisfy a range of other criteria. It is possible that you now earn more than the maximum amount. If this is the case, you can explore the Finance Linked Individual Subsidy Programme or FLISP.

  109. Boitumelo , 21 October 2013

    hi my name is Boitumelo i heard of this houses, i earn 4030 before deduction lives in klerksdorp. i have been in the waiting list of rdp houses from 2005 till now i dont have one. i really need to have a home for my 2 kids. help me about where to go do what, so i can have my own house

    • Kecia , 05 November 2013

      Hi Boitumelo. At your income, you are likely to qualify for the FLISP – and possibly close to the maximum amount of R87 000. However, in order to access the FLISP, you would have to also qualify for mortgage finance, which at your income, is unlikely. There is a clause in the FLISP policy that says that people who earn between R3500 – R7000 and who will not qualify for mortgage finance, can apply to their municipality to instead get a serviced stand for free. Because you earn more than R3500 per month, you can no longer get the RDP house, but this serviced stand option may work for you. You should call the municipal offices in Klerksdorp and ask them if you can apply for a serviced stand, as part of the FLISP programme, from them. If they don’t understand what you’re saying, give them a copy of the policy, which you can download here, and tell them to look at Section 5 on page 7. I hope they respond positively.

  110. RON , 21 October 2013

    Good day, i have got somebody who want to sell the stand to me. the stand those not have a house but there is an electricity already. I want to know what are the procedure there? the area is a scatter camp.

    • Kecia , 05 November 2013

      Hi Ron. The FLISP subsidy does look like it can be used for the purchase of a serviced stand. You should check with the NHFC to be sure that you qualify (011-644-9800) and also make sure that the seller of the stand has the right to sell the property – that is, that he or she has a title deed and that the sale transaction is done formally and registered in the deeds registry, so that once you’ve paid for it, it becomes legally yours.

  111. R Howard , 05 November 2013

    Hi, it is encouraging to see that the government wants to avail a billion rand to avail a mixture of housing opportunities for our people. The truth is: it’s not going to solve our the current and future housing demand challenges.
    It is time time for national government to stop throwing good money after bad ideas.

    There are other solutions for our challenges, for instance:

    1. Subsidies create a perpetuation of dependence for hand outs
    2. It also deprive people of inputs regarding sizes of houses and erven
    3. In this way the apartheid town planning paradigms get a new lease on life, because our children cannot entertain friends inside these matchbox houses or play outside on these matchbox erven located on earthworm wide streets
    4. They therefore have to find spaces elsewhere for recreation, and that’s where they meet the gangs and other social miscreants, resulting in a variety of unnecessary results like crime and becoming cheap labour withot living to their true talentand potential
    5. Each municipality in SA have enough land for housing, all that needs to be done is to establish the current housing backlog, determine what the future housing demand would be for the next 50 – 100 years and demarcate land to cater for erven of 375sqm and allow people to build a house/home eg a bungalow / wendyhouse [as was done when I was a child]
    6. Allocate these serviced to the people and charged them a monthly rental of for the next
    25 years after which period the land becames their property
    7. The people in the meantime can do alterations and convert their houses into formal housing as and when their finances allow them to do so [the previous regime allowed this and today people are the proud owners of very expensive immovable assets
    8. There's a lot more to say about the subject and the planning aspects as well as financing and host of other considerations, but our government, [who actually usurped power from the people, because the people gave the goverment only a mandate to govern and to administer the affairs of the people, but the mandate got lost and people are given to understand that they have vioted their power into the hands of the government] has to start listening to the people who are the raw intellect of the nation because they kive the lives on the ground and are aware of what the solutions of the problems are.

    • Kecia , 05 November 2013

      Hi there. Certainly there are many who are advocating for a change in approach regarding our housing subsidy programme. You may be interested to read the recent report by the Financial and Fiscal Commission, entitled “Exploring Alternative Finance and Policy Options for Effective and Sustainable Delivery of Housing in South Africa”. The National Development Plan also has some very interesting recommendations for South Africa’s housing sector.

