---
title: "First-time home buyer guide for South Africa"
description: "The cash a first home needs beyond the deposit, the income banks look for at each price, and who qualifies for the First Home Finance (FLISP) subsidy."
url: "https://privately.co.za/guides/first-time-home-buyer-guide-south-africa"
country: "South Africa"
updated: "2026-10-20"
published: "2026-08-16"
author: "Chandre Niemand"
source: "Privately"
---

# First-time home buyer guide for South Africa

*Chandre Niemand, Founder, Privately. Published: 2026-08-16.*

## Summary

SARS's transfer duty table has no discount for first-time buyers: every buyer pays nil up to R1 210 000 in the 2026/27 tax year. The help that exists is the government's First Home Finance subsidy (formerly FLISP), for households earning R3 501 to R22 000 a month that meet its other criteria, such as never having owned a home. Whatever you earn, you need cash beyond the deposit for transfer and bond costs.

## What first-time buyers get, and what they do not

We found no first-time buyer discount on transfer duty. SARS publishes one rate table, by property value, and neither that page nor SARS's page on exemptions mentions first-time buyers. For the 2026/27 tax year the table is nil up to R1 210 000, then 3% on the slice above that, rising in bands. A R1 500 000 home owes R8 700, which is 3% of the R290 000 above the threshold, not of the whole price. The [transfer duty guide](/guides/transfer-duty-and-transfer-costs) shows the bill at other prices.

What exists is a short list. Some of it is for every buyer, some is for a few, and one thing people expect is one we did not find.

**What a first-time buyer in South Africa gets, and what does not exist**

| Benefit | Who gets it | What to know |
| --- | --- | --- |
| Nil transfer duty up to R1 210 000 | Every buyer, on every purchase at or under that value | Not a first-time buyer benefit: SARS applies the same rate table to every buyer. Above the threshold only the slice over it is taxed. |
| No transfer duty when a VAT vendor sells as part of its enterprise | Buyers of a property sold by a registered VAT vendor, where the property forms part of that seller's enterprise | SARS's FAQ says a sale bears either VAT or transfer duty, never both, and that VAT takes preference. The [buying off-plan guide](/guides/buying-off-plan-south-africa) covers a developer's sale. |
| First Home Finance (formerly FLISP) | Households earning R3 501 to R22 000 a month who meet NHFC's other criteria | A once-off subsidy, not available to everyone. The section on First Home Finance below sets out who qualifies. |
| A 100% bond (no deposit) | Some buyers, at a lender's discretion | A 100% bond is the lender's decision, not an entitlement. The [house deposit guide](/guides/house-deposit-south-africa) covers what a deposit does and what buyers put down. |
| A first-time buyer transfer duty rebate | None that we found | SARS's rate table and its page on exemptions list no first-time buyer rate or exemption. |

## How much you need to earn

There is no single income number, because each lender decides how it assesses you. Under section 81(2) of the National Credit Act, as gazetted in 2006, a credit provider must take reasonable steps to assess your understanding of the risks and costs, your debt repayment history, and your existing financial means, prospects and obligations before it enters into a credit agreement. Section 82(1) lets each lender choose its own models and procedures for that assessment, provided they result in a fair and objective assessment. The National Credit Regulations add regulation 23A on affordability assessments, which has the lender work out your discretionary income after minimum living expenses. Neither the sections of the Act we read nor regulation 23A limits the repayment to a share of income. We read the Act as gazetted in 2006 and the regulation as gazetted on 13 March 2015, and later amendments may change the wording.

The table below uses an assumption this site applies in its "What your budget buys" card and in the guides that show a repayment-to-income figure: a bond repayment of at most about 30% of gross monthly income. It is our assumption, not a rule of the Act and not any one bank's published limit. Lenders differ, and your other debt counts, so a car instalment or a card balance lowers what a lender may offer even on a good salary. How much depends on the lender, and we give no percentage for it.

Each row is a 20-year bond at the [prime rate](/guides/prime-rate-south-africa) of 10.75% from 25 September 2026, with a 10% deposit. The income column is the gross monthly income at which the repayment is 30% of it. The repayment leaves out the bank's own monthly fees and insurance, and it moves when the rate does.

