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

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.