Introducing First Home Finance

First Home Finance, previously known as FLISP, is tailored for South African first-time home buyers with lower income or imperfect credit records.

This government initiative provides subsidies between R30 001 and R130 000 depending on your monthly income, making home ownership far more accessible to many families nationwide.

The minimum required credit score for a bank-issued home loan is typically 610, but with the First Home Finance subsidy, those below this mark may still qualify.

Qualifying salaries range between R3 501 and R22 000 per month, and you must not have owned a residential property before or previously benefited from a government housing subsidy.

This subsidy can be used as a deposit or paid directly into your bond, reducing both your repayment period and the interest you pay over time.

Step-by-Step: How to Apply

Start by ensuring you meet eligibility requirements, including South African citizenship or permanent residency, income range, and first-time home buyer status.

Gather your documents, such as proof of income, identification, and confirmation of dependents or marital status, if applicable.

Complete the application online via ooba Home Loans; the process is designed to be straightforward and takes just a few minutes.

Your application is submitted directly to the relevant authorities, with ooba managing paperwork and monitoring progress for you.

Once approved, your subsidy will be paid either as a deposit or a lump sum directly into your home loan, according to your preference.

Highlights: What Makes First Home Finance Great?

One major advantage is the ability to secure a home loan despite having a low credit score, with the subsidy enhancing bank confidence in your application.

The subsidy size increases the lower your income, ensuring that assistance is focused where it’s most needed.

You can choose to use the subsidy as a deposit, which could significantly reduce your required monthly repayments and total interest paid.

Alternatively, the lump sum payment option is ideal for those wanting to pay off their home loan more quickly, reducing the full loan term.

The online process is user-friendly, ensuring a convenient, guided journey for first-time buyers who may feel overwhelmed by the process.

Potential Drawbacks to Consider

Income and other criteria are strictly enforced, so those above the salary cap or with prior government housing assistance will not qualify.

Processing times depend on both your application specifics and current government processing speed, which can be unpredictable at busy times.

The programme is only available for first-time home buyers, making it inapplicable for anyone who already owns fixed residential property.

Some applicants may still struggle to meet bank requirements even with the subsidy, especially if their credit profile is particularly poor.

The maximum subsidy—while generous—may not cover full deposit needs in high-value property areas, limiting choices for some buyers.

Verdict: Right for You?

First Home Finance opens doors for South Africans facing financial barriers to home ownership. If you meet the basic requirements, this subsidy can make a real difference.

It’s an excellent solution for individuals with modest incomes and those rebuilding credit, offering a pathway to home ownership without overwhelming bureaucracy or red tape.