- At R1 210 000, the highest price with no transfer duty, the sums need about R36 853 a month before tax. At R2 000 000 they need about R60 914.
- A bank's maximum approval is a ceiling on what it will lend, not a recommendation of what to borrow. It may not reflect every commitment you have, such as school fees or medical aid, or leave room for rate rises.
- The [bond and transfer duty calculators](/calculators) work the same sum for your own price. If you tell Privately what you are looking for in a [brief](/brief), its "What your budget buys" card shows this same sum for your budget. For what a bank would actually lend, see [bond pre-approval](/guides/bond-pre-approval-south-africa). The [bond originators](/bond-originators) page shows who is listed on Privately at the moment.

**Gross monthly income the 30% rule implies: 20-year bond at prime (10.75%), 10% deposit, 2026/27 transfer duty**

| Purchase price | Deposit (10%) | Transfer duty | Monthly repayment | Gross monthly income at which the repayment is 30% |
| --- | --- | --- | --- | --- |
| R1 210 000 | R121 000 | Nil | R11 056 | R36 853 |
| R1 500 000 | R150 000 | R8 700 | R13 706 | R45 685 |
| R2 000 000 | R200 000 | R33 786 | R18 274 | R60 914 |
| R3 000 000 | R300 000 | R107 356 | R27 411 | R91 371 |

## The cash you need beyond the deposit

A first home costs more than the deposit. Registering the transfer is paid for in separate bills: transfer duty to SARS, the transferring attorney's fee, the bond attorney's fee if you are borrowing, and the Deeds Office fees for the transfer and the bond. The table prices them on a R1 500 000 home with 10% down, using 2026/27 duty, the Law Society's guideline of 1 July 2026 and the Deeds Office fees in force since 27 March 2026.

- The attorney fees follow a non-binding Law Society guideline, so an attorney may charge more or less, and VAT of 15% is added. The Deeds Office fees are set by regulation. Neither is a fee for first-time buyers: everyone pays them.
- Not in the table: your bank's bond initiation fee, which the lender charges up to the maximum the National Credit Act and its regulations allow (section 101(1)(b)), and the disbursements attorneys charge on top. The totals are therefore not the whole bill. The bank states its initiation fee and each attorney quotes their own fees.
- **Can any of it go into the bond?** The totals assume none does, so they are cash. A lender may agree to add some. Section 102(1) of the National Credit Act as gazetted in 2006 lets the credit provider under a mortgage agreement include listed items in the principal debt to the extent they apply, among them an initiation fee where the consumer has been offered and declined the option of paying it separately (section 102(1)(a)). ooba, a bond originator, reports loans above 100% of the price, which it calls cost-inclusive, and says they are done on an exceptional basis for repeat buyers (industry data, not law). Whether a lender does either, for which costs and on what terms, is the lender's own decision. The [house deposit guide](/guides/house-deposit-south-africa) has ooba's figures.
- The deposit is not a cost on top of the price: it is the part of the price you pay yourself. How much to put down is for the [house deposit guide](/guides/house-deposit-south-africa), and the [prime rate guide](/guides/prime-rate-south-africa) explains the rate behind the repayments above.

**Cash a first-time buyer needs on a R1 500 000 purchase with 10% down, beyond the price**

| Cost | Paid to | Amount |
| --- | --- | --- |
| Transfer duty | SARS | R8 700 |
| Transferring attorney's fee (Law Society guideline R32 635 plus VAT) | The attorney who transfers the property | R37 530 |
| Bond attorney's fee on the R1 350 000 bond (Law Society guideline R30 515 plus VAT) | The attorney who registers your bond | R35 092 |
| Deeds Office fee to register the transfer, with the lodgement fee | Deeds Office | R1 790 |
| Deeds Office fee to register the bond, with the lodgement fee | Deeds Office | R1 790 |
| **Total of these five costs** |  | **R84 902** |
| Deposit (10%) | Paid as your offer says. The house deposit guide covers who holds it. | R150 000 |
| **Deposit plus these five costs** |  | **R234 902** |

## First Home Finance (FLISP)

First Home Finance is a once-off housing subsidy for qualifying first-time buyers. The Department of Human Settlements developed it and the National Housing Finance Corporation (NHFC) implements it. It replaced the Finance Linked Individual Subsidy Programme (FLISP), which is why many pages still use that name: the department's statement of 27 February 2023 says First Home Finance replaces FLISP and Help-Me-Buy-A-Home.

