FLISP: The 2024 Guide to the Government Housing Subsidy | SA Home Loans

20 April 2024

First Home Finance: The 2024 Guide To The Government Housing Subsidy

What is First Home Finance?

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.

Who qualifies for a First Home Finance subsidy?

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.

Do you qualify for First Home Finance?

Take a look at the below basic requirements to determine whether you qualify for First Home Finance:

  1. South African citizen with a valid ID; or permanent residents with a valid permit.
  2. Over 18 years and competent to legally contract.
  3. Never benefited from a Government Housing Subsidy Scheme before.
  4. Must have an ‘Approval in Principle’ of a home loan or an unsecured loan from an accredited South African financial institution such as SA Home Loans.
  5. Be a first-time home buyer, earning from R 3 501 to R 22 000 monthly.

Is it possible not to 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 First Home Finance application process: how to apply in 2024

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.


What documents do you need when applying for First Home Finance?

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.

  • Smart Card or a bar-coded identity document of every adult member of the household.
  • Birth certificates bearing the thirteen-digit identity number for every child member of the household that does not have a bar-coded identity document.
  • Proof of South African citizenship.
  • Marriage certificate for any union solemnized in terms of civil law.
  • Divorce settlement agreement to prove custodianship.
  • Court order or order issued by the Commissioner of Child Welfare to prove guardianship; and,
  • Proof of sources of income.
  • Permission-To-Occupy in the case of applicants in rural areas.
  • Affidavit for any union solemnized in terms of customary law.
  • Proof of Foster Children Guardianship (where applicable)
  • Divorce Certificate (where applicable)
  • Spouse's Death Certificate (where applicable)
  • Proof of Monthly Income
  • Home Loan Approval in Principle/Grant Letter from an Accredited Lender/Bank
  • Agreement of Sale for the residential property
  • Building Contract and Approved Building Plan (where applicable)
  • Affidavits are required for informal marriages solemnized under the South African Civil Law, accompanied by sworn statements to prove the authenticity of the relationship.

First Home Finance 2024 application form

Click here to download the 2024 First Home Finance application form  

How to check your First Home Finance application status

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.

How long does First Home Finance take to pay out?

This process generally takes about 7 days, depending on your application status (above).

What are your options when choosing a house to buy?

You have three options for purchasing a residential property with the FLISP subsidy;

  1. Buy an existing, new or old residential property, or
  2. Buy a vacant serviced residential stand linked to an NHBRC-registered homebuilder contract, or
  3. Build a home on a self-owned serviced residential stand or tribal stand (PTO) through an NHBRC-registered homebuilder.

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.

How can SA Home Loans assist you in this process?

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.

Submitting a home loan application

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 or request a call back and one of our consultants will assist you personally.

What happens to your home loan if you don't qualify for First Home Finance?

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.

Essential contact details for First Home Finance?

National Housing Finance Corporation (NHFC)
Address: Isle of Houghton, Old Trafford 3, 11 Boundary Road, Houghton
Contact Number: 010 085 2199
Email address: [email protected]

Estate Agency Affairs Board (EAAB)
Contact Number: 087 285 3222

National Credit Regulator (NCR)
Contact Number: 0860 627 627 / 011-554 2600

Provincial Department of Human Settlements
You can find contact details for your relevant DHS office on their website: www.dhs.gov.za

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