Publications
Partners
A Fin24 user would like to apply for a government-subsidised house, but his salary is too high to qualify. He writes:
I would like to apply for one of these government-subsidised houses, but my salary of R5 000 per month is over the required amount of less than R3 500 per month.
At the same time, my salary is not enough for me to get a bond or loan.
Kindly advise me on what is available for someone like me.
Abel Mngadi, head of sales and new business at FNB Housing Finance, responds:
There are two kinds of subsidies offered by government. The first subsidy is used to provide all qualifying potential homeowners with free housing.
This applies to all persons earning a household income below R3 500.
The second subsidy relates to people earning between R3 501 and R15 000.
This is called the Financed Linked Individual Subsidy Programme (FLISP).
The qualifying applicant has to apply for a loan from a bank and once approved, he or she can then apply for this subsidy.
The summary of this subsidy is as follows:
- The subsidy provides a once-off down payment (deposit). It may only be used to reduce the principal loan amount and not for any other purpose.
- The applicant must first have a loan approval from a bank and can thereafter apply for this subsidy.
It is available to qualifying beneficiaries who:
- Are SA citizens or in possession of a permanent resident permit;
- Are legally competent to contract;
- Have not received the benefit of the housing subsidy before;
- Have not owned a house before;
- Are not married or co-habiting;
- If single, must have financial dependants;
- Currently applicable to housing developments and existing houses not exceeding R300 000;
- The subsidy ranges from R87 000 (on an income of R3 501) to R10 050 (on an income of R15 000). The less you earn, the higher the subsidy and vice versa.
With a salary of R5 000 and if you qualify, you will get a subsidy of R77 550 from government.
You must first find a property within your affordability range, obtain bond approval from a bank and then apply for the subsidy.
Councillor Siyabulela Mamkeli, the City of Cape Town’s Mayoral Committee Member for Human Settlements, responds:
The City of Cape Town is pleased to inform you of our Gap Housing opportunity, for which you may qualify.
Gap housing is for people who typically earn between R3 500 and R15 000 per month.
This does not guarantee eligibility, however, as the application is subject to obtaining a bond from a bank to purchase a house, dependent on the sale price.
Purchases are done directly with the developer. There are currently two projects under construction: in Scottsdene near Kraaifontein, and in Pelican Park near Grassy Park.
There is also a social rental project in Scottsdene – the Madulammho project.
You can contact the developer of a specific development or visit your nearest housing office for more information.
Alternatively, contact the City’s Call Centre on 0860 103 089.
- Fin24
Do you have a pressing financial question? Post it on our Money Clinic section and we will get an expert to answer your query.
Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers.
Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.
I would like to apply for one of these government-subsidised houses, but my salary of R5 000 per month is over the required amount of less than R3 500 per month.
At the same time, my salary is not enough for me to get a bond or loan.
Kindly advise me on what is available for someone like me.
Abel Mngadi, head of sales and new business at FNB Housing Finance, responds:
There are two kinds of subsidies offered by government. The first subsidy is used to provide all qualifying potential homeowners with free housing.
This applies to all persons earning a household income below R3 500.
The second subsidy relates to people earning between R3 501 and R15 000.
This is called the Financed Linked Individual Subsidy Programme (FLISP).
The qualifying applicant has to apply for a loan from a bank and once approved, he or she can then apply for this subsidy.
The summary of this subsidy is as follows:
- The subsidy provides a once-off down payment (deposit). It may only be used to reduce the principal loan amount and not for any other purpose.
- The applicant must first have a loan approval from a bank and can thereafter apply for this subsidy.
It is available to qualifying beneficiaries who:
- Are SA citizens or in possession of a permanent resident permit;
- Are legally competent to contract;
- Have not received the benefit of the housing subsidy before;
- Have not owned a house before;
- Are not married or co-habiting;
- If single, must have financial dependants;
- Currently applicable to housing developments and existing houses not exceeding R300 000;
- The subsidy ranges from R87 000 (on an income of R3 501) to R10 050 (on an income of R15 000). The less you earn, the higher the subsidy and vice versa.
With a salary of R5 000 and if you qualify, you will get a subsidy of R77 550 from government.
You must first find a property within your affordability range, obtain bond approval from a bank and then apply for the subsidy.
Councillor Siyabulela Mamkeli, the City of Cape Town’s Mayoral Committee Member for Human Settlements, responds:
The City of Cape Town is pleased to inform you of our Gap Housing opportunity, for which you may qualify.
Gap housing is for people who typically earn between R3 500 and R15 000 per month.
This does not guarantee eligibility, however, as the application is subject to obtaining a bond from a bank to purchase a house, dependent on the sale price.
Purchases are done directly with the developer. There are currently two projects under construction: in Scottsdene near Kraaifontein, and in Pelican Park near Grassy Park.
There is also a social rental project in Scottsdene – the Madulammho project.
You can contact the developer of a specific development or visit your nearest housing office for more information.
Alternatively, contact the City’s Call Centre on 0860 103 089.
- Fin24
Do you have a pressing financial question? Post it on our Money Clinic section and we will get an expert to answer your query.
Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers.
Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.