**Who qualifies.** These are the criteria on NHFC's First Home Finance page as we read it on 20 October 2026; the portal repeats them except for the approval in principle. You are a South African citizen with a valid ID or a permanent resident with a valid permit. You are over 18 and able to contract. Your total household income is R3 501 to R22 000 a month. You have never owned a home, which NHFC checks against the Deeds Register, and you have not benefited from a government housing programme before. And you hold an approval in principle for a home loan from a lender registered with the National Credit Regulator, or from another approved partner. A household above R22 000 a month is outside the band, and the cash costs above apply to it in full.

**Whose income counts.** The income band is for the household, not only for you. NHFC's programme page does not say what a household is. The portal does: it says a household includes living with a partner, married or habitually cohabiting, or living with financial dependents, and it lists children, grandchildren, parents, grandparents and brothers or sisters under 18 as examples of dependents. We do not know how NHFC treats a buyer with neither a partner nor a dependent, because neither page says. The portal describes its pre-approval assessment as a way to see if you potentially qualify.

**How much it pays.** The amount is on a sliding scale: the lower the household income, the larger the subsidy, in steps across the income band. NHFC publishes the amounts as two table images headed "Subsidy Quantum Table", with an implementation date of 1 April 2023. NHFC's programme page, marked "Page updated 15 April 2025", shows that table. We have not confirmed with NHFC that it is the table in use today, so this guide prints no subsidy amount.

**Where the subsidy stops.** At the top of the band, R22 000 a month, the 30% rule supports a repayment of R6 600. At prime of 10.75% over 20 years that is a bond of about R650 000, or a price of about R722 000 with a 10% deposit. That is well under the R1 210 000 nil duty threshold, so on this rule of thumb a buyer inside the band is unlikely to owe transfer duty. A lender's own assessment may differ.

**What it pays for.** NHFC's portal says the subsidy can go toward buying a house that is already built, in a new development or on the resale market. It can also go toward building on a stand you own, under conditions such as NHBRC enrolment and a contract with an NHBRC-registered builder. And it can go toward house buying costs, such as conveyancing fees, a deposit or the NHBRC enrolment fee. NHFC's page says it can be combined with a mortgage loan, other housing loans, savings or an employer scheme. The portal says it does not cover geotechnical, architectural, structural engineer or house plan approval fees.

**How to apply.** The portal describes three ways in, not three steps in a row. An eligibility check needs no registration and asks only whether you have previously benefited from a government housing subsidy. A pre-approval application needs registration, and its outcome is shown the next day. A full application, which the portal says can skip the other two, needs registration and your documents uploaded, and the portal says to allow 21 working days for it to be processed. NHFC's page lists the documents: ID for every adult in the household, proof of citizenship, proof of income, and marriage, divorce or guardianship papers where they apply. An approval in principle for a home loan is one of the criteria on NHFC's page, and the [bond pre-approval guide](/guides/bond-pre-approval-south-africa) covers what a lender's certificate does and does not promise.

**Windows, and fees.** The portal shows notices that applications run in windows that open and close, and says its pre-approval and disbursement functions stay open either way. The closing date in the notice we saw carried no year, so this guide prints no date; the portal's notices show the current window. NHFC's page says, citing the National Housing Code, that no lender or other party may charge an administration fee specifically for First Home Finance applications, and that its origination partners must not charge applicants any fee for accessing the subsidy.

