Merchant Finance has introduced an innovative zero-deposit home loan designed specifically for first-time homebuyers. According to Chief Executive Officer Veilawa Rereiwasaliwa, this new financing option targets individuals who have recently entered the workforce, new families, and renters hoping to secure a home but lacking the necessary funds for a traditional deposit—typically required by commercial banks.
Rereiwasaliwa pointed out that many individuals face challenges when saving for a deposit, often required to be between 10 to 20 percent of the property purchase price. He emphasized that a 20 percent deposit is frequently unattainable for most working individuals, who often find that by the time they have saved enough, property prices have already increased.
The company’s zero-deposit home loan offers an attractive fixed interest rate of 3.99 percent for a five-year period, targeting those with a combined annual income of $50,000. This initiative aims to make home ownership more accessible for many in Fiji. For young professionals or couples with a combined income ranging from $30,000 to $50,000, they can potentially access up to $300,000 in financing, making the dream of homeownership more achievable.
For applicants earning $50,000 or more, Merchant Finance offers a fixed rate of 5.99 percent, with a variable rate option available at 8.99 percent. Rereiwasaliwa also mentioned ongoing efforts to enhance the company’s loan costs, with the hope of improving interest rates further in the future. The overarching goal is for Merchant Finance to become the preferred choice for individuals looking to purchase their first home.
This initiative is particularly timely, given the challenges many face in today’s housing market. By providing a zero-deposit option, the company is fostering hope among potential homeowners who may have otherwise felt discouraged by traditional requirements.
In conclusion, Merchant Finance is taking significant steps to support first home buyers, creating pathways toward homeownership that were previously out of reach for many. This shift not only addresses a critical market need but also reflects a commitment to encouraging families and individuals to invest in their futures.
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