Five families received their Letter of Offer becoming the first recipients of Merchant Finance’s highly anticipated zero-deposit home loan product that was officially launched in Suva yesterday.
The home loan product specifically targets first home buyers, in particular new workforce entrants, new families and or those renting and keen to secure a home but did not have funds for required deposits by commercial banks.
Merchant Finance CEO Veilawa Rereiwasaliwa said with only 12,574 mortgages recorded by the Reserve Bank of Fiji as at September last year out of some 200,000 households in the country, there was a big urge for home ownership.
He said this product was designed with key features that allowed even those with a minimum wage but could make loan repayments to apply for this product.
“We are looking at land subdivision. In the next three years, we are expecting to put up close to 2000 lots to the market, that’s increasing supply,” Mr Rereiwasaliwa said, noting that not enough houses were for sale in the market.
Minister for Housing and Local Government Maciu Nalumisa said the launch of this zero-deposit home loan product was a significant step in the right direction.
He said the zero-deposit feature was transformative and made homeownership more attainable for Fijians who lacked the immediate means for a substantial down payment.
“By offering an innovative game changing solution such as the zero deposit home loan to customers, individuals are provided with feasible financial options that allow Fijians achieve their dream of home ownership,” Mr Nalumisa said.
The features of this loan product include a fixed interest rate for the first five years, financing of up to 90 percent for home construction loan, no compulsory cyclone insurance required for the Central Division, and zero-deposit requirements for first-time homebuyers.
Mr Nalumisa said those features were expected to substantially enhance homeownership opportunities in Fiji, “bringing this aspiration within reach for every Fijian”.
“This new product facility provides affordable lending options to help middle to low-income earners purchase their first homes. Today, Merchant Finance takes a bold and commendable step in complementing these Government efforts.
“By introducing the zero-deposit home loan product, Merchant Finance addresses critical obstacle that has long prevented renters from becoming homeowners. This initiative embodies the potential of public-private partnerships in driving socio-economic development forward.”
NOTE: This article was first published in the print edition of the Fiji Times dated January 31, 2025.
