MERCHANT Finance has introduced an exciting new zero-deposit home loan tailored specifically for first-time home buyers. According to Chief Executive Officer Veilawa Rereiwasaliwa, this innovative product is designed to assist individuals who are newly employed, couples just starting their families, and renters looking to transition into homeownership but lack the funds typically required for a deposit.
Highlighting the current market challenges, Rereiwasaliwa pointed out that many banks necessitate a deposit of 10 to 20 percent of the home’s purchase price. He noted that the 20 percent requirement can be a significant hurdle for many working individuals, often forcing them to wait years to save enough for a deposit. Unfortunately, by the time they manage to save, property prices may have increased, further complicating their plans to buy a home.
For those eligible, the mortgage package offers a competitive interest rate of 3.99 percent fixed for five years, calculated on a reducing balance basis. This rate is available to those with a combined annual income of around $50,000, allowing them to finance homes up to $300,000, making homeownership more attainable for many families in Fiji. For combined annual incomes exceeding $50,000, the fixed interest rate is set at 5.99 percent, with a variable rate of 8.99 percent.
Rereiwasaliwa emphasized the company’s commitment to enhancing the affordability of loans, stating that as they improve their funding costs, they intend to lower interest rates as well. The goal is for Merchant Finance to become the preferred choice for prospective home buyers, encouraging them to explore properties they might previously have considered out of reach.
This new initiative not only addresses the pressures faced by aspiring homeowners but also bears the potential to invigorate the housing market by making it more accessible. The move is a positive step toward providing solutions for those dreaming of homeownership in Fiji, allowing families to take significant steps toward financial stability and security.
Overall, this announcement represents a beacon of hope for many individuals and families in Fiji, as it opens new doors for homeownership and financial independence.
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