Making your dreams a reality

Making your dreams a reality

Your dream of owning your first home is within your reach! Here are some easy, WalletWise steps to help you find affordable options.

There are some great options for first-time home owners to finance buying their first home. This means that owning your own property is a dream that can become a reality sooner than you may think is possible.

Benefits to you and your family

Owning a home allows you to have and give your family the steadfastness of living in a community longterm. As the area develops, so also will the cost of your property. When you invest in property for long term, you can make your investment valuable for both resale or rental purposes in the future.

WalletWise tip

Unlock the key to your new home and future potential with affordable home financing options. Contact your bank about your options, and take action to own your dream home.  

Home financing is easier than you think

You could consider these three main options to make your dream of owning a home a reality.

1. A grant scheme

You could get assistance from the government with a housing grant through a Finance linked Individual Subsidiary programme (FLISP). The subsidiary is paid as a lump-sum once-off payment towards the cost of your first home purchase. To qualify, you will need to have a joint household income of between R3 500 to R22 000 a year. Once your bond is approved, you then approach the National Housing Finance Corporation for the subsidy or the nearest local municipality. The FLISP subsidiary amount ranges between R27 960 and R121 626, depending on your monthly income and affordability. Here is a list of FLISP contact points.

2. Affordable housing loans

These loans are offered to people who earn single or joint income between R3 500 and R24 300. The benefits may include finance and no deposit, a choice between a fixed or variable interest rate, an access bond facility should you require additional funds as well as homeownership courses that can give you insight into what it means to own your own home.

3. Pension-backed lending

If you have been saving for your pension, you can give yourself a pat on the back because it gives you an extra option – that’s what we call being Wallet Wise! You can get a home loan that is backed or guaranteed by your pension. The benefits of this loan include no bond registration costs or property assessment fees. You can use this loan to buy vacant land, build a house or even improve your current property. The payments will be deducted from your salary or wages, and then paid to the bank for your convenience. You also have the option to take out a second loan after paying for the first three months, which is helpful for renovations.