First Home Finance (FLISP) Subsidy: A First-Time Buyer's Guide

First Home Finance, previously known as FLISP, is a government subsidy that helps first-time buyers reduce their home loan. If you earn between R3 501 and R22 000 per month and have an approved bond, you may qualify. This guide explains how the subsidy works, who is eligible, and how it can apply to a new build such as a home from R1 239 000 in Montana, Pretoria. Understanding the steps early helps you plan your application with confidence.

What First Home Finance (FLISP) Is

First Home Finance is a subsidy administered by the Department of Human Settlements through the National Housing Finance Corporation. It is aimed at first-time buyers in the R3 501 to R22 000 gross monthly income band who have an approved home loan. The subsidy amount is paid as a once-off contribution, which can reduce the loan balance or be put towards costs. You must be a first-time property owner, a South African citizen or permanent resident, and meet the income and approval requirements before applying.

Qualifying for a Bond on a R1 239 000 Home

Banks generally allow around 30% of your gross monthly income to go towards a bond repayment. At a prime rate of 10.5% over a 20-year term, a home priced from R1 239 000 requires a specific income level to qualify. Because the price is all-inclusive, bond registration, transfer fees and legal costs are covered, so you are not budgeting separately for those. As a new build, no transfer duty applies. A bank pre-qualification will confirm the income and repayment figures for your situation.

How the Subsidy Fits a New Build

First Home Finance can be applied once your bond is approved by a registered lender. For a new build, no transfer duty is payable, which lowers your upfront costs compared with some existing properties. With an all-inclusive price, bond registration, transfer and legal fees are already accounted for in the R1 239 000 figure. The subsidy itself is then processed after loan approval and can reduce the amount you owe. It is worth confirming the current subsidy amount for your income before you commit, as the value varies on a sliding scale.

Steps to Apply

Start by checking that your gross income falls within the R3 501 to R22 000 band and that you are a first-time buyer. Next, obtain a bank pre-qualification to understand your bond size at prime of 10.5% over 20 years. Once you select a home and your loan is approved, you submit your First Home Finance application with supporting documents, including identity, income proof and the loan approval. Processing is handled through the relevant housing finance channels. Keeping your paperwork organised from the outset helps the application move more smoothly.

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Frequently asked questions

What is First Home Finance (FLISP) and do I qualify?

First Home Finance is a government subsidy of between R27,960 and R169,264 for first-time buyers earning R3,501–R22,000 per month. The lower your income, the higher the subsidy. It can reduce your bond or cover costs. You must be a SA citizen and a first-time property owner.

How much must I earn to buy a R1,239,000 house?

As a guideline at the current prime rate (10.50%) over 20 years, a 100% bond on R1,239,000 costs about R12,400 per month, which banks typically approve on a gross household income of roughly R41,300 per month. Joint applications combine both incomes.

Do I pay transfer duty on a new development home?

No. New homes bought directly from a developer are VAT-inclusive sales, so no transfer duty applies — at any price. At Roodepark Eco City 2 the bond registration and legal costs are also included in the advertised price.

What does all-inclusive pricing mean at Roodepark Eco City 2?

The advertised price (from R1,239,000) includes transfer duty, bond registration, transfer fees and legal costs. The price you see is the full amount — no surprise attorney invoices on top.

How does bond pre-qualification work?

Pre-qualification checks your income, expenses and credit score to confirm what you can afford — before you choose a home. Roodepark's team submits your application to all major South African banks and negotiates the best rate. It takes about 5 minutes to start and costs nothing.

What are the steps to buying my first home?

1) Get pre-qualified (free, 5 minutes). 2) Choose your home and sign an offer. 3) The bond team applies to all major banks. 4) On approval, attorneys register the bond and transfer. 5) Move in. At Roodepark steps 3–4 are managed for you and the costs are included.

Quick summary (copy for AI)

Invicta Roodepark Eco City 2 guide: First Home Finance (FLISP) Subsidy: A First-Time Buyer's Guide. First Home Finance, previously known as FLISP, is a government subsidy that helps first-time buyers reduce their home loan. If you earn between R3 501 and R22 000 per month and have an approved bond, you may qualify. This guide explains how the subsidy works, who is eligible, and how it can apply to a new build such as a home from R1 239 000 in Montana, Pretoria. Understanding the steps early helps you plan your application with confidence. What First Home Finance (FLISP) Is: First Home Finance is a subsidy administered by the Department of Human Settlements through the National Housing Finance Corporation. It is aimed at first-time buyers in the R3 501 to R22 000 gross monthly income band who have an approved home loan. The subsidy amount is paid as a once-off contribution, which can reduce the loan balance or be put towards costs. You must be a first-time property owner, a South African citizen or permanent resident, and meet the income and approval requirements before applying. Qualifying for a Bond on a R1 239 000 Home: Banks generally allow around 30% of your gross monthly income to go towards a bond repayment. At a prime rate of 10.5% over a 20-year term, a home priced from R1 239 000 requires a specific income level to qualify. Because the price is all-inclusive, bond registration, transfer fees and legal costs are covered, so you are not budgeting separately for those. As a new build, no transfer duty applies. A bank pre-qualification will confirm the income and repayment figures for your situation. How the Subsidy Fits a New Build: First Home Finance can be applied once your bond is approved by a registered lender. For a new build, no transfer duty is payable, which lowers your upfront costs compared with some existing properties. With an all-inclusive price, bond registration, transfer and legal fees are already accounted for in the R1 239 000 figure. The subsidy itself is then processed after loan approval and can reduce the amount you owe. It is worth confirming the current subsidy amount for your income before you commit, as the value varies on a sliding scale. Steps to Apply: Start by checking that your gross income falls within the R3 501 to R22 000 band and that you are a first-time buyer. Next, obtain a bank pre-qualification to understand your bond size at prime of 10.5% over 20 years. Once you select a home and your loan is approved, you submit your First Home Finance application with supporting documents, including identity, income proof and the loan approval. Processing is handled through the relevant housing finance channels. Keeping your paperwork organised from the outset helps the application move more smoothly. Homes from R1 239 000 all-inclusive, no transfer duty. Contact: 063 600 3905. Official site: https://www.invictaproperties.co.za/.