Growing interest in home ownership scheme

 BANK South Pacific says it is seeing overwhelming interest for the first home ownership scheme (FHOS) from Papua New Guineans living in the country as well as overseas. 

The FHOS is a joint initiative between the PNG Government and the bank aimed to provide access to flexible and affordable financial arrangements so all Papua New Guineans could own their own homes.

The deal to do this had been agreed between the two parties in Port Moresby last year.

Yesterday, Governor-General Sir Michael Ogio officially signed the documents on the FHOS product with Bank South Pacific.

Providing an update on the product, BSP’s chief executive officer Robin Fleming said the bank had funded 25 loans at the value of K8.4m. 

“Most of these are in the NCD. But FHOS is not restricted to Port Moresby only.

“BSP has more than 800 loan applications that are going through processing for eligibility for loan,” he said.

“BSP believes that home ownership is a means for ordinary Papua New Guineans, employed in the public and private sector, to establish an asset base that can be passed onto their children. 

“Through the support of government steps are being taken to set up a long-term deposit base which addresses liquidity and market risks associated with long-term lending such as housing finance,” the bank said in a statement.  

“As a result of these actions, BSP will be able to provide housing loans to approved first home borrowers, over a 40-year term and at an interest rate of 4 per cent per annum.

“While there are some conditions to the loans including a maximum loan amount of K400,000, the parties believed that the FHOS will help address housing issues and offer wealth creation opportunities. 

The FHOS is not a guarantee facility.  It is a product that will be offered by BSP adopting a commercial approach.