1. Who can apply for an Individual Housing Subsidy?
2. How much is an Individual Housing Subsidy worth?
3. How much will I have to pay in?
4. How do I apply for an Individual Housing Subsidy?
5. What documentation must I supply when applying for an Individual Housing Subsidy?
6. How is the Individual Housing Subsidy paid out?
7. Will I have to pay anything back?
8. Where can I find out more information?

You can not apply for a housing subsidy if you have already received a grant from the Department of Land Affairs, or received a subsidy or housing assistance from the government before.

You qualify for a housing subsidy if ALL of the following statements are true:

1. I am married or cohabiting with a long-term partner. (If you are married or cohabiting, it does not matter whether you have financial dependents or not.)
   OR
   I am single or divorced with financial dependents.
2. I am a South African citizen
   OR
   I have a South African Permanent Resident's Permit.
3. I am over 21 years of age
   OR
   I am under 21 years of age and married or divorced with financial dependents.
4. I am of sound mind.
5. My gross monthly household income is less than R3 500.
6. I have never received a subsidy from the government, and neither has my partner.
7. I have never owned property, and neither has my partner.
8. My family and I will live on the property bought with the subsidy.

If you answer "true" to all of the above, then you are probably eligible for a housing subsidy.

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. (See Housing Subsidies for the Disabled and Health-Stricken.)

You will have to pay the difference between the Individual Housing Subsidy and the cost of the existing house. For example, if you buy a house for R35 798 and receive a subsidy of R34 049, you will have to pay in R550, plus the transfer, bond registration and conveyancing attorney's costs.

However, if you buy a house for R32 087 and receive a subsidy of R34 049, you will be able to pay for at least part of the transfer, bond registration and attorney's costs out of the R4 450 that is left of the subsidy money. Note that this money will not be paid to you, but directly to the relevant party.

There are two kinds of Individual Housing Subsidies, based on whether you can pay your contribution to the house out of your savings, or if you need to borrow money to pay for it.

• A Non-Credit-Linked Individual Subsidy is what you get if you can pay your contribution, in full, out of your pocket. To apply for a Non-Credit-Linked Subsidy, you will need to fill out an application form at the Department of Local Government & Housing at 27 Wale Street in Cape Town, or visit your local municipal offices.
• A Credit-Linked Individual Subsidy is what you get if you can not afford to pay your contribution, in full, out of your savings and need to do so using a loan from a bank or some other financial institution. You will need to be pre-approved for credit with an approved financial institution before you can apply for a Credit-Linked Subsidy at the Department of Local Government & Housing at 27 Wale Street in Cape Town, or at your local municipal offices.

For information on other kinds of subsidies, go to our Subsidies & Assistance page.

You will need to supply:

1. A copy of your bar-coded South African ID, that of your partner or spouse, and the birth certificates of your financial dependents. (See Applying for a Birth Certificate if you have lost your dependents' birth certificates.) Please note that you will be asked to provide the ID numbers of your financial dependents.OR
   A copy of your Permanent Residency Permit if you are not South African, plus those of your partner or spouse and dependents.
2. Your marriage certificate, if you are married
   OR
   Your divorce decree, if you are divorced with financial dependents.
3. A recent payslip (no more than six months old) as proof of income.
4. If you are applying for a Non-Credit-Linked Individual Subsidy, you will need to supply a certified copy of the signed agreement of sale for the property. Be sure to make the sale conditional to your receiving a housing subsidy.
   OR
   If you are applying for a Credit-Linked Individual Subsidy, you will need to supply a certified copy of the signed agreement of sale for the property. Be sure to make the sale conditional on your receiving a government housing subsidy AS WELL AS a house bond. You will also need to provide proof that the house bond has been approved.

A housing subsidy is not a cash payout but is paid directly to the financial institution from which you are receiving a housing bond (in the case of Credit-Linked Individual Subsidies) or the seller (in the case of Non-Credit-Linked Individual Subsdies).

To prevent fraud, in cases where a homebuyer has to make a contribution to the cost of a house, the government requires that this contribution is paid in full before the subsidy will be paid out.

The housing subsidy is not a loan and you do not need to pay it back.

If you have a Credit-Linked Subsidy you will have to back your loan to the financial institution that gave it to you.

Department of Local Government & Housing
27 Wale Street
Cape Town

Housing Subsidies Helpdesk
Call 021 483 2342 between 8am and 4.15pm, Mondays to Fridays.

Housing Code

Refer to Part 3, Chapter 4 for information on Individual Subsidies.