Assisting the most vulnerable in our society, particularly for low-income applicants who want to buy a residential property for the first time, is a primary priority for the Western Cape Department of Human Settlements. It is for this reason that we have three categories of housing subsidies available - we recognise that different people will qualify for different subsidies, as their needs are not all the same.

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These categories are the Non-credit linked, credit linked and Finance Linked Individual Subsidy (FLISP). Each category is unique, caters for a specific group and one of the biggest benefits is that the subsidy isn't a loan and you don't have to pay it back.

In the case of the Non-credit linked subsidy, this is available to persons earning R0-R3 500 per month to buy an existing house or plot that must be linked to the construction of a house. In this instance, the person qualifies for a subsidy of R168 852.00 and the difference in the selling price if any is financed from another source.

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The normal qualifying criteria applies with the additional Western Cape requirement that person applying must be on the Housing Demand Database (HDD) for a period of 10years in the Metro and 5 years for non-Metro areas. It is critical to note that priority will be given to those who are older than 40 years, persons with disabilities, those on the HDD for 15 years and longer, along with backyard dwellers. Property owners who have also acquired an erf without State assistance may also apply if they conform to the other criteria.

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When it comes to the credit-linked subsidy, there must be a loan from a recognised financial institution. As an example, this means if a person is planning to buy a house for R200 000, they will qualify for a subsidy of R 168 852.00 and the balance must be financed via a bank.