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), which can be used as a deposit on their new home purchased, or to pay for the legal costs of acquiring a property.
“FLISP has the potential to make homes in the GAP market more affordable for first-time home buyers, but not many people are aware that they qualify for the subsidy, or make no effort to apply for it, which is something we would like to see change,” says Dyer.This is according to ooba CEO, Rhys Dyer, who says in line with this, ooba has joined forces with Consumer Mortgage Management (Pty) Ltd 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.
This could save first-time buyers thousands of rands in interest, says Dyer.
“FLISP has the potential to make homes in the GAP market more affordable for first-time home buyers, but not many people are aware that they qualify for the subsidy, or make no effort to apply for it, which is something we would like to see change,” he says.
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. Through our initiative with Consumer Mortgage Management (Pty) Ltd, we have a dedicated team of FLISP specialists who establish whether a home buyer qualifies for a FLISP subsidy and complete 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 rands in interest over the repayment term,” says Dyer.
He says he encourages first-time buyers to consider FLISP, should they qualify.
“Applying for the FLISP subsidy has never been quicker or easier, and new home owners have the peace of mind that a team of experts are managing the application on their behalf, while keeping them fully informed throughout the process,” says Dyer.
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