FLISP Subsidy – 7 Home Owners can save R 1,758 249.00 million on their home loan repayments!

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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.

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