  112. Mel , 06 November 2013

    Hi,I would like to apply for housing that they are busy building in our area,its going for R290 000,the agents deals with everything but what if you qualify for a subsidy but can’t get a bankloan coz of bad credit?how else can I get assistance?or will they be able to help us regardless of our credit ..the rent we are paying is twice what we will pay back on bond replayments

    • Kecia , 07 November 2013

      Mel, the only way to access the FLISP subsidy is with a mortgage. This means that if you’re blacklisted, you can’t get assistance. The only way you can deal with this is if you resolve your credit situation, pay back any debts outstanding, and then approach the bank for a mortgage. That your rent is twice what your bond repayments would be will be useful information for the bank when they consider your credit worthiness – but they will only have a conversation if you resolve your credit situation. I hope this helps.

  113. sibongile , 15 November 2013

    Hi I’m 31yrs old and want to buy a house.I earn R3460.00pm so I want to know do I qualify for a subsidy or RDP?Please help…

    • Kecia , 19 November 2013

      Hi Sibongile. At your income – if R3460 is the total income of all members of your household, and if you have dependents and have never benefited from a housing subsidy before – you should qualify for an RDP housing subsidy. You should contact your local municipality and ask them about the process of putting yourself on their housing waiting list.

  114. Mirriam , 24 November 2013

    Good Day Kecia, I am currently renting a house in Cosmo city and would like to own my own house. My gross salary is R7000, nett is R6000. where in Cosmo city can I apply for FLISP. I would really like to get a house before March 2014, I have two depends. does this affect my qualifying criteria?

    • Kecia , 28 November 2013

      Hi Mirriam. At your income, you should be able to qualify for the FLISP. You apply for it via your bank. These are the steps you must follow: Identify the house you want to buy, and make sure its within your affordability. At your income, its likely you’ll qualify for about R70 000 in subsidy, and about R145 000 in mortgage loan – that is, if you don’t have any other debt. This means that the house you want to buy should cost no more than R215 000. 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. 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.

  115. Dino , 12 December 2013

    Please tell me how do I go about to qualify for a housing loan

    Thanx
    Dino

    • Kecia , 09 January 2014

      Hi there. The best place to get an answer to your question is the bank or financial institution from whom you want the loan. Lenders have different criteria. Generally, however, they want you to have a regular income from a permanent job, that is large enough to support the repayment requirements of the loan that you want. They will also require that you have a clear credit record – no adverse listings – and that the property that you want to buy is worth the loan amount that you want to use to buy it. When you go to the bank, bring your payslip and any other information with you that will give the bank an idea of your financial position and your capacity to pay the loan. Also, check to see if you qualify for the FLISP subsidy (you have to earn a household income of between R3501 and R15 000 per month). The bank should also help you with this.

  116. abigail titus , 01 January 2014

    Hi Kecia. Just wanted to know if I would be eligible for housing subsidy if i want to buy my parents house… My income before deduction is less than R3000.00 pm

    • Kecia , 09 January 2014

      Abigail, yes, I think you can apply for the subsidy to buy your parent’s house – that is, if they’re willing to sell, and if the price is less than R300 000 per month. At your income, you would need to apply for the individual subsidy – and this is only available in certain provinces. The maximum value of that subsidy is about R87 000 – would this cover the purchase price that your parents would require? And do they have a title deed that can be transferred into your name? For starters, you should contact your provincial department of human settlements and ask them if they offer the individual housing subsidy.

  117. Pamela , 11 January 2014

    Hi Kecia,
    I am currently the sole income earner in my family with a salary of R100000 gross p.a, and a net of R7600 p.m, but I am not permanent at work and I live in KZN and wish to have a house. How can I get the department to assist me in getting a house without getting a loan as I cannot qualify for it? My husband is unemployed and we have a 4 months old baby, so it is important to me that we get a house before my contract at work comes to en end. I have tried to go to the Municipality to buy one of 2 lands that I have seen in the township, but was told that one is reserved by National Housing for future development purposes (the councillor is not aware of such development plans or that the land is reserved by National Housing) and for the second one, it will have to be advertised on paper, and I will have to bid for it together with other people who will apply for it. Now this Municipality has made it clear for me that its interest is to make money and not giving the best service to its community. But I have hope that you can assist me, my contract ends in June, after that we will have no income at all, and the landlord may kick us out if we dont pay his rent.

