Quick Facts

• Free once-off government subsidy (not a loan)
• For monthly income between R3,501 and R22,000
• Subsidy amounts: R38,878 to R169,264
• Application takes about 7 days to process
• Must have home loan pre-approval first

What Is First Home Finance?

First Home Finance (formerly called FLISP) is a government subsidy. It helps first-time buyers get their own home.

The Department of Human Settlements created this programme. It is for people who earn too much for a free RDP house. But they earn too little to afford a home loan alone.

This is NOT a loan. You do not pay it back. It is a once-off payment from the government.

How It Works

You apply for a home loan first. Once the bank approves your loan, you apply for First Home Finance. The government gives you the subsidy money. This money goes to the bank or the transfer attorney.

Lower your monthly payments. Make it easier to get loan approval. Help cover upfront costs like transfer fees.

✅ Who Qualifies for First Home Finance?

You must meet ALL these requirements:

Age and Citizenship

• Be 18 years or older
• Be a South African citizen with valid ID
• OR be a permanent resident with valid permit
• Be able to sign legal contracts

Income Requirements

• Earn between R3,501 and R22,000 per month
• This is your total household income
• Include your partner’s income if you are married
• Include government housing allowances

Family Status

You must be ONE of these:

• Married (by civil or customary law)
• Living together with a partner (cohabiting)
• Single with financial dependants (children you support)
• Single military veteran (special case)
• Single aged person (special case)

First-Time Buyer Requirements

• Never owned property before (checked on Deeds Register)
• Never received any government housing subsidy
• Never benefited from RDP or BNG houses
• Property was not repossessed in the past

Home Loan Requirement

You MUST have one of these:

• Approval in Principle for a home loan
• Approved home loan from NCR-registered bank
• Approved unsecured loan for property purchase

How Much Money Will You Get?

The subsidy amount depends on your monthly income. Lower income means higher subsidy. This helps people who need the most support.

Subsidy Amounts (as of December 2024)

Monthly Income	Subsidy Amount
R3,501 – R7,000	R169,264
R7,001 – R10,000	R130,000
R10,001 – R15,000	R87,000
R15,001 – R18,000	R65,000
R18,001 – R22,000	R38,878

Note: These amounts may change each year. Check with NHFC for current rates.

Real Example

Three Ways to Use Your Subsidy

Use	How It Helps
As a Deposit	Pay the shortfall if the bank does not approve 100% loan
Reduce Loan Amount	Lower your monthly home loan payments
Pay Legal Fees	Cover transfer costs and bond registration fees

✅ Step-by-Step: How to Apply

Step 1: Get Home Loan Approval

Apply to one of these NCR-registered lenders:

• Standard Bank (0860 123 000)
• ABSA (0860 008 600)
• FNB (087 575 9405)
• Nedbank (0860 555 111)
• Capitec (0860 102 043)
• SA Home Loans (0860 724 663)
• African Bank (0860 110 055)

Get “Approval in Principle” letter. This shows the bank will likely give you a loan. You need this letter before you apply for First Home Finance.

Step 2: Download the Application Form

Get the form from:

• NHFC website: www.nhfc.co.za
• Department of Human Settlements: www.dhs.gov.za
• Your local municipality office
• Provincial Human Settlements office

Step 3: Gather Required Documents

Make certified copies of all documents. See next section for full list.

Step 4: Complete the Application Form

Fill in all sections clearly. Sign where required. Include your partner if you are married. Check all information is correct.

Step 5: Submit Your Application

Submit to ONE of these places:

Where to Submit	Contact Details
NHFC	010 085 2199 [email protected]
Your Local Municipality	Visit housing department in person
Provincial Department	Check www.dhs.gov.za for provincial contacts
Your Bank	Some banks submit on your behalf

Step 6: Wait for Processing

Processing takes about 7 working days. NHFC will check your documents. They verify with the Deeds Office. They confirm you never owned property before.

Step 7: Receive Approval

If approved, NHFC sends approval letter. The subsidy money goes directly to your bank or transfer attorney. You do not receive cash.

Timeline Overview

Stage	Time
Home loan pre-approval	24-48 hours
Gather documents	1-3 days
Submit application	1 day
NHFC processing	7 working days
Total time	2-3 weeks

Required Documents Checklist

You need CERTIFIED copies of all documents. Get them certified at:

• Police station
• Post office
• Bank
• Lawyer’s office
• Commissioner of Oaths

Essential Documents (Everyone Needs These)

Additional Documents (If Applicable)

✅ What Can You Buy With First Home Finance?

You have three options for using your subsidy:

Option 1: Buy Existing Property

Buy a house that already exists. This can be:

• A new house (never lived in before)
• An old house (previously owned)
• A flat or apartment
• A townhouse
• An RDP house (if no restrictions)

Option 2: Buy Vacant Land and Build

Buy a serviced residential stand. Then build a house on it.

Requirements:

• Stand must have water connection
• Stand must have electricity connection
• Stand must have sewerage connection
• Builder must be NHBRC-registered
• You need a building contract

Option 3: Build on Land You Own

Build a house on land you already own.

Requirements:

• Land must be serviced (water, electricity, sewerage)
• You must own the land with Title Deed or PTO
• Builder must be NHBRC-registered
• Building plans must be approved

What You CANNOT Buy

Special Property Types

Property Type	Can You Use First Home Finance?
RDP House	Yes – if no sale restrictions
BNG House	Yes – if no sale restrictions
Sectional Title (Flat)	Yes – with Title Deed
Share Block	Yes – check with NHFC first
Tribal Land (PTO)	Yes – with valid PTO certificate

🚨 SCAM WARNING: Protect Yourself from Fraud

CRITICAL: First Home Finance is 100% FREE. You NEVER pay upfront fees.

Common First Home Finance Scams

Red Flags to Watch For

Red Flag	What It Means
Requests upfront payment	SCAM – First Home Finance is free
Promises guaranteed approval	SCAM – Nobody can guarantee this
Contacts via WhatsApp	SCAM – NHFC uses official channels only
Offers “express service”	SCAM – All applications take 7 days
Asks for PIN or password	SCAM – Never share these
Uses Gmail or Hotmail address	SCAM – Official emails end in .gov.za
Poor spelling and grammar	WARNING – Government documents are professional
Pressure to act immediately	SCAM – Legitimate processes allow time

How to Protect Yourself

Need Help? Contact These Organisations

National Housing Finance Corporation (NHFC)

Department of Human Settlements

Home Loan Providers

Bank	Contact Number
Standard Bank	0860 123 000
ABSA	0860 008 600
FNB	087 575 9405
Nedbank	0860 555 111
Capitec	0860 102 043
SA Home Loans	0860 724 663
African Bank	0860 110 055

Consumer Protection Bodies

Frequently Asked Questions

First Home Finance can make homeownership possible for thousands of South Africans. If you earn between R3,501 and R22,000 per month, this subsidy could save you hundreds of rands every month on your home loan payments.

Start with these steps:

• Check you meet ALL the requirements
• Apply for home loan pre-approval first
• Gather all required documents before you start
• Apply directly to NHFC or your municipality
• Never pay any upfront fees – it is a scam

Remember: First Home Finance is completely FREE. If anyone asks for money, report them immediately to SAFPS on 083 123 7226.

With proper planning and the right information, you can achieve your dream of owning your first home in South Africa.