Buying your first home can feel completely out of reach, especially if you earn too much to qualify for a free RDP house but too less to comfortably manage a bond on your own. That in-between space is exactly what one government programme was designed for.
MEET FIRST HOME FINANCE
First Home Finance (FHF), previously known as FLISP (the Finance Linked Individual Subsidy Programme), was introduced to make it easier for South Africans to access assistance with purchasing property.
This is a once-off, non-repayable grant from government aimed at first-time buyers who sit in what’s often called the “gap market”. You earn too much for free housing, but not quite enough to secure a home loan comfortably on your own. This subsidy is designed to close that gap.
So, who qualifies?
To be eligible:
HOW MUCH CAN YOU GET?
The subsidy works on a sliding scale, subsidy amounts generally range from around R38 878 up to R169 264, depending on your household income. The lower your income within that bracket, the higher the subsidy you’re likely to receive.
For example, households earning between R3501 and R3700 a month could qualify for subsidies in the region of R130 000, while those closer to the R22 000 ceiling might receive closer to R28 000.
WHERE THE MONEY ACTUALLY GOES
This isn’t cash handed to you directly. Instead, it’s paid straight to your bank, conveyancer, or financial institution, and can be used in several ways depending on your situation.
It can reduce the principal amount of your home loan, which lowers your monthly repayments for the life of the bond. It can also count towards your deposit, which may improve your chances of loan approval or help you access a better interest rate. In some cases, it can help cover the gap if a bank approves you for less than the property’s purchase price, or go towards costs like transfer duties and conveyancing fees.
HOW TO APPLY
You’ll typically need a signed Offer to Purchase on a property, proof of income, and either home loan approval or approval in principle from a bank, though some routes allow you to combine the subsidy with savings, a pension payout, or even stokvel funds instead.
Applications go through the National Housing Finance Corporation (NHFC), your bank, a registered bond originator, or your provincial Department of Human Settlements office. Most major banks, including Absa, FNB, Standard Bank and Nedbank, are also set up to process applications on their clients’ behalf.
You can check your eligibility for free by visiting the NHFC’s First Home Finance portal, with no registration required for that first step.
