Merchant Finance has recently witnessed a surge in interest for its newly launched zero-deposit home loan product, which debuted just a month ago. Over 500 individuals have visited the company to inquire about their eligibility for this innovative financial solution, providing a ray of hope for many first-time homebuyers in Fiji. The company’s CEO, Veilawa Rereiwasaliwa, noted that 48 loans are currently in progress, totaling around $10 million, aimed at individuals who have taken critical steps in the home-buying process.
This groundbreaking loan product is designed especially for individuals and families, particularly those living in informal settlements, who aspire to purchase their first home or buy land to build on. The initiative has struck a chord, especially among those who have long struggled to save for a traditional deposit, which typically ranges from 10 to 20 percent of a property’s price.
Mr. Rereiwasaliwa emphasized the excitement and eagerness of prospective buyers as they come to understand their budget options, marking a significant change in the Fiji housing market. The zero-deposit loan, a first for the nation, is complemented by a new land loan product that Merchant Finance launched earlier this month, both aimed at making homeownership more accessible to the community.
The loan offerings are structured to empower those with a combined annual income of $30,000 to $50,000 to qualify for financing up to $300,000 at an attractive fixed interest rate of 3.99 percent for the first five years. This initiative not only addresses the financial barriers that have historically hindered many from entering the property market but also showcases Merchant Finance’s commitment to providing solutions that meet the needs of Fijians.
In a broader context, this move reflects an understanding of the housing demands within Fiji, where the Reserve Bank reported only 12,574 mortgages for nearly 200,000 households. By bridging this gap, Merchant Finance is not only fostering individual hopes of homeownership but also contributing to the stability and growth of the housing market, thereby enhancing community development.
This positive shift towards more accessible home financing holds promise for aspiring homeowners and indicates a commitment to creating lasting opportunities for many in Fiji. As more families embark on their journeys to homeownership, the overall socio-economic landscape may see significant improvement, paving the way for a brighter future.
Leave a comment