First-time home owners can unlock their dream home with the First Home Finance (formerly FLISP) subsidy. “Cash is king when it comes to buying your first home. Having a deposit ready not only strengthens your negotiating power but also secures your purchase agreement, giving you a competitive edge,” says Meyer de Waal, an attorney at MDW INC in Cape Town and a founding member of the Attorney Realtor Hub.
Get your government-backed deposit certificate upfront
First-time buyers can now obtain a pre-qualified deposit certificate directly from the government. This certificate shows the amount you qualify for in advance, making it easier to negotiate with property sellers, estate agents, and attorneys. This certificate increases your credibility and home-buying negotiation power and improves your chances of securing your dream home.
Challenges with FLISP subsidies: Why this certificate is a game-changer
“Over the past seven years, while helping first-time buyers with FLISP subsidies – now known as First Home Finance – we often come across estate agents, sellers, and attorneys who were hesitant to accept offers from buyers using these subsidies as they are concerned that the subsidy approval will cause a delay with the property transfer process,” says de Waal, who have championed this cause for first time buyers through initiatives like My Budget Fitness, www.flisp.co.za and Rent2buy www.irent2buy.co.za. However, with the First Home Finance Pre-Qualification Certificate, buyers can validate their financial readiness and ability to qualify for a deposit to buy their dream home, which removes the uncertainty and scepticism often associated with subsidy-backed purchases.
Special assistance for first-time home buyers
The Attorney Realtor Hub is a network of 15 conveyancing attorney firms, where you’ll receive expert guidance through every step of your property purchase. The process includes securing the First Home Finance subsidy, structuring your finances, negotiating sale terms, and finalising all the legal aspects of the transaction.
Through this service, you can:
Apply for the FLISP or First Home Finance subsidy as a deposit.
Get help finding a suitable property.
Negotiate terms of sale and prepare a tailored purchase agreement.
Manage all the legal and financial aspects of the purchase.
Complete the transfer of ownership and handover.
You’ll also get access to a consumer education program designed specifically for first-time buyers, including videos, brochures, and workshops that cover everything you need to know.
Who qualifies for the first home finance subsidy?
Applicants must be first-time buyers and South African citizens who have never owned property before. They should be over 18 years of age and earn between R3,501 to R22,000 per month (the gross combined income of the household). Additionally, applicants must have a financial dependent.
What deposit amount can you get from the government?
The government subsidy amount depends on your income, ranging from R38,911 to R169,265. The lower your income, the higher the subsidy. For example, a household earning R14,500 per month could qualify for a subsidy of R91,054
