Programmes and subsidy 

Qualification criteria

To qualify you must:

• 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:

• 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.

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.

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.

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.

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.