The Fiji Development Bank (FDB) has highlighted that escalating house prices and a constrained supply of land are making home ownership increasingly unattainable for many Fijians, especially in urban areas where the pressure on affordability is most intense. According to Kinijoji Bakoso, FDB’s Manager for Marketing, Events, Communications, and Customer Advocacy, the continued rise in residential property prices over the last five years has outpaced the growth of average incomes, creating significant barriers for local buyers trying to enter the market.
The bank emphasizes that the strong demand for rentals is indicative of the difficulties families face when attempting to transition from renting to owning a home. This challenge is compounded by limited options for affordable housing and tradeable land.
In response to these issues, Bakoso points to the Government’s recent reintroduction of FDB housing loans as a critical development aimed at providing support for low- and middle-income earners. Under the new FDB Home Choice Loan initiative, households with annual earnings below $50,000 can now secure housing loans at a fixed interest rate of 3.99 percent for five years through a collaboration with the Reserve Bank of Fiji.
Additionally, these households may be eligible for the Government’s first home purchase grant, which offers up to $15,000 for home purchases or $30,000 for new construction. The program has also expanded eligibility for those earning between $50,000 and $100,000, who can receive FDB home loans along with governmental grants of $5,000 for home purchases and $20,000 for construction purposes.
FDB has extended its assistance to households earning over $100,000 a year via alternative loan packages, reinforcing the bank’s commitment to improving access to home ownership in the face of ongoing market challenges. This initiative reflects a proactive approach to tackling the housing affordability crisis and offers a glimmer of hope for many families aspiring to own their homes.