The government housing subsidy for people who earn too much for a fully subsidised house but too little to service a bond on their own is usually written FLISP — the Finance Linked Individual Subsidy Programme. It is frequently searched for with the spelling above, and it is the same thing.
It is a once-off subsidy, it is not a loan, and a very large number of qualifying households never claim it. This page sets out who qualifies and how it works.
Eligibility Requirements at a Glance
What the finance-linked housing subsidy generally requires.
- South African citizenship, or permanent residence with a valid permit
- Aged 18 or older and legally competent to contract
- A household income within the prescribed band for the programme
- Approved home loan finance or another approved funding route
- First-time home ownership — you must not have owned a property before
- Not having previously benefited from a government housing subsidy
- A dependant or spouse, in the circumstances the programme prescribes
- A property that meets the programme’s conditions
- Application through the correct provincial or municipal channel
Documents and Supporting Evidence Required
The subsidy is linked to your finance approval. It works by reducing the amount you must borrow or by supplementing your deposit, so an approved home loan or an approved alternative funding route is generally a precondition rather than something that follows the subsidy.
The income band is prescribed and revised. The band sits above the level at which a household qualifies for a fully subsidised house and below the level at which the state considers a household able to finance a home unaided. The current band, and the sliding subsidy amount within it, are set by the Department of Human Settlements and are revised — confirm the current figures with the department or your provincial human settlements office.
Household income is what counts, not your individual salary. A spouse’s or partner’s income is included, and this both helps and hinders — it can lift a household out of the band, or bring a single applicant into it.
The subsidy amount is not fixed. It generally reduces as household income rises within the band, so applicants at the lower end receive more.
It is once-off and once only. A person who has previously received a government housing subsidy, in any form, does not qualify again. This includes a subsidy received by a spouse.
You keep the house. This is a subsidy, not a loan, and it is not repaid. There is generally a restriction on selling within a prescribed period, which exists to prevent the subsidy being traded rather than used.
Application Requirements and Steps
What is generally required with the application.
- Certified copies of the South African ID of the applicant and spouse
- A certified copy of the marriage certificate or proof of a customary or life partnership
- Birth certificates of dependants
- A divorce decree or the spouse’s death certificate, where applicable
- Proof of income — payslips, an affidavit for informal income, or bank statements
- The home loan approval letter or approved funding documentation
- The offer to purchase or the building contract
- The prescribed application form, fully completed and signed
- Proof of residence and contact details
Costs, Processing Times and Key Conditions
The application is free. There is no fee to apply for a government housing subsidy. Anyone charging you to apply, to be placed on a list, or to speed up an application is defrauding you, and this is one of the most common frauds committed against people seeking housing.
Processing takes time and depends on the provincial department and the volume of applications. Do not commit to transfer dates on the assumption of a fast approval — discuss the timeline with the conveyancer and the lender.
Verification is thorough. Income, prior ownership and prior subsidy benefit are checked against government records, including the deeds registry and the housing subsidy system. Understating income or concealing a prior benefit is fraud and will be found.
There is generally a restriction on resale within a prescribed period from transfer. Read that condition before signing, particularly if there is any chance of relocation for work.
Budget the transaction costs. Transfer duty where applicable, conveyancing fees, bond registration costs, rates clearance and moving costs are yours and are not covered by the subsidy. First-time buyers routinely underestimate these and are caught short at transfer.
Buying a house has ongoing costs — municipal rates, refuse and water charges, insurance required by the lender, and maintenance. A bond you can just afford becomes unaffordable once these are added, and the consequence is a lost home.
Where and How to Apply
Start with your provincial Department of Human Settlements or your municipality’s housing office, and confirm the current income band, subsidy amounts and application channel before doing anything else.
Ask your bank. Several banks assist clients with these subsidy applications as part of the home loan process, and doing it through the lender is often the simplest route because they already hold the income documents.
Get the home loan approval first where the programme requires it, since the subsidy is calculated against it.
Check your credit record before applying for the loan. You are entitled to a free credit report each year from each registered bureau, and errors are corrected free. A decline for a fixable error costs months.
Ask about the other housing programmes if you fall outside the band. The fully subsidised housing programme serves households below it, and social and rental housing options exist. The housing office can tell you which programme fits your income.
Never pay anyone for a housing subsidy, a house, or a place on a list. Government housing is allocated on prescribed criteria. Every offer to sell you access is a fraud, and the money is never recovered.
Keep copies of everything submitted, with a reference number and the name of the official who received it.
Free help is available from the municipal housing office and from Legal Aid South Africa if a dispute arises.
Frequently Asked Questions
Is FLISP a loan?
No. It is a once-off subsidy that is not repaid. There is generally a restriction on selling the property within a prescribed period, which prevents the subsidy being traded.
What income qualifies?
A prescribed household income band above the fully subsidised level and below unaided affordability. The band and the sliding subsidy amount are revised — confirm current figures with the Department of Human Settlements.
Do I need a home loan first?
Generally yes. The subsidy is linked to approved finance and calculated against it, so the loan approval usually comes first.
Does it cost anything to apply?
No. The application is free. Anyone charging to apply, to list you, or to speed it up is defrauding you.
Income bands, subsidy amounts, qualifying criteria, resale restrictions and application channels are set by the Department of Human Settlements and the provinces and are revised. Confirm current requirements with your provincial human settlements department or municipal housing office.