The Government made available a subsidy to assist first time home buyers to buy their own homes, once you qualified for a home loan.
To qualify for a Flisp Subsidy, you need to be:
- A First time home buyer
- Must earn between R3 501 – R22 000
- Your bond must already be approved
- If you already own you own home – you must apply within 3 – 12 months for the subsidy after transfer of the property onto your own name
- Never received a subsidy before
- Have a dependent
- Be a South African Citizen or have a permanent residency permit
What can I use the subsidy for?
You can use it as:
- A deposit for your new home
- To pay the transfer or bond costs
- To pay into your home loan to bring down the monthly payments
A home loan is one of the best ways to assist you to buy your own home – by getting finance from a bank to lend you money to pay for the property you want to buy.
Will the bank give me a loan?
Your credit profile:
- The bank will look at your past credit profile – that is how you have been paying and managing your debt over the past 12 to 24 months
What can you afford?
- The bank will look at your income and your monthly expenses and your current debt repayment obligations – and work out – what is the amount that you are comfortable to pay back to the bank every month on the home loan. Usually a home loan takes 20 years to be paid back, but it is recommended to pay it back faster.
- If there are two buyers, then your joint income will be used for the calculation.
- If you are married in community of property, both parties must apply the same time.
- If you do not have a deposit available, you can apply for 100 % home loan.
- It is however best if you have a deposit available as it will help you to negotiate the best possible home loan and interest rate with the bank.
- A Flisp subsidy can also be used as a deposit, if you are a first time buyer and qualify for the subsidy.
- Also have money available to pay for the legal fees – the transfer and bond registration fees. To calculate these fees, go to www.avidfirefly.co.za
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How do I start?