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Cape Town - Bond originator ooba has joined forces with Consumer Mortgage Management to launch a new service to assist first-time home buyers with applying for their Finance Linked Individual Subsidy Programme (FLISP) as soon as their home loan is approved.
According to ooba this could save them thousands of rands in interest.
"Many first time home buyers whose salaries fall in the lower to middle income category are unaware that they may qualify for the government FLISP subsidy, which can be used as a deposit on their newly purchased home and/or to pay for the legal costs of acquiring a property," said ooba CEO Rhys Dyer.
“FLISP has the potential to make homes in the GAP market more affordable for first-time home buyers, but not many people are aware that they qualify for the subsidy or make an effort to apply for it, which is something we would like to see change."
FLISP was introduced in 2012 by the Department of Human Settlements to assist qualifying households who have secured a bond to acquire a residential property for the first time. The aim of the initiative is to reduce the initial home loan amount to render monthly repayments more affordable. It amounts to a grant of between R20 000 to R87 000.
To qualify, first-time home buyers need to earn a salary of between R3 501 and R15 000 a month, be South African citizens and have an approved home loan from a financial institution.
Dyer encourages first-time buyers to consider FLISP, should they qualify.
