Government Employees & First-time Buyers: Your Double Savings Could Buy You A Home

“Public Service Employees are sitting on two pots of gold — a GEHS savings and a First Home Finance subsidy. Together, they can be used as a powerful double deposit to secure your very own home.”
— Meyer de Waal, Attorney & Conveyancer, MDW INC Attorneys, Cape Town

Cape Town, South Africa — Thousands of South African public servants and first-time buyers remain unaware that they are entitled to two significant financial benefits that — when combined — can unlock home ownership without the need for traditional home loan approval.

MDW INC Attorneys and the My Budget Fitness Team have partnered with property developers and owners to make this dream a reality through an innovative Instalment Sale Agreement — a legally recognised home purchase structure in place since 1981.

THE TWO SAVINGS BENEFITS AVAILABLE TO YOU

1. GEHS Savings — Government Employees Housing Scheme
If you are a public servant not currently owning a home and paying rent, a housing savings allowance is automatically accumulated on your behalf each month.

Many employees have built up savings exceeding R100 000 or more — yet cannot access these funds because they cannot qualify for a traditional home loan.

2. First Home Finance (FLISP) Subsidy
The First Home Finance subsidy — formerly known as FLISP — is a government housing subsidy available to qualifying first-time buyers.

Employees earning between R3 501 and R22 000 per month may qualify for a substantial subsidy. Since 1 April 2022, this subsidy no longer requires a conventional home loan as a trigger and can now be unlocked through an Instalment Sale Agreement.

THE SOLUTION: THE INSTALMENT SALE AGREEMENT

An Instalment Sale Agreement, regulated by the Alienation of Land Act No. 61 of 1981, allows a buyer to take occupation of a property and pay for it in monthly instalments — much like a rental arrangement — while the purchase price is settled over an agreed period (typically 24–36 months).

Critically, once the Instalment Sale Agreement is registered against the title deed at the Deeds Office, both the GEHS savings and the First Home Finance subsidy are immediately released to the seller — reducing the outstanding purchase price and lowering the buyer’s monthly instalment significantly.

This gives the buyer a 2–3 year window to settle debts, improve their credit profile, and ultimately qualify for a home loan to finalise the purchase — all while already living in their own home.

A REAL-WORLD EXAMPLE

Consider Miss A, a public servant earning R15 000 per month, with accumulated GEHS savings of R35 000, a qualifying First Home Finance subsidy of R86 000, and a credit profile that currently prevents her from securing a conventional home loan.

Item	Amount	Monthly Payment
Purchase Price	R450 000	R4 500 pm
Less: GEHS Savings	− R35 000
Less: First Home Finance Subsidy	− R86 000
Balance of Purchase Price	R329 000
Revised Monthly Instalment (10.5% interest)		R2 879 pm
Monthly Saving for Miss A		R1 621 pm

Note: Monthly instalment calculated at the current prime lending rate of 10.5% over 20 years. An 8–10% annual rental escalation clause applies. Provision must also be made for municipal costs including rates & taxes, services and body corporate levies.

AVAILABLE PROPERTIES — SOURCED BY MDW INC

MDW INC and the My Budget Fitness Team have collaborated with selected property developers and owners to source properties specifically available for purchase under the Instalment Sale structure in the following locations:

WESTERN CAPE
Mossel Bay — Mountain View Development
More information: https://mountainviewmosselbay.co.za/campaigns/
Book a viewing with Vusi (resident estate agent): https://mountainviewmosselbay.co.za/book-a-viewing/

GAUTENG
Soweto — Protea Glen
• 1-Bedroom unit: Click here to view
• 2-Bedroom unit: Click here to view
• 3-Bedroom unit: Click here to view

Germiston — Sparrow Hawk
https://www.attorneyrealtorhub.co.za/apartment-flat-for-sale-in-germiston-central-115539530

Primrose
https://www.attorneyrealtorhub.co.za/apartment-flat-for-sale-in-primrose-115541395

Roodepoort — Rothchild Manor
https://www.attorneyrealtorhub.co.za/2-bedroom-apartment-flat-for-sale-in-roodepoort-central-115539392

Rosettenville — Cedar Valley
https://www.attorneyrealtorhub.co.za/apartment-flat-for-sale-in-rosettenville-115536549

Berea — Hillandale
https://www.property24.com/for-sale/berea/johannesburg/gauteng/5920/116912931

Randburg — Windsor East Properties

Randburg — Kensington B — Garden View
https://www.property24.com/for-sale/kensington-b/randburg/gauteng/4440/116912275

Benoni Central — Springbok Court
https://www.property24.com/for-sale/benoni-central/benoni/gauteng/2099/116917356

HOW TO GET STARTED

To explore whether you qualify and to view available properties, click on any of the property links above. These links connect you directly to the MDW INC and My Budget Fitness property sales team. Our team will assess your GEHS savings balance, First Home Finance eligibility, and identify the most suitable property for your budget and location preference.

CONTACT

Meyer de Waal | Attorney & Director meyer@mdwinc.co.za

MDW INC Attorneys, Cape Town

Website: https://mdwinc.co.za/services/

While every reasonable effort is taken to ensure the accuracy and soundness of the contents of this publication, neither the writers of articles nor the publisher will bear any responsibility for the consequences of any actions based on information or recommendations contained herein. Our material is for informational purposes.

Tagged First-time buyers, home loan