    • Kecia , 30 January 2014

      Hi Pamela. You’re in a difficult situation because although you earn within the target market range for the FLISP subsidy, the only way you can access it is together with a mortgage bond – which you won’t get if your employment isn’t secure. The only other option you have is that you apply to your municipality to get a serviced stand (that is, you would get freehold title to a plot of land that has services, but no house), for free, and then you’d build your own house step-by-step over time, on that land…The FLISP policy allows for people who do not qualify for a mortgage bond to get a piece of land in this way. However, not many municipalities are implementing this aspect of the programme. I would suggest that you ask your municipality if they are offering this as an option. Mostly, its as you say: municipalities sell their land to developers, and to the highest bidder. Good luck.

  118. Mandy , 15 January 2014

    Hi kecia um 24 living in durban with 2 kids and expectin the 3rd, I dnt hav a matric so its hard to find a permanent job, um not working at the moment but will look for another as soon as I deliver again. My only income nw is the child social grant of 600 and any contribution from the father. I desparately need a house for me and my children as my landlord where um renting a room is not ohk with there being 3 children under 1 room. Um looking for sumthng permanent for my kids Please please help and advise

    • Kecia , 30 January 2014

      Hi Mandy. I’m afraid the only kind of housing for which you would qualify, at this stage, is the RDP subsidy process. Are you on a waiting list in your area? Unfortunately the housing delivery process is very slow and some people sit on the waiting list for years. I wish I could help you, but there are very few options. Perhaps, can you look for a bigger room to rent? Good luck.

  119. Vanessa , 21 January 2014

    Hi Kecia Plse help me I have taken a home loan with Std bank in 1996 for R142 000.I am a first time home owner I need to apply for a subsidy. I am the only person paying for the bond I am single and 1 dependent who 16yrs who is still in school.I am earning R8000.and I am finding it very difficult paying for every thing on my own no extra income.Plse help me sort out the forms so I can apply for goverment subsidy that will help greatly. The home loan is on my name.

    • Kecia , 30 January 2014

      Hi Vanessa. I’m afraid that since you bought your house in 1996, you no longer qualify for the FLISP subsidy, even though your loan with Standard Bank is still not paid off. The FLISP is only for first time home buyers who don’t have a house when they apply for the subsidy – that is, the subsidy helps them buy their first house. It does not apply retrospectively to homebuyers who are currently servicing a loan. I’m interested though: if you got your loan in 1996, you should be pretty close to paying it off by now – perhaps only two more years. Check with the bank, but you should be almost done paying off the full house. Well done!

  120. Phiwe , 27 January 2014

    Hi Kecia I earn 7300 before deductions and 6500 after I would like to know my affordability. I am a single lady with no children. Will I be able to purchase a house?

    • Kecia , 30 January 2014

      Hi Phiwe – I can only give you a rough estimate. At your income, you would qualify for about R60 000 in the FLISP subsidy, and about R157 000 in mortgage finance – that is, if you have no other debt. This means that you might be able to buy a house for about R210 000 or so. There aren’t any new houses on the market for that price range, so you’ll have to look at some existing areas and buy a resale house. Please check with your bank, however, to make sure about your affordability. They’ll be able to calculate it much more accurately than I can.

  121. sandy , 11 February 2014

    if i am single with only my parents as my dependents and my income is more than R15000 per month will i qualify?

    • Kecia , 05 March 2014

      Hi Sandy. I’m sorry, but the FLISP subsidy only applies to households with an income of less than R15 000 per month.

  122. Thembi , 14 March 2014

    Hi;
    I earn R5000 & I am a single mom. How can i go about in getting a home for me and my son?

    • Kecia , 17 March 2014

      Hi Thembi. At your income you should qualify for the FLISP subsidy – however, to access this you also need to qualify for mortgage finance. If you haven’t any other debt, and if you have a good credit record, you can apply for a bond which, together with the subsidy, you can use to buy a house. At your income it is unlikely that you’ll qualify for enough of a mortgage to afford a new house. You’ll have to buy a house on the resale market. Depending on your credit record, you might qualify for just over R100 000 in a mortgage bond. The FLISP that you’d qualify for would be about R76 000. So, you should look for a house costing in the region of R176 000. Once you find it, contact the NHFC for more information – they have a pamphlet on the FLISP available here.

  123. glynnis , 26 March 2014

    Hi, I’m a single mother of three children and I earn R12 000 per month. What can I do to get a government house in East london

    • Kecia , 16 April 2014

      Hi there. Take a look at the FLISP pamphlet – this should give you the number of who to call in your area. The FLISP is available to households earning R3501-R15000, who have never owned property before, who qualify for mortgage finance and use the mortgage and the FLISP together to buy a house costing less than R300 000.

