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First-time buyers do you know your FLISP options?

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Many first-time home buyers whose salaries fall in the lower- to middle-income category are unaware that they may qualify for the government housing subsidy, Finance Linked Individual Subsidy Programme (FLISP).http://hometimes.co.za/advertise-with-hometimes/This grant can be used as a deposit on a new home purchased and/or to pay for the legal costs of acquiring a property. In line with this, bond originator ooba, joined forces with Consumer Mortgage Management and launched a new service to assist first-time home buyers with applying for their FLISP  subsidy as soon as their home loan is approved, which could save them thousands of rand in interest.

Homes in eThekwini's Lakehaven project.

Homes in eThekwini’s Lakehaven project.

“FLISP has the potential to make homes in the GAP market more affordable for first-time home buyers,” says ooba CEO, Rhys Dyer. “But not many people are aware that they qualify for the subsidy or make an effort to apply for it, which is something we would like to see change.”

FLISP was introduced in 2012 by the Department of Human Settlements to assist qualifying households who have secured a bond to acquire a residential property for the first time. The aim of the initiative is to reduce the initial home loan amount to render monthly repayments more affordable. To qualify, which amounts to a grant of between R20,000 to R87,000, first-time home buyers need to earn a salary of between R3,501 and R15,000 a month, be South African citizens and have an approved home loan from a financial institution.

“ooba offers a convenient FLISP application process to home buyers who qualify for the subsidy. What distinguishes ooba from other bond originators is that through our initiative with Consumer Mortgage Management, we have a dedicated team of FLISP specialists who establish whether a home buyer qualifies for a FLISP subsidy and completes the application on their behalf,” says Dyer.

When customers apply for home loans, ooba’s goal is to identify the opportunity for them to apply for the FLISP housing subsidy as well.

“Not only does this improve your chances of getting your home loan approved, it also enables you to qualify for a better interest rate on the lower loan amount, saving you thousands of rand in interest over the repayment term,” says Dyer.

He encourages first-time buyers to consider FLISP, should they qualify. “Applying for the FLISP subsidy has never been quicker or easier and new homeowners have the peace of mind that a team of experts is managing the application on their behalf, while keeping them fully informed throughout the process.”


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