FLISP Subsidy (First Home Finance)

The Finance Linked Individual Subsidy Programme (FLISP), now officially called First Home Finance, is a government housing subsidy for first-time homebuyers who earn between R3,501 and R22,000 per month. It provides a once-off, non-repayable payment that reduces the size of your home loan, lowers your monthly repayments, or covers a deposit you could not otherwise afford.

FLISP is administered by the National Housing Finance Corporation (NHFC) and the Department of Human Settlements. The subsidy ranges from approximately R30,001 to R169,264 depending on your income. The less you earn, the larger the subsidy.

Subsidy Range

Up to R169,264

non-repayable

Income Range

R3,501 - R22,000

gross monthly household

Processing

~7 Working Days

once fully submitted

Once-Off

First Home Only

never received a housing subsidy

Subsidy Estimator

Enter your gross monthly household income to see approximately how much FLISP subsidy you could qualify for.

Your Monthly Household Income (R)

Estimated Subsidy

non-repayable, once-off

Your Income Bracket

Subsidy Amounts by Income

The subsidy is calculated on a sliding scale. Lower earners receive more. Here are some representative brackets.

Monthly Household Income	Approximate Subsidy	What It Means
R3,501 - R3,700	~R121,626	Maximum bracket for lowest earners
R5,501 - R5,700	~R110,506	Substantial deposit coverage
R7,101 - R7,300	~R102,893	Significant loan reduction
R10,001 - R10,200	~R69,104	Meaningful deposit or loan top-up
R15,001 - R15,200	~R62,304	Covers transfer fees + deposit
R18,001 - R18,200	~R44,203	Helps bridge affordability gap
R21,801 - R22,000	~R27,960	Minimum bracket for highest earners

What Can You Buy With FLISP?

You have three options for acquiring property with the FLISP subsidy.

Buy an Existing House

Purchase any existing residential property on the open market (new or old). The seller must have a title deed. There is no maximum property price cap.

Buy a Vacant Stand + Build

Purchase a vacant serviced residential stand that is linked to a house-building contract with a home builder registered with the NHBRC.

Build on Your Own Stand

Build a new house on a serviced residential stand or tribal stand (PTO) that you already own, using an NHBRC-registered home builder.

How the Subsidy Works

The FLISP subsidy is paid directly to your bank or financial institution. You never receive the cash yourself. It can be used in several ways.

Reduce Your Loan Amount

The subsidy is applied to reduce the principal of your home loan, which lowers your monthly repayments for the entire loan term.

Use as a Deposit

The subsidy counts as a deposit, improving your chances of home loan approval and potentially securing a lower interest rate.

Cover the Shortfall

If the bank approves you for less than the purchase price, the subsidy can bridge the gap between what the bank offers and what the house costs.

Pay Transfer and Legal Fees

In some cases, the subsidy can be used towards conveyancing fees, transfer duties, and other costs associated with buying a home.

Eligibility & Documents

Who Qualifies?

South African citizen with a valid ID, or permanent resident with a valid permit.
Total gross household income between R3,501 and R22,000 per month (combined if married or cohabiting).
Must be 18 years or older, or legally married or divorced, and of sound mind.
Must be married or cohabiting, or single with financial dependents (children, parents, or other family members you support).
First-time home buyer: never owned a residential property before.
Never received a government housing subsidy of any kind (RDP, BNG, or other).
Must have a home loan pre-approval or approval in principle from a bank or NCR-registered lender. (Other approved financing includes pension-backed loans, employer housing schemes like GEHS, or community savings schemes.)

Documents Required

Smart card or bar-coded ID of every adult in the household (certified copies). Birth certificates for every child in the household (with 13-digit ID number). Proof of South African citizenship. Marriage certificate (if applicable) or affidavit of cohabitation. Divorce decree and settlement agreement (if divorced). Latest payslip or 3 months' bank statements as proof of income. Home loan approval letter or approval in principle from your bank. Signed Offer to Purchase (OTP) for the property. Approved building plan and NHBRC-registered builder contract (if building).

How to Apply

You can apply through the NHFC online portal, at a provincial Department of Human Settlements office, or through your bank or a home loan comparison service.

Check Your Eligibility

Visit fhf.nhfc.co.za and click "Check Eligibility" to confirm you have not previously received a housing subsidy. No registration is needed for this check.

Free eligibility check

Get Home Loan Pre-Approval

Approach your bank or an accredited lender to get a home loan approval or approval in principle. This is a requirement before you can submit a FLISP application. If you do not qualify for a traditional mortgage, ask about pension-backed loans, employer housing schemes (GEHS), or unsecured housing loans.