  124. yolisa , 02 April 2014

    high
    im earning 7500 i am intrested on the serviced stands im renting in the west rand roodepoort area.can you please help me with more information on how,where and how much do they cost and if the bank can finance me to buy a stand.

    • Kecia , 16 April 2014

      Hi Yolisa. You should be able to use the FLISP subsidy to buy the serviced stand, together with a bank loan. Take a look at the FLISP pamphlet and give the NHFC a call to ask them how to navigate the transaction.

  125. Nhlanhla Malinga , 19 April 2014

    Hello Kecia I’m currentely renting for R4500 & earning R8135 pm. I cant afford to pay this rent anymore. I need to pay my own house.Any details on this flisp subsidy will be appreciated. Thanx

    • Kecia , 04 May 2014

      Hi Nhlanhla. You can download the FLISP pamphlet from here, for more information. At your income, it is possible that you could get a FLISP subsidy of about R56 000. If you don’t have any other debt outstanding, you might be able to qualify for a mortgage of about R187 000, paying a monthly repayment of about R2000 (remember, you’ll also have rates and services charges to pay, and other costs of home ownership, so you don’t want your mortgage obligation to be too high). Put these two together, and it puts your housing affordability at about R243 000. There’s nothing at this price in the new-build market. You’d have to find a house available for sale in the resale market.

  126. isabella , 03 May 2014

    hi

    my name is Nompumelelo Hlatshwayo grew up in soweto and have been living here for over 20years, i live with my mum and saw her struggling for over my life time and im currently 25 of age, employed for 3years now and earning the amount of R3870-00 per month and i would like assisstant in buying a subsidised house because my mum is the only partner i have been living with for the past 5years, so does that limit my chances of qualifying for the subsidised house?

    Thanks
    Ni Hlatshwayo
    0732967602

    • Kecia , 04 May 2014

      Hi there – you’re in a bit of a difficult spot. You earn enough to qualify for a FLISP subsidy, but probably not enough to access a mortgage loan. That said, maybe you should go to your bank and ask them how they would deal with your situation. In principle, they’ve made a commitment in terms of the Financial Sector Charter to provide housing finance to low income earners, even at your income level. At your income, and if they could give you a mortgage loan, you could probably afford to buy a house for about R150 000 or R160 000. That won’t be a new house. It would probably be an old RDP house available for resale – RDP houses that have been occupied for over 8 years can be sold. Explain to the bank that this is what you want to do: use the FLISP to buy an old RDP house in Soweto – and ask them if they would also provide mortgage finance. If they agree, you can go ahead and find a house that suits your affordability. Good luck.

  127. yusuf , 06 May 2014

    I would like to no if myself & partner are unemployed will be able to qualify for a housing subsidy.as my mother has given me first privelage to buy her house.at the moment I’m living in my inlaws home & here is forever family drama over a house.

    • Kecia , 08 May 2014

      Hi Yusuf. If you don’t have an income at all, you are more likely to qualify for an RDP or individual subsidy, which is targeted at households earning less than R3500 per month. You need to speak with your municipality about subsidy eligibility. If you want to buy your mother’s house, ask the municipality if you can get an individual subsidy to cover the costs of this purchase – this would be about R82 000, I think, and would be payable through a conveyancer to the seller of the property when the property is registered in your name. Not all municipalities offer this, but yours might. The process does take a very long time, and you’ll need to have all your documents in order. Be persistent: the policy does allow for this, but its not a common way for people in your income bracket to get the housing benefit. Speak to your municipality – or if that doesn’t work, your province – they should be able to give you all the information and help you with the process.

  128. Ayanda Ngubane , 08 May 2014

    Hi Kecia
    I am a working single mother of 2 earning R3000 pm. I have applied for RDP housing years ago and whenever we go and ask about the process our municipal council show no interest in update us on further info. Propably the list doesnt exist anymore, So I looked into buying a house as there are people who are selling their RDP houses due retirement plans etc. I went to department of housing but they didnt seem to have time to explain. My question is: there is a RDP house for sale at R60 000 with an income of 3000pm do I qualify for government subsidy?

