FLISP now delinked and no longer just a mortgage option

I am elated with today’s announcement by the National Minister of Human Settlements, Mmamoloko Kubayi during a virtual briefing to National Council of Provinces (NCOP) that the Finance Linked Individual Subsidy (FLISP) has been delinked and no longer just a mortgage only option.

Essentially, as from 1 April 2022, persons who in the past could not qualify for FLISP, due to them not qualifying for a home loan or mortgage, will now be able to utilise other sources of finance to acquire a property. Amongst others, residents with a household income of R 3 501 – R 22 000 per month will be able to access FLISP through:

• the beneficiary’s pension/provident fund loan
• a co-operative or community-based savings scheme, i.e. stokvel
• the Government Employees Housing Scheme
• any other Employer-Assisted Housing Scheme
• an unsecured loan
• an Instalment Sale Agreement or Rent-to-own Agreement

This is exceptional news and a game changer for the affordable housing market. We have been advocating for this revised FLISP for years and this is a true victory.  

There has been a huge increase in both FLISP applications and approvals, with 3 695 applications having been approved by the Western Cape Department of Human Settlements (WCDoHS), since April 2020, to date. This was against a target of 1 800 between the 2020/21 and 2021/22 financial years.

Furthermore, we’ve also partnered with external role-players such as financial institutions, conveyancing attorneys and property developers, and granted them access to the Housing Subsidy System (HSS) which allows them to capture and monitor the progress of applications, which drastically improved the turnaround times for processing these applications.

We’re anticipating an influx of applications, and this is why we’re in the process of streamlining the system, so that there aren’t unnecessary and avoidable delays.

This is just further confirmation why our focus on affordable housing is extremely critical for not only Western Cape residents, but citizens throughout the country. With approximately 70% of our people employed, we understand that there are many that will never qualify for a fully State subsidised home, yet they still require some form of assistance from the State.

As the Western Cape Government, we remain committed to accelerating human settlements delivery, while promoting social inclusion through the development of integrated, resilient, safe and sustainable human settlements in an open opportunity society.