## Your first purchase, step by step

- **Work out what you can afford.** The income table above gives a rough figure at four prices. Your own debts, the cash costs beyond the price and any change in the prime rate, if your bond moves with it, all change it. The [bond and transfer duty calculators](/calculators) and a [brief](/brief) on Privately work the same sum for your own price.
- **Get a pre-approval.** A [bond pre-approval](/guides/bond-pre-approval-south-africa) from a bank, or through a bond originator (the [bond originators](/bond-originators) page shows who is listed on Privately at the moment), shows what a lender is likely to offer before you view a home. An approval in principle is not the bank's approval of the bond on the home you end up buying. Lenders publish their own document lists. Nedbank's home loan page asks a salaried applicant for proof of identity, the latest three months' payslips or other proof of income and the latest three months' bank statements, and adds the signed offer to purchase where there is one. ooba's list adds proof of residence and details of existing debt.
- **First Home Finance, if your household income is in the band.** The portal's eligibility check needs no registration but asks only whether you have had a government housing subsidy before; its pre-approval assessment is the option the portal describes as a way to see if you potentially qualify. An approval in principle for a home loan is one of the criteria on NHFC's page.
- **View, and do your own due diligence.** [Buying a house privately](/guides/how-to-buy-a-house-privately-in-south-africa) covers the title deed, the latest rates and levy statements, the approved building plans and a written disclosure of known defects. A new home from a developer works differently: see [buying off-plan](/guides/buying-off-plan-south-africa).
- **Decide between freehold and sectional title** before you make an offer. The ownership form changes what you maintain and what monthly levy you carry. See [freehold vs sectional title](/guides/sectional-title-vs-freehold-south-africa).
- **Make a written offer.** Under section 2(1) of the Alienation of Land Act, as gazetted in 1981 and subject to section 28, a sale of land has no force or effect unless it is in a deed of alienation signed by the parties, or by their agents acting on written authority. Section 3(1) says section 2 does not apply to a sale of land by public auction. See [how an offer to purchase works](/guides/offer-to-purchase-south-africa), and read [suspensive conditions](/guides/suspensive-conditions-subject-to-bond) for what happens if the bond is not approved in time.
- **Confirm your bond within the period your offer sets.** That period is a term of the contract, not a rule of law, so read the clause.
- **Let the conveyancer run the transfer.** See [conveyancing and the transfer process](/guides/conveyancing-and-the-transfer-process) for what happens at each stage and how long it can take.

## Common first-time buyer mistakes

- Budgeting only for the deposit and being caught out by transfer duty, attorney's fees and bond registration costs at the same time.
- Expecting a first-time buyer discount on transfer duty, then finding the duty owed on a price above R1 210 000.
- Treating a bank's maximum approval as the amount to borrow, when it is a ceiling on what the bank will lend.
- Skipping pre-approval and only discovering the real affordability number after making an offer, with the deadline in the bond condition already running.
- Budgeting around a First Home Finance amount taken from a table whose implementation date is 1 April 2023, or paying a fee to apply when NHFC's page says no lender or other party may charge an administration fee specifically for those applications.
- Not reading the offer to purchase closely before signing: it binds both parties once they sign, and is not a non-committal expression of interest.
- Assuming sectional title means no maintenance responsibility. You still pay a share of the complex's costs through the monthly levy, on top of your bond.
- Not budgeting for life after transfer: moving costs, immediate repairs, and the first few months of rates, levies and insurance landing all at once.

## Frequently asked questions

### How much do I need to earn to buy a house in South Africa?

There is no single number, because each lender decides how it assesses you under the National Credit Act's affordability rules. On this site's assumptions (a 20-year bond at prime of 10.75%, a 10% deposit and a repayment of at most about 30% of gross income), a R1 210 000 home needs about R36 853 a month and a R1 500 000 home about R45 685. Existing debt lowers what a lender may offer. Get a pre-approval to see your own figure.

### How much must I earn to qualify for a R2 million house?

On this site's assumptions (a 20-year bond at prime of 10.75% and a 10% deposit of R200 000), the repayment is about R18 274 a month. If that is at most about 30% of gross income, it needs about R60 914 a month before tax. That is our assumption, not a bank's published limit, and a lender may offer less if you have other debt. The income table in this guide shows other prices.

### Do first-time home buyers pay transfer duty in South Africa?

We found no first-time buyer exemption. SARS publishes one rate table by property value, and in the 2026/27 tax year it is nil up to R1 210 000 for every buyer. Above that, only the slice over the threshold is taxed, starting at 3%. A R1 500 000 home owes R8 700.

### What benefits do first-time home buyers get in South Africa?

Nil transfer duty up to R1 210 000 applies to every buyer, not only first-time buyers. First Home Finance is a once-off subsidy for households earning R3 501 to R22 000 a month who meet NHFC's criteria. Some lenders offer 100% bonds, at their discretion. We found no separate first-time buyer transfer duty rebate in SARS's rate table or its exemptions page.

