20 May 2023
First Home Finance, formerly FLISP, was developed by the Department of Human Settlements as a once-off housing subsidy to enable affordable home-ownership opportunities for South Africans. The subsidy is offered to permanent residents of South Africa, earning between R 3 501 and R 22 000 per month. This is the market segment whose income exceeds the maximum income for a government' free-basic house' but is insufficient to qualify for home loan finance from independent banks and lenders.
Households with a monthly income between R3 501 to R22 000 may qualify for the First Home Finance subsidy if they meet all the criteria. The subsidy you qualify for depends on your income and ranges between R30 001 – R130 505.
Take a look at the below basic requirements to determine whether you qualify for First Home Finance:
Yes. You will not be considered for this subsidy if you do not meet the specified qualifying criteria and requirements.
The Department of Human Settlement administers and processes applications for First Home Finance subsidies.
Once you are pre-approved for a home loan, apply for a FLISP subsidy at your local Department of Human Settlement office, registering and applying online via the First Home Finance Application portal, or call the National Housing Finance Corporation on 010 085 2199.
The following documents are required as supporting documents when applying for Finance Linked Individual Subsidy Programme (FLISP). Please ensure you provide certified copies of each.
Contact the NHFC or your relevant DHS office directly for details regarding the status of your subsidy application. It takes the NHFC about 7 days to process your subsidy application from receiving a fully completed application form with all required supporting documents.
This process generally takes about 7 days, depending on your application status (above).
You have three options for purchasing a residential property with the FLISP subsidy;
To find out more about the FLISP Accredited Development Projects, contact any Human Settlement Office closest to you. The National Housing Finance Corporation can also provide you with information about FLISP Projects in all provinces across South Africa.
When applying for the First Home Finance subsidy, you will need to provide 'proof of home loan or unsecured loan grant' or an 'approval in principle' from an accredited lender, such as SA Home Loans.
As the Lender, we will assess your home loan or unsecured loan application based on our lending criteria. Upon our granting the home loan or unsecured loan approval, you or your property agent/developer complete the First Home Finance application form obtainable from the NHFC or Provincial Department website and submit the application and supporting documents to the NHFC or your relevant Provincial Department.
The NHFC or your Provincial Department will process the application should your home loan or unsecured loan be approved. If the outcome of the application is positive, the subsidy will be granted, and if negative, the application will be declined. You may continue the transaction without First Home Finance if you qualify for a home loan or unsecured loan. Find out what you can afford without First Home Finance using our home loan affordability calculator.
You may continue the home-buying process with SA Home Loans if you do not qualify for a First Home Finance Subsidy. We conduct our credit and affordability assessments on home loan and unsecured loan applications based on the National Credit Act (NCA) criteria.
Estate Agency Affairs Board (EAAB)
Contact Number: 087 285 3222
National Credit Regulator (NCR)
Contact Number: 0860 627 627 / 011-554 2600