Bank South Pacific spends K61 million on home loans

 THE Bank of South Pacific has funded more than 160 loans totalling K61.8 million for first home-buyers under its First Home Ownership Scheme.
The product was launched in 2014. Home loan manager Richard La’a said the majority of first home-buyers lived in Port Moresby.
“The interest has remained high from young professionals to long-serving employees in both the public and private sectors,” La’a said.
The scheme is a joint initiative between the Government and the bank.
The Government created a long-term deposit base to address liquidity and market risks related to long-term lending such as housing finance. This is to allow BSP to provide housing loans for first home borrowers over a 40-year term and at a 4 per cent per annum interest rate.
“It is the lowest interest rate on any home loan product offered in the market despite the long repayment period,” he said.
“The loan amount range allows for a minimum of K200,000 and a maximum amount of K400, 000.
“There are special conditions that apply to the FHOS loan.
“Individuals can put up 10 per cent as equity.
“This equity can be sourced from your available savings or superannuation savings.”
People have been encouraged to build a savings account and plan ahead to save for the FHOS equity.
“It is the intention of the partnership arrangement with the Government to have clearly defined set of eligible purposes to guide potential borrowers who are attempt to benefit from the first home ownership scheme,” La’a said. He said many had already shown interest.