HOUSING SUBSIDIES
Qualification criteria
To qualify you must:
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be a South Africa citizen
be 21 years or older
be married or habitually cohabiting with a partner
be single and have financial dependants
not earn more than R7 000 per month, per household
have never received a government subsidy before
have never owned a house in the past.
Essential documents
When you apply, you are required to produce the following:
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certified copy of applicant's identity document (ID)
certified copy of spouse's ID
certified copy of marriage certificate (if married)
divorce decree ( if divorced)
certified copies of birth certificates of all dependants/ children
proof of income if employed (salary advice/ pay slip)
You can go to the Provincial Housing Department or local housing municipality office to apply.
Individual and Project linked
This subsidy is available to individual beneficiaries who want to buy an existing house or a stand
linked to a house building contract in the market. This subsidy is available on first come first served
basis and can be credit or non-credit linked.
Income category Previous
subsidy
R0 - R1 500
R 31 929
R1 501 - R3 500 R29 450
Aged, disabled or R31 929
health stricken R1
501 - R3 500
R0 - R3 500
R29 450
New subsidy
Contribution
Product price
R36 528
R34 049
R36 528
R0
R2 479
R36 528
R36 528
R36 528
R34 049
Institution must add At least R36 528
capital
Consolidation Subsidy
If you are living in an area or a serviced stand that the government sold to you, you then qualify for a
consolidation subsidy and you will receive, R14 102 for building the top structure on the enhancement
of your existing house on the property. If you opt for a contractor to build your house, you will be
required to pay the R2 479 as your contribution.
Income category Previous
subsidy
R0 - R1 500
R18 792
R1 501 - R3 500 R16 313
Consolidation
R18 792
New subsidy
R21 499
R19 020
R21 499
Contribution
Product price
R2 479
R21 499
R21 499
R21 499
Subsidy: Aged,
disabled or health
stricken R1 501 R3 500
Rural Subsidy
This subsidy is available to beneficiaries who only enjoy functional tenure rights to the land they
occupy. This land is normally in rural areas and belongs to the state therefore it is governed by
traditional authorities.
Income category
R0 - R1 500
Previous
subsidy
R29 450
New subsidy
Contribution
R34 049
Product price
R34 049
ARA - Affordable Rental Accommodation
This subsidy is for people who are living in hostels, which are being converted to family units and
Individual (single) units. Beneficiaries have a choice of choosing either a single unit or a family sized
unit, according to their specific housing requirement.
Income category Previous subsidy New subsidy
Family units any
level of income
Individual units
(per bed) any level
of income
Contribution
R7 234
Product Price
R34 049
R7 234
R 8 512
Institutional Subsidy
This subsidy is given to an approved housing institution that could comprise of a group of individuals
who have formed a legal entity that will acquire residential property and manage it. The institution
receives R25 800 per housing unit for each family earning below R3 500 per month. This is the only
subsidy that allows you to re-apply for another subsidy, purely because it is attached to the property
and not an individual and is mainly used for rental purposes.
Finance Linked Subsidy
Application for this type of subsidy is made by the bank, on behalf of the applicant. The subsidy is
used for bonded properties financed by a financial institution and the applicant's income must not
exceed R7000.
Project Linked Subsidy
These properties are built by contractors, employed by the province or municipality for groups of
people that qualify for subsidies. The subsidy amount is linked to your income and the beneficiary
must finance any shortfall.
Relocation Assistance
The subsidy is offered to borrower from bank, as of the 31 August 1997 who is at least three months
in arrears in payments of installments and need to be relocated to more affordable housing solutions.
The Department of Housing in partnership with the Banking Council has established a company
called SERVCON Housing Solutions (Pty) Ltd. who are to mediate the awarding of the relocation
grants as part of the strategy to normalise the housing environment and communities.