Merchant Finance has unveiled a groundbreaking zero-deposit home loan product specifically designed for first-time home buyers. According to the company’s Chief Executive Officer, Veilawa Rereiwasaliwa, this initiative targets individuals who have recently entered the workforce, newly established families, and tenants who aspire to own a home but lack the necessary funds for a traditional deposit—typically a prerequisite set by commercial banks.
Rereiwasaliwa highlighted the significant obstacle faced by many prospective home buyers: banks’ deposit requirements, which commonly range from 10 to 20 percent of the home’s purchase price. He noted that a 20 percent deposit can be prohibitively high for most employed individuals, forcing them to wait years to save up. Unfortunately, as they save, property prices can increase, making home ownership seem less attainable.
The new loan product offers a competitive fixed interest rate of 3.99 percent for the first five years, applicable to those earning a combined annual income of $50,000. This approach aims to make home ownership more accessible, particularly for recent graduates or young couples currently renting. Rereiwasaliwa emphasized that this income bracket could qualify for financing up to $300,000, thus making the dream of owning a home more realistic for many in Fiji.
For individuals and families earning $50,000 or more annually, a fixed rate of 5.99 percent is available, along with a variable rate at 8.99 percent. Rereiwasaliwa further mentioned that Merchant Finance is committed to improving its loan costs and rates, with the goal of becoming the preferred choice for buyers seeking their first property.
As part of its initiative, the company encourages potential buyers to explore properties that previously seemed out of reach, assuring them that a viable solution is now available.
This innovative approach could reshape the housing market by offering more opportunities for homeownership to those who might otherwise be excluded, creating a more inclusive environment for new homeowners in Fiji.
Summary: Merchant Finance has introduced a zero-deposit home loan to help first-time buyers, targeting recent graduates and families. With favorable interest rates and an emphasis on accessibility, this initiative aims to alleviate the financial burden of homeownership, encouraging Fijians to explore property options they previously thought unattainable.
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