Port Moresby, 31st May, 2017 | Bank South Pacific (BSP) has reduced its standard Housing Loan Rates by 1% from 8.45% pa to 7.45% pa. The interest rate for the Housing Loan products will be effective from 1 June, 2017.
BSP offers two main Home Loan Products; the BSP Standard Home Loan and the First Home Ownership Scheme (FHOS) loan. The interest rate on the FHOS loans will remain at 4% pa.
“The reduced interest rates on home loan was made with due consideration to the market demand, especially with medium income earners,” said BSP Group CEO, Robin Fleming.
Mr Fleming said, “The demand for housing and home ownership remains high in the market, with increased interest expressed for information and direction on how to obtain home loans with the Bank. BSP continues to take steps to improve the lives of Papua New Guineans. We believe that, with the reduction of the interest rates, it will benefit more people.”
While there has been interest, BSP continues to encourage potential home buyers to have a plan, set goals and start saving for your home equity. The equity requirement under BSP Home Loan is 20% while the FHOS requires 10% equity with special conditions that apply.
Customers who fall outside of the First Home Ownership Scheme (FHOS) can still take advantage of the reduced interest rates and obtain a standard housing loan for a term of 40 years.
Mr Fleming further stated that BSP has also continued to promote a financial inclusion for all customers. This has seen the increase of the number of Fee Free accounts opened, for Kids Savings and Sumatin Accounts. It has also promoted a savings culture by eliminating fees for the Plus Saver Account, which attracts interest rates paid to customer’s savings.
For information on BSP Home Loans or the First Home Ownership Scheme Loan Product, contact us via our First Home Ownership Form!