### Is there a first-time home buyer subsidy in South Africa, and is FLISP still available?

Yes. First Home Finance, run by the NHFC for the Department of Human Settlements, replaced FLISP, and its online portal was live when we read it on 20 October 2026. It is a once-off subsidy for households earning R3 501 to R22 000 a month who meet NHFC's criteria, among them never having owned a home. The amount depends on income. We print no amount because we have not confirmed that NHFC's published table is current. Application windows open and close, so check the portal.

### What are the requirements for a first-time home buyer in South Africa?

To buy with a bond, a lender must take reasonable steps to assess your understanding of the credit, your repayment history and your existing means and obligations (National Credit Act, section 81(2), as gazetted in 2006). The documents each lender asks for vary. Nedbank's home loan page asks a salaried applicant for proof of identity, the latest three months' payslips or other proof of income and the latest three months' bank statements, plus the signed offer to purchase where there is one, and ooba's list adds proof of residence and details of existing debt. A sale of land must be in a signed written deed to have force (Alienation of Land Act, section 2(1), as gazetted in 1981), and section 3(1) exempts a sale by public auction. For First Home Finance, NHFC's criteria include citizenship or permanent residence, household income in its band, never having owned a home, and an approval in principle for a home loan.

### What costs do first-time buyers pay besides the deposit?

Transfer duty if the price is above R1 210 000, the transferring attorney's fee, the bond attorney's fee if you borrow, the Deeds Office fees, and your bank's bond initiation fee, which the lender charges up to the maximum the National Credit Act and its regulations allow. On a R1 500 000 home with 10% down, the first five come to about R84 902, before the initiation fee and attorneys' disbursements. They are cash costs unless a lender agrees to add some to the loan, which varies by lender, so ask before you rely on it.

### Which bank is best for first-time home buyers?

There is no single best bank, and we do not name one: a lender assesses each applicant on their own means and history (National Credit Act, section 81(2)). Your own bank gives you one lender's view. A bond originator is another route, and the bond pre-approval guide covers how banks and originators differ. How an originator is paid is a question for the originator. See /bond-originators for who is listed on Privately at the moment.

### What is the first step to buying a house?

The first step in this guide is working out what you can afford: the income table shows the sum at four prices. A pre-approval from a bank or bond originator comes before viewing homes, and the bond pre-approval guide explains how pre-qualification differs from pre-approval, and what each does and does not promise.

