MEC for Human Settlements, Safety and liaison, Helen Sauls-August has announced that an amount of R3.4 million has been spent on the finance linked individual subsidy program launched in April this year. 86 applicants have been approved so far in the province since April this year.
This programme offers down payment assistance in the form of a grant to Qualifying Beneficiaries, who are in a financial position to secure a Home Loan (Mortgage Loan) from a Lender (Bank). People earning between R3 501-R15 000 may get any subsidy amount of between R10 000 to R87 000, depending on their income. The subsidy is so flexible that those with low income will get the highest amount of the subsidy.
The Finance Linked Individual Subsidy Program, better known as FLISP subsidy would essentially serve as deposit to a prospective buyer when a home loan has already been approved by a bank (house) to encourage banks to find the balance through a Home Loan. This also offers an incentive for Developers to get involved with the provision of appropriately priced and affordable housing stock.
She has appealed to qualifying people to approach Standard Bank, FNB, ABSA and SA Home loans for assistance in getting home loans. They are the only institutions who have so far signed a memorandum of understanding with the National Housing Finance Corporation, an implementing agent of the programme. She was addressing financial institutions, estate agents, property developers in East London today.