    • Kecia , 08 May 2014

      Hi Ayanda – you’re right, the ‘waiting list’ is not a very transparent document or process and many people have been waiting for a very long time. That said, it is also true that there is enormous demand for housing, and government struggles to keep up with the need. Yes, there should be a way that you could buy an existing RDP house with an individual subsidy. The individual subsidy is for the price of the unit you want to buy, up to about R82 000, I think. You need to ask your municipality if they do it. In terms of the law, you can only buy an RDP house that is older than 8 years, and for which the current owner has a title deed. So: to find the house, go to the area where you’d like to live and ask around if there’s anyone who wants to sell their house. When you find one, make an offer to purchase, conditional on you getting the subsidy. Then take this document back to your municipality or province and say you want to apply for the subsidy. You’ll have to be persistent – even pushy! – because the process takes a long time and you don’t want the seller to lose interest. If government approves the subsidy, they’ll then pay the amount out to the legal person who facilitates the transfer of the property into your name (this person is called the conveyancer). Good luck.

  129. thandi , 14 May 2014

    hi KeciaI
    am a working single mother of 2 earning 5000,but im black listed,what are my chances?

    • Kecia , 15 June 2014

      Hi Thandi – sorry for the very delayed response. At your income you’d be eligible for the FLISP, but with a black listing you wouldn’t be able to access mortgage finance, so that would make the FLISP inaccessible to you. The only other possibility you have is to apply for the serviced stand that the FLISP allows for with households that earn less than R7000. This is not really well developed, but you can ask your municipality about it. According to the policy, households that earn R3501 – R7000 can apply for a serviced stand in lieu of the FLISP grant. You then get the land with services, and its your responsibility to build the house on top of it. I don’t know of any municipalities that have done this, but it is allowed for in the policy. Call the local housing office in your municipality and ask them. You can download the FLISP Policy here, and then take it to them.

  130. Amina Charles Martin , 20 May 2014

    Hello, I am from Cape Town and is permanently employed. I am looking for a house for me, my husband and four kids. I have never owned a house nor have I received a housing subsidy before. I earn just over R4000 a month. if you can please help me with advice it would be appreciated.

    Thank you
    Desperate

    • Kecia , 15 June 2014

      Hi Amina – at your income, you may be able to afford something for around R150 000, if you also get the FLISP subsidy to help. This means you need to look for something in the resale market. Take a look at existing RDP areas that are older than 8 years and ask around if anyone wants to sell their house. When you find one that is in your price range (even if you find one lower than that amount), you need to put in an offer to purchase that is conditional upon your accessing the FLISP (you should be able to access about R80 000 in FLISP), and a mortgage (to pay the difference). Then you go to your bank and apply for the amount of a mortgage you’ll require, and once they’ve approved you, you can then apply for the FLISP. its a bit of a complicated process but I’m sure you’ll manage. Good luck and let me know if you have any other questions.

  131. TSHEPO , 27 May 2014

    Hi Kecia
    This is interesting & thanks for info.
    I earn R10500 & I just bought an Rdp house from someone because I wouldn’t afford a bonds house because of my budget & taking care of my family & the extended one.so tell me here would I qualify for a FLISP if I apply for a new house.
    And futher I was told that FLISP is for government employees only who earn less than R10000 & never owned a house or property before.

    • Kecia , 15 June 2014

      Hi Tshepo. If you’ve bought the RDP house formally – that is, if it is registered in your name – then you won’t be eligible for a subsidy. It is only available to people who have never owned a house or a property before. The FLISP is not only for government employees. It is for anyone who earns a household income between R3501-R15000 per month, who has never owned a house or a property before, who qualifies for mortgage finance, and who uses the subsidy and the mortgage to buy a house costing less than R300 000.

  132. Lynette , 04 June 2014

    how long does it take to get feedback on your subsidy application

    • Kecia , 15 June 2014

      Hi Lynette – it depends. On the RDP subsidy, you just add your name to the waiting list and then you wait. You can check back with the municipality from time to time, but some people have been on the list for over ten years. On the FLISP subsidy, the NHFC promises to get back to you within seven days. The entire transaction process will take time though, because you have to apply for a mortgage, then the FLISP, then for the transfer of the house. Take a look at the pamphlet for some more information. Once you are approved, the FLISP money is paid to the conveyancer who is handling the transaction, and then that, together with the mortgage bond, are paid to the seller who is selling the house that you’re buying.