## Sources

- [SARS: Transfer Duty rates (the one rate table; mentions no first-time buyer rate), accessed 20 October 2026](https://www.sars.gov.za/tax-rates/transfer-duty/)
- [SARS: Transfer Duty exemptions (lists no first-time buyer exemption), accessed 20 October 2026](https://www.sars.gov.za/types-of-tax/transfer-duty/exemption/)
- [SARS: Can the sale of a property be subject to both VAT and Transfer Duty? (FAQ), accessed 20 October 2026](https://www.sars.gov.za/faq/faq-can-the-sale-of-a-property-be-subject-to-both-vat-and-transfer-duty/)
- [First Home Finance portal (NHFC as implementing agent: uses, who may apply and what a household includes, application options), accessed 20 October 2026](https://firsthomefinance.co.za/)
- [NHFC: First Home Finance (criteria, fee rule, documents; marked "Page updated 15 April 2025"), accessed 20 October 2026](https://www.nhfc.co.za/finance-solutions/first-home-finance/)
- [NHFC: First Home Finance Subsidy Quantum Table, page 1 of 2 (implementation date 1 April 2023; shows that the subsidy falls as income rises), accessed 20 October 2026](https://www.nhfc.co.za/wp-content/uploads/2024/12/FHF-Flisp-Table-2-1-01-scaled.jpg)
- [NHFC: First Home Finance Subsidy Quantum Table, page 2 of 2 (implementation date 1 April 2023; shows that the subsidy falls as income rises), accessed 20 October 2026](https://www.nhfc.co.za/wp-content/uploads/2024/12/FHF-Flisp-Table-2-1-02-scaled.jpg)
- [South African Government: Human Settlements launches First Home Finance (statement of 27 February 2023; says it replaces FLISP), accessed 20 October 2026](https://www.gov.za/news/media-statements/human-settlements-launches-first-home-finance-missing-middle-beneficiaries-27)
- [National Credit Act 34 of 2005 as gazetted in March 2006 (sections 81, 82, 101 and 102; later amendments not read), accessed 20 October 2026](https://www.gov.za/sites/default/files/gcis_document/201409/a34-050.pdf)
- [National Credit Regulations, Government Gazette 38557 of 13 March 2015, as hosted by the National Credit Regulator (regulation 23A, affordability assessment; later amendments not read), accessed 20 October 2026](https://www.ncr.org.za/documents/pages/NCA-amendment-Regulations-March-20151.pdf)
- [Alienation of Land Act 68 of 1981 as gazetted on 18 September 1981 (sections 1, 2(1) and 3(1); amended versions exist and we read the gazetted text), accessed 20 October 2026](https://www.gov.za/sites/default/files/gcis_document/201503/act-68-1981.pdf)
- [SARB: current market rates (the prime lending rate; the table on this page loads by script, so the timeseries below carries the same figure), accessed 20 October 2026](https://www.resbank.co.za/en/home/what-we-do/statistics/key-statistics/current-market-rates)
- [South African Reserve Bank: prime lending rate (timeseries MMRD000A) (accessed 19 October 2026)](https://custom.resbank.co.za/SarbWebApi/WebIndicators/Shared/GetTimeseriesObservations/MMRD000A/2019-12-01/2026-10-19)
- [SAnews: MPC raises repo rate to 7.25% (the repo rate decision effective 25 September 2026; it gives the repo rate, not prime), accessed 20 October 2026](https://www.sanews.gov.za/south-africa/mpc-raises-repo-rate-725)
- [Deeds Registries Act schedule of fees, Government Notice 7180, Government Gazette 54225 (Deeds Office fees from 27 March 2026), accessed 20 October 2026](https://www.gov.za/sites/default/files/gcis_document/202603/54225gon7180.pdf)
- [LSSA: Guideline of Fees, Conveyancing, effective 1 July 2026 (a non-binding guideline for attorney fees), accessed 20 October 2026](https://www.lssa.org.za/wp-content/uploads/2026/06/CONVEYANCING-FEE-GUIDELINES-2026-FINAL.pdf)
- [Nedbank: documents required to apply for a home loan (a lender's own checklist, not law; the page shows no date), accessed 20 October 2026](https://personal.nedbank.co.za/learn/help-centre/borrow/home-loans/documents-required-to-apply.html)
- [ooba: documents needed for a home loan (a bond originator's own checklist, not law; the page shows no date), accessed 20 October 2026](https://www.ooba.co.za/faq/documents-needed-for-home-loan/)
- [ooba: Zero-deposit and cost-inclusive home loan demand (loans above 100% of the price; industry data from ooba's own applications for January to April 2026, not law; the page shows no date), accessed 20 October 2026](https://www.ooba.co.za/resources/zero-deposit-and-cost-inclusive-home-loan-demand/)

## Related guides

- [Bond pre-qualification and pre-approval in South Africa](https://privately.co.za/guides/bond-pre-approval-south-africa)
- [How much deposit do you need to buy a house in South Africa?](https://privately.co.za/guides/house-deposit-south-africa)
- [Transfer duty and transfer costs in South Africa](https://privately.co.za/guides/transfer-duty-and-transfer-costs)
- [The prime rate in South Africa: the current figure, its history and your bond](https://privately.co.za/guides/prime-rate-south-africa)
- [How to buy a house privately in South Africa](https://privately.co.za/guides/how-to-buy-a-house-privately-in-south-africa)
- [Buying off-plan in a new development](https://privately.co.za/guides/buying-off-plan-south-africa)
- [Sectional title vs freehold in South Africa](https://privately.co.za/guides/sectional-title-vs-freehold-south-africa)

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Figures verified 2026-09-28. General information about South African property practice, not legal or financial advice.

Source: Privately, https://privately.co.za/guides/first-time-home-buyer-guide-south-africa