Affordable Housing Options

Millions of South Africans, particularly in the low income earning segment, dream of owning their own home.  Now these dreams are becoming a reality, thanks to a number of affordable housing options:

Finance Linked Individual Subsidy Programme (FLISP)
If you qualify, the government may grant you a housing subsidy through the Finance Linked Individual Subsidy Programme (FLISP). This subsidy is a once-off lump sum payment towards the cost of your house.  In order to qualify you must:

  • Earn a joint income of between R3 501 to R15 000 per month and be a first time home buyer.
  • The once-off FLISP subsidy amount ranges between R10 000 and R87 000, depending on your monthly income. The maximum price of a property that can be financed through FLISP depends on what you can afford.
  • Once the bond amount is approved, you will have to approach the National Housing Finance Corporation for the subsidy, or the nearest Local Municipality.

The Affordable Housing Loan
Standard Bank offers this home loan to individuals earning a single or joint gross monthly income of up to R18 600. Benefits include:

  • 100% Finance and no deposit required
  • The choice between a fixed or variable interest rate
  • An AccessBond facility should you require additional funds

Pension Backed Lending
Standard Bank's Pension Backed Home Loan (PBL) is an affordable home loan, guaranteed by your pension fund, which offers the following benefits:

  • There are no bond registration costs or delays and no property assessment fees
  • You can use a PBL loan to buy vacant land, build a house or improve your current home
  • The repayments are conveniently deducted from your salary or wages and paid to the bank
  • You may apply for a second loan after paying the first loan for at least three months

Your dreams can come true!

Talk to your bank about the various affordable housing options available and take the first step towards owning the home of your dreams!

Next week: How to buy a home