  133. sibongile d , 10 June 2014

    my mother did register for RDP IT”S BEEN ALMOST 20 YEARS now but still she still live in shack.me i live with my granny and my baby boy now and my uncle build the house for my granny and he doesn”t want us the especially me he even tried to rape me so i’m really desperate for a place i’m not working pls pls i really need your help if you just find me an RDP to stay with my baby.iam even emotionally abused plz anyone who can help me toe i really need your help.

    • Kecia , 15 June 2014

      Hi there. I’m so sorry to hear about your situation. It really does sound difficult. I’m afraid there is a terribly long waiting list for the RDP houses – so many people want them, and the government just can’t build that fast. You need to call your local municipality and ask them how you can get onto the list. Then you need to get a receipt – and then follow up regularly with the municipality to see where they are. Keep on checking back with them so that you’re always informed. In the meantime, have you thought of maybe moving somewhere else? Good luck.

  134. Manqoba , 16 July 2014

    hello, i got married in south africa wit a german woman and we got a child together and now we live in germany coz we r studying here, my father got an RDP housing around 2007 and when he died he had left it on me as the benefitiary, and now the area counseler is threatning my mom and younger sister to kick them out coz the house is not written under their name and im not there, he wants me to come back and change the ownership to my mother then, but its not cheap to fly and i will miss on my studies, wat should i do? and who should i contact? would it be possible to do everything online or via fax and should i come down to south africa with my wife and kid? south african embassy in berlin told me they cant do anything but to write a letter that confims that i am not working here but getting a government supporting fee. i seriously need help. thanx.

    • Kecia , 16 July 2014

      Dear Manqoba – I’ve asked a colleague for advice on your question. Certainly the local counsellor has no right to evict your family if you, as the owner of the RDP house, has given them permission to stay there. As the owner of the house, it is your right to determine who lives there. However: did you put the title deed into your name after your father passed away? And if not, do you have your father’s Will to prove that he bequeathed the house to you? Please let me know. In the meantime, I’ll see what else I can find out for you.

      • Manqoba , 16 July 2014

        hello once again, title deed hasnt been issued until now coz they want me to come and feel in some papers as a dependent but when i was there in Dept. of housing after my father died nobody told me about anything like that, they said it will come out wit my fathers name and then i will have to change it later myself. i have my fathers Will to prove that he bequeathed the house on me and the print out from Dept of housing that prove that i am his dependent and when he fall out, it should all fall on me wat he owned. thanx

        • Kecia , 16 July 2014

          Hi Manqoba. I’ve been in touch with an NGO that provides legal assistance – they’re called ProBono.org. They say you should give them a call, and they can help you. Call their offices on +27-11-339-6080 and ask to speak with Gift. Please let me know how it goes and if you get the help you need. Good luck.

  135. Tlale , 16 July 2014

    Hi

    My name is Tlale and I work for the Department of Education in NorthWest (Potchefstroom). I am a teacher by profession and do get housing allowance. My story is I have been trying to get a house and the banks tond me that I cannot meet the requirement. I just found out about State Guarantee and applied for maybe it might help me. How can you advice me on this situation because I reeally need a house now?

    • Kecia , 20 July 2014

      Hello Tlale. If you earn between R3501 – R15 000 household income per month, you may qualify for a FLISP subsidy. This is a subsidy that gets tied to a bond to help you buy a house. Depending on what you earn, you get a subsidy between about R10 000 and R87 000 (the more you earn, the less subsidy). This gets applied as a deposit on the house you want to buy, and then you get a mortgage bond for the difference. However, to qualify for a mortgage, you need to have a good credit record, not be in debt, and need to demonstrate that you can honour the conditions of the loan and make regular repayments. Also, your income impacts on the size of the mortgage loan you can access – you have to be able to afford the monthly repayments. Take a look at the FLISP pamphlet and come back to me if you have any more questions.

  136. rachel , 19 July 2014

    Hi I just want to know what must I do here where I stay I did applied for a rdp house here in edenville freestate in 2007 but my application form cost lost when I went back to ask them if my application was successfull I only get R800 a month which I must survive on what should I do now I am a widow now I tried everything ask everywhere I can’t afford much rent can you refer me to someone who can help me please it urgent.

    • Kecia , 20 July 2014

      Rachel, you’re in such a difficult position. I’m sorry. On R800 a month, you really can’t afford much rent. You need to go back to the provincial or municipal office and ask them for help. Put yourself back on the list, and push them – follow up by phone and in person, as often as you can. Good luck.

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