Merchant Finance has launched a new home loan product that requires no deposit, specifically designed for first-time home buyers. The initiative, announced by CEO Veilawa Rereiwasaliwa, aims to assist individuals who have recently entered the workforce, young families, and renters who are eager to secure their own homes but face challenges in gathering the substantial deposits typically needed by commercial banks.
Rereiwasaliwa highlighted that the current requirement for deposits varies between 10 to 20 percent of the property purchase price, a significant hurdle for many potential buyers. He noted that individuals often take years to amass the necessary savings, only to find that property prices have risen significantly in that time.
The new zero-deposit loan product offers a competitive fixed interest rate of 3.99 percent for the first five years, calculated on a reducing balance basis for applicants with a combined annual income of $50,000. According to Rereiwasaliwa, graduates entering the job market or young couples renting can qualify for up to $300,000 in financing with a combined income of $30,000 to $50,000, making homeownership more attainable for many Fijians.
For those earning over $50,000 annually, Merchant Finance offers a fixed rate of 5.99 percent and a variable rate of 8.99 percent. Rereiwasaliwa also indicated the company’s commitment to refining its loan costs, with a goal of becoming the preferred choice for first-time property buyers in Fiji. He encouraged potential buyers to explore properties they previously thought were out of their financial reach, stressing the company’s solutions cater to their needs.
This new initiative is a hopeful step forward, enabling first-time buyers to achieve homeownership without the barrier of a deposit, thus contributing positively to the housing market and overall economic stability. With the right support, more families can look forward to owning their homes, fostering a sense of security and belonging in their communities.
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