FLISP, the Finance Linked Individual Subsidy Programme, is South Africa’s housing subsidy that helps qualifying first-time buyers bridge the “gap” between social housing and conventional bank finance. In 2022, it was rebranded to First Home Finance (FHF) and is administered by the National Housing Finance Corporation (NHFC) under the Department of Human Settlements. The subsidy reduces the size of your home loan, boosts your deposit, or covers transfer/registration costs so you can afford your first home.
Who qualifies in 2025?
You may qualify if you meet all of the following baseline criteria:
- Income band: Gross household income R3,501–R22,000 per month (the “gap” market). Provinces and lenders use the same national band.
- Citizenship/residency: South African citizen or permanent resident, 18+ and legally competent to contract. (Western Cape Government)
- First-time buyer: You’ve never owned residential property and haven’t received a government housing subsidy before. If single, you must have at least one financial dependent; otherwise, being married or cohabiting also qualifies.
- Finance in place: You have approved finance for the purchase, usually a home loan approval. Since policy updates, other forms of finance can also qualify (see below).
How much is the subsidy?
The subsidy is means-tested: lower incomes receive a higher amount, tapering as income rises within the band. Exact “quantum” tables are published by lenders and NHFC partners; for example, 2024/25 guides show the sliding scale used in practice. (Expect the amount to be paid once-off toward your transaction, not as a monthly grant.)
What can the subsidy pay for?
First Home Finance is flexible. It can be used to:
- Increase your deposit (reducing the loan and monthly repayment);
- Cover transfer and bond registration costs (introduced with the 2022 updates);
- Reduce the principal of your approved home loan.
Important policy updates you should know (still applicable in 2025)
- More than just a bank bond: Since April 2022, approved alternative finance also qualifies, e.g., pension/provident fund loans, stokvels, the Government Employees Housing Scheme, employer-assisted housing, unsecured loans, instalment sale or rent-to-own agreements.
- Transaction costs covered: Attorney transfer and bond registration fees can be covered by the subsidy, easing upfront cash demands.
The 2025 application routes
You can apply after you have finance approval (or qualifying alternative finance) via any of these channels:
- NHFC First Home Finance online portal – register and submit documents.
- Provincial/metro Human Settlements offices – many provinces publish service pages and counters (e.g., Gauteng, Western Cape). (Gauteng Government, Western Cape Government)
- Through your bank or bond originator, many lenders assist with FHF applications alongside the home-loan process.
Documents you’ll typically need
- Proof of identity and marital status (ID, marriage certificate, divorce order, or customary-law affidavit);
- Proof of dependants (if applying as a single applicant);
- Proof of income (recent payslips and bank statements);
- Approval in principle/bond grant or other qualifying finance confirmation;
- Deed of Sale/OTP for the Property.
Step-by-step: From offer to subsidy in practice
- Check eligibility (income band, first-time status).
- Get pre-approved for a home loan (or secure alternative qualifying finance).
- Sign an offer to purchase with a suspensive condition for finance and, if desired, approval for subsidy.
- Apply for First Home Finance via the NHFC portal/province/lender channel and upload documents.
- Compliance & approval – the authority verifies your status and issues an award.
- Subsidy is paid to the conveyancer or lender to settle costs, reduce the loan, or bolster your deposit at registration.
Practical tips for buyers in 2025
- Use the portal early: Register on the NHFC portal as soon as you have pre-approval to speed up document checks.
- Budget with a buffer: Even with FHF covering some costs, keep a contingency for rates clearances, moving, and minor fixes.
- Compare finance options: Given the broader eligibility (stokvels, GEHS, employer schemes), compare the total cost of credit before choosing the route.
- Mind provincial nuances: Provinces provide local helpdesks and may have process variations—check your province’s Human Settlements website. (Gauteng Government, Western Cape Government)