The Ministry of Housing has allocated $4 million to assist 235 successful applicants under the First Home Ownership Initiative during the 2023-2024 financial year. Minister for Housing and Local Development, Maciu Nalumisa, acknowledged the progress made but stressed that more efforts are necessary to provide Fijians with affordable housing options.
Recent data from the Reserve Bank of Fiji revealed that as of September last year, there were only 12,574 home loans facilitated by licensed banks and financial institutions. This statistic is concerning considering that Fiji has over 200,000 households, meaning that less than seven percent of households have access to home loans. Nalumisa noted that high deposit requirements, traditionally ranging from 10 to 20 percent, pose significant obstacles for many potential homeowners.
The government’s response includes the launch of Merchant Finance’s innovative zero-deposit home loan product, which aims to mitigate these challenges. Minister Nalumisa emphasized the importance of collaboration with stakeholders, including financial service providers, to enhance home ownership. The introduction of the zero-deposit loan option is viewed as a transformative solution that broadens financial access for individuals aspiring for home ownership.
Furthermore, the Housing Ministry is facilitating home ownership through alternative means, offering free certified housing plans for two and three-bedroom homes at its offices. Additionally, the Housing Authority of Fiji is providing affordable land lots tailored for middle to low-income earners.
The First Home Ownership Initiative is structured to offer grants to assist families in either constructing or purchasing their first homes, with a dedicated budget of $4.5 million allocated for those earning below and above $50,000. Each household can receive a maximum of $10,000 in grant assistance.
This initiative and the launch of innovative financial products reflect the government’s commitment to overcoming barriers to home ownership, aiming to improve living conditions for many Fijians. The ongoing collaboration between the government, financial institutions, and construction authorities may indeed pave the way for broader accessibility and stability in home ownership across the nation.
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