The Institute of Estate Agents of SA (IEASA) Western Cape has been actively involved in educating the public and estate agents about the Finance Linked Individual Subsidy Programme (FLISP), a home loan subsidy for those whose gross combined household income was between R3501 to R15 000 at the time of the home loan approval.
Time is running out to submit applications and Annette Evans, general manager of the Institute, Western Cape, asks estate agents to notify all of their clients who purchased a property from March 2015 to date, to submit a FLISP application before the end of March 2016. (These retrospective dates apply purely to the Western Cape Province.)
The good news is that any subsidy granted via this programme by the Department of Human Settlements exists to encourage home ownership and will never need to be repaid. This is a huge opportunity for agents to offer a value added service to their clients, said Evans.
“It is hard to believe with all the pressure on home owners that there is still a ray of sunshine somewhere and it comes in the form of a government FLISP subsidy for first time home buyers and current new home owners,” said Evans.
In addition, the Department of Human Settlements will also relax their income requirement by applying the income of the applicant at the time of bond approval and not the income as on date of the FLISP application. Existing home buyers should submit their FLISP applications before the end of March 2016, which is the end of the budget financial year.
This initiative can be a huge boost for new home owners – considering the interest rate hikes over the past 12 months.
The qualifying criteria are that:
- The current home owner took transfer from March 2015 to date, or whose home loan has already been approved but they have not yet taken transfer;
- The owner has a gross combined household income between R3,501 and R15,000 at the time of the home loan approval;
- The approved home loan should be from one of the four major SA banks and SA Home Loans; and
- They must be a first time home owner and should, if they are single, have dependents.
Applicants must be South African citizens or hold valid permits. Home owners and home buyers can apply directly to the Department of Human Settlements or make use of a paid-for-service, www.flisp.co.za.
IEASA hold regular property updates for property professionals – to keep abreast of these, visit www.ieasa.org.za or the regional websites for further information.