High interest in housing scheme

 BANK South Pacific says interest in the first home ownership scheme has been overwhelming since it signed the deal with the State last year.  

The scheme is a joint initiative aimed to provide access and affordable financial arrangement for Papua New Guineans to own their own homes.

BSP has so far funded loans to a total amount of K4.2 million mostly in the National Capital District. 

“Enquiries regarding the first home ownership scheme and requests for home loan applications have been overwhelming from right across the country, including Papua New Guineans working overseas,” BSP said in a statement.

“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 of PNG 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. 

“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 four per cent per annum.

“The first home ownership scheme is not a guarantee facility.  It is a product that will be offered by BSP adopting a commercial approach, albeit over a much longer loan term and at a somewhat concessional interest rate.

“The availability of affordable land and housing packages is essential and this will require the support of the Government and private sector participants from the housing industry.”