Bond approval required

Find Your Property

Find a house to buy on the open market, or choose a property from a FLISP Accredited Development Project. You can also purchase a vacant serviced stand linked to an NHBRC builder contract, or build on land you already own. There is no maximum property price cap.

Any residential property

Submit Your Application

Register and apply online at fhf.nhfc.co.za, or submit at your provincial Department of Human Settlements office. Upload all required documents. Your bank or estate agent can also assist you with the application.

Online or in-person

Approval and Payment

The NHFC processes complete applications in approximately 7 working days. If approved, the subsidy is paid directly to your bank or financial institution. It is applied to your home loan to reduce the principal, serve as a deposit, or bridge a shortfall. The subsidy is never paid to you in cash.

Paid to your bank

Married or Cohabiting Couples

If you are applying based on a marriage or cohabitation arrangement, the property must be registered in the names of both spouses in the Deeds Office. Couples married under civil or customary law are assessed as a single unit, meaning your combined income must still fall within R3,501 to R22,000. If one spouse has previously received a housing subsidy or owned property, neither spouse qualifies for FLISP.

FLISP vs RDP Housing: What Is the Difference?

These two programmes serve different income levels and work very differently.

FLISP / First Home Finance

Subsidy + Home Loan

Household income R3,501 to R22,000. You choose and buy your own property on the open market. Requires a home loan from a bank. Subsidy reduces loan amount. You pick the area, size, and type of house. Processed in about 7 days.

RDP / BNG Housing

Fully Free House

Household income below R3,500. Government builds and provides a free house. No home loan needed. You join a waiting list and are allocated a house in a government project. You do not choose the location. Can take years.

Common Questions

Do I need to repay the FLISP subsidy?

No. The FLISP subsidy is a once-off, non-repayable grant from the government. It is not a loan. Once approved and paid to your bank, you do not owe anything back. However, you do still need to repay your home loan to the bank as normal.

Can I apply without a home loan?

Historically, a home loan was the only accepted form of finance. Since updated policy changes, FLISP can now also be used in combination with unsecured housing loans from NCR-registered lenders, pension-backed housing loans, loans from community savings schemes (stokvels and cooperatives), and housing loans through employer-based schemes like GEHS. You should confirm the latest accepted financing options at your provincial Department of Human Settlements or with the NHFC.

Can I buy an RDP house with FLISP?

Yes, you can use the FLISP subsidy to purchase a previously subsidised (RDP) house on the resale market. However, the seller must have held the RDP house for at least 8 years before they are legally allowed to sell it. The property must have a title deed registered in the seller's name.

I already bought a house. Can I apply retroactively?

If you purchased a property that was transferred into your name from 1 April 2012, 1 April 2014, or 28 July 2018 onwards (corresponding to the various policy revisions), and you met all FLISP criteria at the time of purchase, you may be able to apply retroactively. Some provinces and the Western Cape also accept applications within 12 months of purchase. Contact your provincial Department of Human Settlements to confirm whether retroactive applications are currently accepted in your area.

Is there a maximum property price?

The R300,000 property price cap was removed in 2014. You can now purchase any formal residential property at any price, as long as you can secure a home loan for it. The FLISP subsidy will be applied to reduce your loan regardless of the property value. The key factor is whether your bank approves you for a loan that covers the purchase price minus the subsidy.

Can I apply with my family member jointly?

Yes, you can buy a property jointly with a family member. Both applicants must meet all FLISP qualifying criteria: both must be first-time home buyers, neither can have received a previous government housing subsidy, and your combined income must not exceed R22,000 per month. The property will be registered in both names.

I am single with no dependents. Do I qualify?

No. FLISP requires that you are either married, cohabiting with a partner, or single with financial dependents (such as children, parents, siblings under 18, or unwell family members). A single person without any financial dependents does not currently qualify for the FLISP subsidy.

Important Links & Resources

Official FLISP portals, NHFC information, and provincial contacts.

First Home Finance Portal

fhf.nhfc.co.za - Apply online, check eligibility

NHFC First Home Finance

Programme details & qualifying criteria

NHFC FAQ

Detailed answers to common questions

FirstHomeFinance.co.za

Step-by-step application guide

FLISP Subsidy Calculator

flisp.co.za - Calculate your subsidy amount

Dept of Human Settlements

Provincial offices and contact details

grantZA is an independent informational guide and is not affiliated with the NHFC, Department of Human Settlements, or any government department. For official enquiries, call the NHFC at 010 085 2199 or email [email protected].