A new zero deposit home loan package has been unveiled this week by a local licensed credit institution, offering a promising opportunity for first-time homeowners in Fiji. Dr. Ram Raju, president of the Nadi Chamber of Commerce, heralded this initiative from Merchant Finance as a significant development that could transform Fiji’s housing market.
Dr. Raju emphasized the timely nature of this offering, which features a zero-deposit requirement and an attractive interest rate based on a reducing balance. He believes this innovative package will energize the housing sector and provide essential support for individuals looking to transition from renting to home ownership.
Merchant Finance CEO Veilawa Rereiwasaliwa noted that this loan option is tailored for first-time buyers, especially those who have just begun working, new families, and individuals currently renting who struggle to save for a traditional deposit required by commercial banks.
The terms of the loan set a fixed interest rate at 3.99 percent for five years for borrowers earning a combined annual income of $50,000. For those with a higher combined annual income of $50,000 or more, a fixed rate of 5.99 percent is offered, with a variable rate of 8.99 percent available as well.
Dr. Raju expressed confidence that this package would mark a pivotal moment in the housing market and positively impact the lives of many aspiring homeowners.
The introduction of this loan package not only reflects a creative solution to a common barrier faced by potential homebuyers but also demonstrates a commitment to enhancing accessibility in the housing market. By bridging the gap for first-time buyers, this initiative could lead to increased home ownership and stability within the community.
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