The Housing Authority of Fiji recorded a 14 percent increase in the number of home owners using their superannuation funds for home loan deposits, mortgage debt reduction and paying off home loans.
The Authority’s Chief Executive Officer Alipate Naiorosui said, “the increase in transfers signifies that more people are taking advantage of their housing eligibility that FNPF offers to secure a home for their family”.
The changes saw the Authority register 357 cases for both home loan deposits and a debt reduction amounting to $5.1m for 2011 compared to 306 cases amounting to $4.3m for 2010.
“The increase is a positive indicator because it has resulted in a total of 344 members using the housing eligibility to qualify for a home loan through Housing Authority for both 2011 and 2010 respectively”, Mr Naorosui said.
In 2011, Housing Authority disbursed $12m in loans, in which FNPF member contributions amounted to 41 per cent of total loans and sales against 34 per cent for 2010, in which total home loans and house sales amounted to $12.6m.
This figure represents the fact that Housing Authority has given out at least $1m per month over the last two years and $30m in total since 2009 to date in housing related loans.
Into 2012, an incentive by the Fijian Government to introduce a VAT refund scheme will see new homeowners who build a new home for the purpose of living in it receive a full refund of up to $120,000.
The result ties in with the Housing Authority’s aim of being a dynamic leader in housing and providing excellent service to its current and potential home owners, particularly to low and middle income families.
The Housing Authority and the FNPF continue to meet regularly to ensure this trend continues.