Did you know that the Department of Human Settlements offers a once off finance subsidy for first-time home owners? If you earn, or your household income is, between R3,501 and R22,000 per month, and you have never purchased a home or received any other government housing benefit, such as an RDP house, you may be eligible for this financial assistance. This subsidy aims to make homeownership more accessible for low-to-middle income earners. To be eligible for the First Home Finance subsidy, you must meet the following criteria:

• You must be a South African citizen or a permanent resident with a valid permit.
• You must be over 18 years old and legally competent to contract.
• You must be a first-time homebuyer and have never received any government housing subsidy before.
• Where the cost of purchasing or building the home is in excess of the qualifying subsidy, you must have an ‘Approval in Principle’ fomr a Registered Home Loan Provider, or an unsecured loan from a Registered Credit Provider in South African, for the outstanding amount.

If you meet the above criteria, you can apply for the subsidy and take a significant step towards owning your own home.

The National Housing Finance Corporation (NHFC) is a state-owned entity dedicated to providing innovative and affordable housing finance solutions.  By offering various financial products and services, the NHFC helps bridge the gap between the demand for affordable housing and the availability of suitable financing options.

Isn’t it fascinating how these initiatives are designed to support and uplift communities by making homeownership more attainable?

Applying for the First Home Finance subsidy, involves:

1. Pre-Approval for a Home Loan: Firstly, ensuring you are pre-approved for a home loan. This is a necessary step, if the grant amount is less than the cost of the new home, before applying for the subsidy.
2. Visiting the Local Human Settlements Office: You can apply for the subsidy at your local Human Settlements office. They will provide you with the necessary forms and guidance.
3. Online Application: You can apply online via the First Home Finance Application portal. This can be a convenient option if you prefer to handle the process digitally.
4. Contact the NHFC: For additional assistance, you can contact the National Housing Finance Corporation (NHFC) at 010 085 2199.
5. Complete the Application Form: Fill out the application form with all required details. Make sure to provide accurate information to avoid any delays in processing.
6. Submit Required Documents: Along with the application form, you will need to submit various documents, such as proof of income, identification, and proof of pre-approval for a home loan.
7. Follow Up: After submitting your application, follow up with the Human Settlements office or the NHFC to check the status of your application and ensure all requirements are met.

Now you too can make the dream of owning your own home, a reality!