Pretoria - The North West Department of Local Government and Human Settlements has introduced a Finance Linked Individual Subsidy Progamme (FLISP) to various communities and government employees throughout the province.
FLISP allows qualifying beneficiaries to reduce the initial mortgage loan amount or augment the shortfall between the qualifying loan and the total house price, bringing the eventual home loan instalment to an affordable amount over the loan repayment period.
FLISP was introduced as one of the many government housing programmes to benefit those who do not qualify for low cost houses.
It is specifically intended for the market segment whose income is inadequate to qualify for a home loan but exceeds the maximum limit applicable to access government's 'free basic house' subsidy scheme.
This market segment, generally known as the 'affordable/gap' market, earns between R3 501 and R15 000 per month.
In order to qualify for the subsidy, an applicant should be a South African citizen or permanent resident with a valid identity document. They must be a first time home buyer with a clean credit record.
Depending on the gross household income, the once-off subsidy amount may vary between R10 000 and R87 000 and it is not paid directly into the applicant’s account.
During a recent session with government officials in Bojanala District Municipality, the MEC for Local Government and Human Settlements, Collen Maine, said the subsidy will not be paid into their personal banking accounts.
“When you apply for the subsidy, we deal with the bank and not the individuals.
“The money will be paid to the bank that is funding your bond to guarantee certainty that the subsidy will be for the intended purpose - which is building a house. We don’t want you to go buy clothes and expensive cars with that subsidy.
“The department has mandated the National Housing Finance Corporation (NHFC) to be the agent of FLISP in ensuring a sustainable supply of affordable housing stock, which means it will secure participation of the major banks as far as home loan application is concerned,” MEC Maine said.
Awareness around FLISP will continue to be created all over the province to get people clued up on government programmes and benefits as far as housing is concerned. – SAnews.gov.za
