Applying for an individual housing subsidy

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[edit] Description

An individual housing subsidy is a government grant for individuals who want to become owners of a serviced stand. It allows the beneficiary to enter into a house building contract, or to purchase an existing improved residential property that is not part of an approved housing subsidy project. This subsidy also helps those who wish to increase their subsidies by accessing credit, as well as those who do not qualify for credit.

Who can apply?

  • South African citizen or person with a permanent residence permit.
  • Married or living with a long-term partner.
  • Single persons over 21 years of age who have dependants.
  • Monthly income of the entire household is R3 500 or less.
  • Those who have not owned residential property before (exceptions apply).
  • Disabled applicants applying for special variations (medical certificate required).

How much is an individual housing subsidy worth?

It depends on how much your gross (before deductions) monthly household income is.

  • If your household income is less than R1 500, you are eligible for a subsidy of R36 528. You do not have to repay this subsidy as it is not a loan.
  • If your household income is more than R1 500 and less than R3 000, you are eligible for a housing subsidy of R34 049. You do not have to repay this subsidy as it is not a loan.
  • If you can prove that you are disabled or health stricken, as long as your household income is less than R3 500 you are eligible for a housing subsidy of R36 528, plus a set variance amount to pay for the cost of any extra features your house may need, for example, a ramp for wheelchair access.

For more information, contact the Department of Housing.

[edit] Steps to follow

  • Complete an application form that is only available from the Provincial Housing Department, banks and municipalities.
  • Take the form to the conveyancer to complete Section G.
  • Take the form to the lender or financial institution to complete Section H in the case of credit-linked applications.
  • Take the form to the contractor to complete Section I in the case of newly constructed houses.
  • Take an oath at a Commissioner of Oaths
  • Attach all confirmation documentation, e.g.identity document, marriage certificate, birth certificate, proof of income, and deed of sale.

[edit] Legal framework

The Housing Act.

[edit] Service standard

There is no service standard.

[edit] Cost

The service is free.

[edit] Forms to complete

Application for an individual housing subsidy

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