“Flips” is a common spelling of FLISP, the Finance Linked Individual Subsidy Programme, which provincial Human Settlements departments now call First Home Finance. It is a once-off subsidy for first-time home buyers who earn between R3 501 and R22 000.99 a month as a household, and it is not a loan.
To apply, you first get a home loan approved in principle, then submit the application with certified documents to your provincial Human Settlements department before the property is transferred to you. The application is free. Details below follow the KwaZulu-Natal Human Settlements FAQ unless stated; other provinces run the programme through their own departments.
Eligibility Requirements at a Glance
- A South African citizen over 18, or a permanent resident with a valid permit
- Gross household income of R3 501 to R22 000.99 a month
- Competent to contract: over 18, or legally married or divorced and of sound mind
- A first-time home owner who has never owned a fixed residential property or received a state-assisted housing benefit
- Married or cohabiting; a single applicant needs a proven financial dependant
- A home loan or an approved alternative, because the subsidy is approved subject to loan approval
- Only one subsidy per household, paid once
A property bought outright with savings does not qualify. Having a previous property repossessed does not restore first-time status. A housing allowance from government does not disqualify you, but it is added to your income when your band is worked out.
Documents and Supporting Evidence Required
Provincial lists (for example the Eastern Cape First Home Finance page) ask for certified copies of:
- Your bar-coded or smart ID, and a permanent residence permit if applicable
- Birth certificates or IDs of dependants, and proof of guardianship for foster children
- A marriage or civil union certificate or a cohabiting affidavit, a divorce settlement or a spouse’s death certificate, as applicable
- Proof of monthly income
- The home loan approval in principle or grant letter
- The agreement of sale, or the building contract and approved plan where applicable
Ask your provincial department for its current checklist and application form before you copy anything.
Application Requirements and Steps
- Find a property and arrange finance: an approved loan from a major bank, a pension or provident fund backed loan, a loan from a registered co-operative or stokvel, an instalment sale or rent-to-own, or assistance through GEHS (KZN list). The Department does not sell properties.
- Get an approval in principle from an accredited lender. The lender assesses the loan itself, subject to the subsidy being approved.
- Submit the application and certified documents to your provincial Human Settlements department, through the lender or accredited developer where the province works that way.
- The Department only funds approved applications. If an application is declined, reasons are given to the lender.
- Receive the subsidy, which can be used as a deposit, for legal fees, or credited to the home loan to reduce it.
You must apply before the property is transferred to you.
Costs, Processing Times and Key Conditions
Application cost. None. It is a free government service. Mpumalanga also states that neither a developer nor a lender may charge an administration fee for processing the application.
Subsidy amount. It is a sliding scale: the more your household earns, the less you receive. The current KwaZulu-Natal FAQ gives R169 264.60 at R3 501 household income, falling to R38 911.40 at R22 000.99. Other provincial pages show different ranges (the Eastern Cape page says R30,001 to R130,505, and the Mpumalanga brochure shows older figures), so confirm the amount with your province.
Not repayable. The subsidy is a once-off payment that you do not repay to government.
Processing time. No province we checked publishes a standard approval time, so do not fix a transfer date around the approval. Ask your lender and the Department.
Where and How to Apply
In KwaZulu-Natal, collect the application form from the FLISP Help Desk (Durban or Pietermaritzburg), request it by email at [email protected], or download it from the KZN Human Settlements website. In other provinces, apply through your provincial Human Settlements department, together with your lender or accredited developer.
The Free State programme covers properties in formal towns where transfer and bond registration are recorded in the Deeds Office, with no maximum property price. Ask your own province whether similar conditions apply.
Keep copies of everything you submit.
Frequently Asked Questions
Is FLISP a loan?
No. It is a once-off payment that is not repayable. You use it as a deposit, for legal fees, or to reduce your home loan.
What income qualifies?
Gross household income of R3 501 to R22 000.99 a month. Households below R3 501 fall under the Individual Subsidy route instead.
Do I need a home loan first?
Yes, you need a loan approved in principle, or an approved alternative such as a pension or provident backed loan, a stokvel or co-operative loan, or rent-to-own. The Western Cape confirmed in 2022 that the subsidy is no longer restricted to mortgage finance.
What is the flips application and how do I make it?
It is the FLISP or First Home Finance application. Get a loan approval in principle, then submit the form and certified documents to your provincial Human Settlements department before transfer. In KZN, start at the FLISP Help Desk or [email protected].
Does it cost anything to apply?
No. The application is free.
Can I apply after I have taken transfer of the property?
No. You must apply before the property is transferred to you.
Confirm current figures and the application channel with your provincial Human Settlements department. See government application requirements and browse all government service requirements.