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Buying your first home can be exciting – and costly. This is why Scorpion Legal Protection’s lawyers want to share their legal advice for first-time homebuyers.
This is a once-off grant from the government for lower-income South Africans earning between R3 501 - R22 000 per month to help them buy their first house. The subsidy ranges from R30 001 to R130 000, depending on your income. The amount you qualify for is determined on a sliding scale depending on your salary. Speak to your home loan consultant or estate agent for assistance with a Finance Linked Individual Subsidy Programme (FLISP) application process and qualifying criteria.
It’s important to check that the approved plans actually match the property in real life, and that you get plans at all. The seller is not legally obligated to give you the building plans unless it is stated in the sale agreement. Often people decide to add structures to their homes or build on, for example a garage or outdoor entertainment area, and may not have had new plans of the house drawn up. If alterations and additions have been done without municipal (local authority) approval and the property is then sold, it can become a messy legal matter that could end up costing you a lot of money.
Your credit score is basically a measure of how much risk you present to the institution lending you money, your ability to pay back a loan. It’s used to determine how much credit you can get and even what interest rate you will pay on your loan, and the banks check your credit score when you apply for a home loan. The better your credit score, the better your chances of being approved for the loan at a good interest rate. You should aim for anything above 600, which is considered a good credit score.
You may also be interested in:
What is the Rental Housing Tribunal?
Becoming legal owner of land/property
4 hidden costs in your rental agreement
We have a team of lawyers available to answer your legal questions every first Thursday of the month from 11:30 to 13:30 on the Scorpion Legal Protection Facebook page for free. Have your legal question answered on the spot at the Scorpion Live Q&A.
* This is only basic legal advice and cannot be relied on solely. The information is correct at the time of being sent to publishing.
Date added: 5 October 2022
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