Bank aims to make home loans accessible for clients
15 October, 2019, 10:40 am
THE only local bank in the country has reduced its home loan rate from 7.5 per cent to 6.99 per cent.
HFC Bank’s retail banking manager Tony Ram there has been a steady growth for the past few years.
He said the fixed rate for 12 months was 4.5 per cent which was very competitive in market, as this could actually assist customers to buy a house with ease and really help with budgeting.
“Given our steady growth in our current market conditions our home loan package is still very attractive even while we are reducing our variable rate to 6.9 per cent we have a fixed rate of 4.5 per cent which is still quite low,” he said.
“In fact 4.25 per cent for those under the Reserve Bank of Fiji’s scheme which is 4.25 per cent which is fixed for five years.
“We still remain the only bank to fund home loans with a minimum of 10 per cent equity.”
He said the idea behind this was to make home loans more accessible to the people so the reduction in interest rate was part of their continuing review of the home loan product.
The bank was constantly reviewing their offerings to ensure that it is in line with the market needs.
“We have also now consolidated debt so with your home loan if you have a car or small personal loan you can consolidate it into your home loan so you can make it into one payment so it is quite flexible as well.
“We would like to be the first bank to look at the reduction of interest rate and there is no better way to do it than your home loan product.”
He said the demand for home loan portfolio had been increasing as well with the new subdivisions around Tacirua and Nadi playing a factor.
“There are a lot of homes and subdivisions and HFC is financing a good share of homes in these areas.”
He said the bank would be rolling out the rate charges shortly within this month with effective dates as all home loans customers were after would have the new rates on them.
According to Mr Ram having one year fixed rate would assist customers to settle while a low variable rate would bring about more flexibility in their repayment throughout their entire loan period.