Announcement: FLISP subsidies and rent-to-own paves the way for first-time home ownership in affordable new mill park development in Bredasdorp

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The new Mill Park Development in Bredasdorp, Cape Agulhas Municipality, offers an exclusive unique opportunity for first-time buyers who already reside in the Bredasdorp or Agulhas Municipal area to realise their dream of owning their own home.

This affordable housing opportunity is coupled with a one-stop service that walks brand new buyers through every step of the buying process with end-user finance already pre-arranged with the major financial institutions.

Of newsworthiness is that this ownership-support service includes an unprecedented, combined offering of a South African Government FLISP financial subsidy, and a deferred ownership module with a Rent to Own arrangement for buyers who are almost ready to for home ownership, but just not ready yet to qualify for a home loan but may qualify soon.

Buyer support is provided for each step of this novel journey to from first engagement up to key handover, continuing for a period of 24 months thereafter, with this pioneering offering geared to open doors to those previously denied access to the property market.

One-hundred-and-six (106) houses will be constructed at Mill Park through a combined initiative of the Agulhas Municipality and the National Department of Human Settlements, with ASLA responsible for construction.

Houses are priced from R 467 600.00 for a two-bedroomed house of 43㎡  to R590 950.00 for a three-bedroomed house, of 55㎡, making home-ownership affordable for a buyer whose income is in the FLISP subsidy qualifying range.


To qualify for a home loan of R467 600.00, it is advised that the income of the buyer is more than R13 500,00 per month, with a good credit score and affordability to match the application.

To qualify for a home loan of R590 950.00, it is advised that the income of the buyer is more than R16 800,00 per month, with a good credit score and affordability to match the application.


A FLISP (Finance Linked Individual Subsidy Programme) subsidy is a once-off financial contribution made available by the South African Government to any South African citizen who has a financial dependent, is buying a home for the first time, and has a combined gross household income of between R3 501 and R22 000 per month.

The subsidy amount is linked to the buyer’s income and granted on a sliding scale with amounts ranging from R30 001.00 to R130 505.00.

As example, a household with an income of R13 500.00 per month will qualify for a R75 786.00 subsidy.

A household with an income of R16 800.00 per month will qualify for a R56 80200 subsidy.

This subsidy can be:

  • used as a deposit to reduce the home loan of the first-time buyer, and as such make it easier to qualify for a home loan, or
  • paid into a new home loan, reducing debt exposure and the monthly repayment amount.

The Mill Park property sales team will assist all first-time buyers with their home loan and FLISP applications.

Interviews will be held with each prospective buying to determine if they meet the criteria for a FLISP subsidy and a home loan or a Rent to Own structure.

Those who do qualify for a Flisp subsidy will be issued with a FLISP Voucher that can be redeemed during the home loan process.

To facilitate completion, end-user finance with the major financial institutions is already arranged.


Potential first-time buyers who don’t immediately qualify for a home loan have an alternative option to get their foot in the property door.

Rent to Own is structured to allow for a ‘tenant-buyer’ agreement whereby a house can be rented while simultaneously securing an option to buy it two years later. The purchase price of the property is “frozen” for the two-year period i.e. there is no property price escalation during this lease term.

  • This two-year Rent to Own period allows the tenant-buyer the opportunity, with coaching and support, to improve their creditworthiness. Rental, rates and taxes are paid monthly, as the tenant demonstrates they can meet the obligations of a homeowner, including future home-loan repayment.
  • A unique “spring-board” benefit is that during this rental period almost half of the rental paid per month will be saved for the Rent to Own tenant-buyer.
  • With creditworthiness and affordability established they will not only be able to be in a better situation to obtain a home loan before the expiry of the 24-month rental term, but also the full deposit saved will be deducted from the purchase price. A deposit reduces the home loan amount required and usually enables a buyer to negotiate a lower home loan interest rate.
  • As the Rent to Own concept is now also recognized as structure for a FLISP subsidy under the National Housing Code that came into effect in 1 April 2022, the first-time buyer will also have the opportunity, if the purchaser qualifies, to apply for a FLISP subsidy at the end of the Rent to Own term and use the subsidy as a second deposit.

These two deposits will have a fantastic reduction of the home loan of a first-time buyer and make it much easier and affordable to own your own first home,” says Anele Matakane of the My Budget Fitness and the MDW INC Property Sales Team.


Buying a first home is most likely the biggest investment a buyer may ever make, and also at the same time, the biggest debt they will ever sign up for.

Buying a property for the first time can be daunting with the process fragmented amongst many service providers.

To smooth the way and champion new buyers to achieve their home-ownership dream Mill Park pioneers a one-stop service offering.

From Day One to the handover of the keys of their new home buyers will be assisted by the Mill Park One-stop Property Team.

This one-stop support facilitates purchase completion by bringing the services of the usual seven or eight different service providers under one roof.

Instead for a first buyer of individually dealing with estate agents, the property developer, mortgage originators, financial institutions, implementation agencies for the FLISP subsidy application, transfer and bond registration attorneys and the Deeds Office, up to registration of transfer of ownership, the buyer will only liaise with the qualified one-stop team.

A personal relationship will be established with each prospective buyer who will deal with the same team of people from beginning to end.


Visit the Mill Park website at to:

  • Register for the Interested Buyers List & pre-qualify themselves online.
  • All interested buyers can register their details in advance to receive more information about the Mill Park Development, including news of the show house viewing dates, and to receive a comprehensive digital Mill Park Home Ownership Guide that guides applicants through the entire process of home ownership.
  • Get Financially Fit | if you have a low or bad credit score –
    • sign up for a budget fitness and credit score improvement service to get you financially fit to qualify for a home loan or a Rent to Own structure.
      Click here to register.

 “We assisted a lady who applied for a home loan with a judgement against her name. The home loan was declined.  12 months later, her home loan was approved, and she is now a proud homeowner after she followed the budget and credit score improvement services”, says Anele Matakane, of the My Budget Fitness and The MDW INC Mill Park One-Stop Property Sales and Finance Team.

Meyer de Waal

23 June 2022.

This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)

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