Merchant Finance has launched a new zero-deposit home loan product in Suva, becoming a beacon of hope for first-time homebuyers. The initiative is particularly aimed at new workforce entrants, young families, and renters who are eager to own a home but lack the financial means for traditional down payments required by commercial banks. This comes at a time when the Reserve Bank of Fiji reported only 12,574 mortgages against nearly 200,000 households, indicating a significant demand for home ownership in the country.
CEO Veilawa Rereiwasaliwa emphasized the urgency for more affordable home ownership options. The company plans to increase housing supply significantly in the coming years, with plans for around 2,000 land lots set to be introduced to the market.
Minister for Housing and Local Government Maciu Nalumisa heralded the launch as a pivotal move towards making homeownership more accessible for Fijians, especially those who may lack substantial financial resources. He noted that the zero-deposit feature of the loan is transformative and allows individuals to pursue their dream homes without the burden of immediate down payments.
The new loan product offers several appealing features, including a fixed interest rate for the first five years and financing options of up to 90% for home construction. Notably, it does not require compulsory cyclone insurance in the Central Division and caters to first-time homebuyers.
This initiative not only enhances homeownership opportunities for middle and low-income earners but also serves as a crucial step in addressing challenges that have long hindered renters from becoming homeowners. It reflects the potential for public-private partnerships to foster socio-economic development in Fiji.
With this innovative approach, Merchant Finance is not only providing practical solutions but also instilling hope for a brighter future for many Fijian families eager to secure their own homes.
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