The Fiji Development Bank (FDB) has expressed concerns about the ongoing challenges of home ownership for many Fijians, particularly in urban regions where rising house prices and limited land supply create significant affordability issues. FDB’s Manager for Marketing, Events, Communications, and Customer Advocacy, Kinijoji Bakoso, highlighted that while housing prices have increased steadily over the past five years, average incomes have not proportionately risen, making it increasingly difficult for local buyers to enter the housing market.
Bakoso noted that this disparity has led to a strong demand for rentals, as many families struggle to transition from renting properties to owning them. The lack of affordable housing options and tradable land exacerbates this situation. However, there is a glimmer of hope amidst these challenges. Earlier this year, the Government’s announcement to reintroduce FDB housing loans marks a significant effort aimed at supporting low- and middle-income earners seeking home ownership.
Under the FDB Home Choice Loan program, families with an annual income of less than $50,000 can apply for housing loans with a fixed interest rate of 3.99 percent for five years, made possible through a partnership with the Reserve Bank of Fiji. Additionally, these households may be eligible for a first home purchase grant from the Government of up to $15,000 for purchasing a home or $30,000 for construction.
The programs introduced by the FDB have also expanded to include households earning between $50,000 and $100,000, allowing them access to home loans and Government grants of $5,000 for home purchases and $20,000 for construction. Moreover, Bakoso emphasized that the FDB is committed to helping households with incomes exceeding $100,000 through alternative loan packages, reinforcing its goal to enhance access to home ownership despite the current market challenges.
This initiative by the Government and the FDB reflects a proactive approach to addressing the housing crisis in Fiji, demonstrating an encouraging commitment to improve the living conditions for many families.
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