First Home Finance

Laying strong foundations for tomorrow’s success

We provide innovative and affordable housing finance solutions for the low-to-middle income market.


First Home Finance is a once-off housing finance subsidy enables qualifying beneficiaries to to buy or build their first homes on affordable basis.

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 whose household income is from  R3 501 up to R22 000 per month. This market segment is generally referred to as (the ‘affordable’ or ‘gap’ market). Households in this income band generally find it hard to qualify for housing finance to access their first homes as; their income is regarded as low for mortgage finance, but too high to qualify for a government ‘free-basic house’, the RDP or BNG house.

The subsidy that a household can qualify is dependent on the total household gross income on a sliding scale as summarised in the table below:

FHF-Subsidy-Graphic 2

First Home Finance may be used in combination with one of the following housing loan products and situations:

  • Mortgage loans
  • Unsecured housing loans from any  lender registered with the National Credit Regulator.
  • Pension Backed Housing loans granted or guaranteed by a Pension or Provident Fund
  • Housing loans granted by  Community-Based Savings Scheme, such as Stokvels and Co-operatives.
  • Household’s own resources or savings.
  • Housing loans supported by Employer-Based Housing Schemes such as
    Government Employees Housing Scheme for government employees; and
    Private sector employers with Employer Assisted Housing Schemes (EAHS).
  • Instalment Sale agreements.
  • Rent to Buy agreements.
  • Housing loans supported by Permission-to-­Occupy (PTOs) issued by government recognised Traditional Authories to enable delivery of the subsidy in rural areas.

For enquiries contact:


To qualify for the subsidy offered through First Home Finance, applicants must meet the following criteria:

  • South African citizen with a valid ID; or permanent resident with a valid permit;
  • Over 18 years and competent to legally contract;
  • Have never benefited from a Government Housing Subsidy Scheme (GEHS) before;
  • Have never owned a home as checked from the Deeds Register;
  • Have an Approved of in Principle Approval of a home loan from a NCR registered bank or non-bank lenders or other Policy approved partners such as community based organisations; and
  • Total household income must be within the income range of R3 501 up to R22 000 per month.


  • Smart Card or a bar-coded identity document of every adult member of the household.
  • Birth certificates, bearing the thirteen-digit identity number, for every child member of the household that does not have a bar-coded identity document.
  • Proof of South African citizenship.
  • Marriage certificate for any union solemnised in terms of civil law.
  • Divorce settlement agreement, to prove .custodianship.
  • Court order or order issued by the Commissioner of Child Welfare, to prove guardianship; and,
  • Proof of sources of income.
  • Permission-To-Occupy in the case of applicants in rural areas.
  • Affidavit for any union solemnised in terms of customary law.