First Home Finance
Our First Home Finance programme is a housing subsidy for first-time home buyers to assist with purchasing a home. If your household income is between R3 501 and R22 000 per month and you meet all the qualifying criteria, you may use this subsidy to purchase your first home. This subsidy can only be used once if your application is successful.
This subsidy can be used to:
- Buy an existing house/apartment.
- Buy a serviced residential site (i.e. plot with access to basic services - Applicants must be registered on the Western Cape Housing Demand Database) for 3 years.
- Build a house on a serviced residential site if the site wasn’t acquired through a government housing subsidy in the past. Note that your builder must be registered with the National Home Builders Registration Council (NHBRC) to ensure building and safety standards.
Applicants can access this subsidy using one of the following finance options:
| Finance options | Reguirements |
| Mortgage Loan | An approved home loan. You can also apply retrospectively, i.e. if you purchased a residential property, and it's been transferred into your name not longer than 6 months ago. |
| No fee or no interest loan | An interest-free loan from a lender, e.g. Stokvel, employer, a family member, etc. |
| Pension-backed loan | A loan provided by a financial institution secured by your pension savings. Your pension fund and the financial institution must have entered into an arrangement. |
| Rent to Buy / Deferred Ownership | Agreement with your landlord to purchase the property you have been renting. You should only apply for the subsidy at the point of purchase once you've secured the necessary finance to make the purchase. |
| No financial contribution required | If the subsidy amount that you qualify for is equal to, or greater than, the purchase price of the property. The subsidy can also be used to cover transfers, bond registration costs, or a shortfall on the bond. |
| Cash | From your own savings. |
Who to contact to check the status of your subsidy application?
You can contact the Department’s Helpdesk directly for further assistance or details regarding the status of your subsidy application. You can contact them telephonically or by e-mail.
Where can I find more information?
Western Cape Department of Infrastructure
Ground Floor, ISM Building
27 Wale Street
Cape Town
Helpdesk
Call: 021 483 6488 / 021 483 0611 / 021 483 0623 / 021 483 2060/ 021 483 3112
E-mail: Human.Settlements@westerncape.gov.za
Office Hours
Mondays to Fridays from 07:30 - 15:00
What you need to qualify
- Your gross household income is between R3,501 and R22,000 per month, ie. Basic household income plus housing allowance where applicable.
- You're a South African citizen or have a permanent residency permit.
- You're over 18 years and competent to contract.
- You're married, or cohabiting, OR single with financial dependents.
- You haven’t received a government housing subsidy before.
- You haven’t owned fixed residential property before.
How do I apply for First Home Finance?
Once you have selected or secured one of the finance options (see above table), contact the Department of Infrastructure to complete the application form. You can also contact your nearest municipality regarding this programme.
The following documents are required, together with your completed application:
- Certified copies of identity documents (IDs)
- Certified copies of dependents’ birth certificates
- Certified copy of marriage certificate/Final order of divorce
- Original recent payslip/affidavit confirming unemployment/proof of social grant
- Certified copy of the deed of sale/offer to purchase, if applicable
- Certified copy of the bond approval/bond quotation, if applicable
- Original/ certified copy of the statement of transfer cost from the transferring attorney, if applicable
What is the subsidy amount that you can qualify for?
The subsidy amount depends on your income and ranges between R38, 911 – R169 264
Deferred ownership is also known as 'Rent-to-Own' or ‘Rent-to-Buy’.
For more information on the pilot project being developed in Bredasdorp, Cape Agulhas, visit the Mill Park housing development.