FLISP Subsidy – 7 Home Owners can save R 1,758 249.00 million on their home loan repayments!
Rent2buy – How to do your own Rent2buy calculations
July 7, 2015Real Estate Investor Magazine / Rode Property Conference
August 12, 2015
This week alone we assisted many home owners to save millions on their home loan repayments.
The FLISP subsidies to be paid into their home loans will help 7 home owners, who can save up to R 1,758 249.00 in total on their home loan repayments. We processed many more – but the 7 are a good example.
Fazlin (real name withheld):
-
- Who earns R9 900.00 per month, qualified for a 100 % home loan of R355 000 and opted for a 30 year home loan repayment.
- She can receive a FLISP subsidy of R50 575.00.
- If she was to pay off her bond over 30 years, prior to the FLISP subsidy, she would pay back the capital loan of R355 000.00 plus interest of R 862 069.00 resulting in a total repayment over 30 years of R1 217 069.00.
- If her FLISP subsidy of R 50 575.00 is paid into her bond account, and she continues to pay back the same initial instalment to the bank, she will pay back her home loan in 14 years and 11 months and save R514 520.00 on her home loan repayments.
Attached are the calculations of actual FLISP transactions processed the past few days:
| Name (real names withheld) |
Bond amount | Salary | FLISP subsidy | Original repayment over full bond term All 20 years (* 30 years) |
Time/Years saved on bond repayment | Saving | Total Savings |
| Filoe | R473 000 | R11 000 | R43 000 | R1 095 492 | 4 years & 5 months | R237 493 | |
| Elroy | R150 000 | R3 960 | R84 650 | R371 587 | 15 years & 2 months | R197 622 | |
| Phineas | R485 000 | R13 500 | R29 425 | R 1 201 467 | 3 years and 5 months | R178 167 | |
| Fazlin | R355 000 | R9 900 | R50 575 | R1 217 069 (*) | 13 years & 11 months | R514 520 | |
| Sarah | R300 000 | R8 700 | R57 625 | R473 175 | 8 years & 2 months | R247 320 | |
| Laine | R415 000 | R13 300 | R30 600 | R1 028 059 | 4 years | R177 845 | |
| Piet | R480 000 | R12 500 | R35 300 | R1 189 081 | 4 years | R205 282 | R1 758 249.00 |
BENEFITS TO BANKS & LENDING INSTITUTIONS
When we approached various lending institutions, we were told by many that ‘We do not deal with FLISP, it is a Government Subsidy”, but once we started showing them the benefits of a subsidy paid into a home loan, they soon changed their attitude as the FLISP subsidy, once paid into the bond account, reduces the risks for a bank.
Above-mentioned subsidies would improve and reduce the risk of the Bank/Lender as follows:
| Name(real name withheld) | Bond amount
|
FLISP subsidy | % of Loan to Value improvement | Previous exposure |
| Filoe | R473 000 | R43 000 | 9% | 100 % |
| Elroy | R150 000 | R84 650 | 56 % | 100% |
| Phineas | R485 000 | R29 425 | 6% | 100% |
| Fazlin | R355 000 | R 50 575 | 15% | 100% |
| Sarah | R 300 000 | R 57 625 | 19% | 100% |
| Laine | R415 000 | R30 600 | 7% | 100% |
| Piet | R 480 000 | R35 300 | 7% | 100% |
Our aim is to save first time home buyers even more.
FOR NEW HOME BUYERS WHO EARN BETWEEN – R3501 – R15 000
To register for a FLISP subsidy application – NB – You must have a prior home loan approval – go to www.flisp.co.za and register.
FOR EXISTING HOME OWNERS WHO EARN BETWEEN – R3501 – R15 000
In the Western Cape we can assist with applications if the owner took transfer not longer than 12 months ago – and in some other provinces they allow a shorter period after transfer. Go to www.flisp.co.za and register.
