What is the difference between RDP and Government Subsidised Housing?
Reconstruction and Development Programme (RDP) is a South African socio-economic policy implemented by the government of President Nelson Mandela in 1994.
The programme oversaw many major advances in dealing with South Africa’s most severe social problems:
- Housing
- Clean running water
- Sanitation
- Electricity
Subsidised Housing – is a programme that affords a beneficiary to acquire a house that is built and provided by the government through a government subsidy. These houses were commonly referred to as ‘RDP Houses’
Who qualifies for a Government House?
To qualify you must:
- Be a South African citizen.
- Be contractually capable.
- Be married or habitually cohabit with a partner.
- Be single and have financial dependants.
- Earn less than R3500.01 per month per household.
- Be a first time government subsidy recipient.
- Be a first time home owner.
- Single Military Veterans without financial dependent.
What are the essential documents that I must have to qualify?
- Applicant and spouse’s Identity Documents
- Birth certificates of children
- Proof of income if working. (Salary Slip)
Where can I apply for a Government Housing Subsidy?
- Provincial Department of Human Settlements
- Local Municipality
What fees – if any – I am going to pay when applying for a Government subsidised house?
No fee is charged. In the past, beneficiaries were expected to contribute R2 479.00 towards achieving access to the housing subsidy – or as a way “to top up” to the subsidy for houses that were being build using the People’s Housing Process model. With this model people were responsible for the construction of their own house. This model no longer exists.
I am single and have a child, can I apply for a housing subsidy?
Yes, if you comply with other qualifying criteria you may apply. This means over 21 years of age or previously legally married
What is First Home Finance?
Financed Linked Individual Subsidy Program, better known as First Home Finance, was developed by the Department of Human Settlements to enable sustainable and affordable first time home-ownership opportunities to South African citizens and legal permanent residents earning between R3501 and R22 000 per month (the “affordable” or “ gap” market). Individuals in these salary bands generally find it hard to qualify for housing finance. Their income is regarded as low for mortgage finance, but too high to qualify for the government “free-basic-house” subsidy scheme.
What to do with First Home Finance?
Qualifying applicants may use First Home Finance to do one of the following:
- Buy an existing, new or old, residential property.
- Buy a vacant serviced residential –stand linked to NHBRC registered home builder contract or build a residential property on a self owned service residential stand, through an NHBRC registered homebuilder.
The once-off First Home Finance subsidy amount ranges between R10 000 and R87 000, depending on the applicant’s monthly income.The maximum price of a property that can be financed through First Home Finance is R300 000.
Who can apply?
First Home Finance Applicants must meet the following qualifying criteria:
- RSA citizens with a valid ID or permanent residents with valid permit
- Over 18 years and competent to legal contract.
- Never have been benefitted from Government Housing Scheme before.
- Have an approval in principle of home loan from accredited South African banks.
- First time home buyer, earning from R3501 to R22 000 per month.
- First Home Finance is for residential properties in formal towns where transfer of ownership and registration of mortgage bond is recordable in the Deeds Office.
Important Documents
- RSA Bar coded ID or Bar Coded permanent residence permit.
- Birth certificates/RSA IDs of all financial dependents (where applicable).
- Proof of foster children guardianship (where applicable).
- Marriage certificates, civil union certificate or cohabiting affidavit (where applicable).
- Divorce settlement (where applicable).
- Proof of monthly income.
- Home loan approval in principle/ Grant letter from an accredited Lender.
- Agreement of sale for the residential property.
- Building Contract and approved Building Plan (where applicable).