First Home Ownership Scheme (FHOS) Loan FAQ

    • What do I need to provide when applying for a First Home Ownership Scheme Loan?

      Answer

      BSP's home loan application requirements for the Housing Scheme are:

      a. Requirements to purchase a newly constructed home built not more than six months old:

      A fully completed BSP First Home Loan Application;

      • Three (3) latest pay slips (provide employment contract if applicable)
      • Letter of Offer disclosing the selling price of the property under purchase
      • Acceptance of letter of offer from vendor
      • Copy of the Title Deed
      • Bank statement or other financial statement showing regular income received in the last three months if account is held with another bank or financial institution;
      • Confirmation letter of employment from employer disclosing salary and housing allowance (if any) or copy of contract of employment (if employment is on contract basis);
      • Evidence and proof of 10% equity
      • A statutory declaration sworn by the applicant for a home loan declaring that they and/or their partner/spouse do not own individually or jointly with themselves or any other person any home or Land under a State Lease and that they are first home buyers;
      • If the applicant does not have a BSP account, he/she will be required to establish such an account with BSP before making an application; and

      b. Requirements to construct a home for owner occupancy comes with conditions such as

      • Building plans/specifications
      • Building plans must be approved and stamped by the Building Board, Water and Sewerage, Fire and Electricity Authorities
      • Engagement of Certified Contractor:

      Provisions of Builders Insurance Policy Covering:

      • Worker's compensation insurance
      • Contractors all risk insurance - with BSP's name included
      • Public Liability Insurance
      • Insurer must be an approved BSP insurer
      • Building Board Approval
      • Copy of quotations and copy of work plan
      Loan proceeds will be released progressively upon certification of the work completed
    • How can I source my 10% equity?

      Answer

      The equity can be sourced from personal savings, stocks, bonds, term deposits, proceeds from sale of personal property, Superannuation assistance (housing advance) and assistance form employer by way of Home Ownership grants. Borrowing to raise equity is not allowed.

    • Who is eligible?

      Answer

      The eligible persons for the FHOS is any natural born Papua New Guineas who are employed either in the public service or private sector and who with their partners (married or defacto) do not own or part own any property on state leased land.

    • Can I build on traditional land?

      Answer

      No, The FHOS loan is for the purpose of constructing a property on a State Lease land or the purchase of a newly constructed property on a State Lease land.

    • What fees are to be charged for this product?

      Answer

      The only bank fee that will be charged for this product is the 1% establishment fees. All other bank fees will not be charged.

      Government and statutory fees are still applicable. I.e. National Land rental, insurance, provincial government charges and Department of Lands charges etc.

    • Am I eligible if my name is not registered on an existing state lease title owned by my partner?

      Answer

      If your partner (either de facto or married) owns an existing property either individually or jointly you are not eligible for FHOS. 

    • Am I eligible if I have bank accounts with another Bank?

      Answer

      Yes, provided that you transfer your primary salary account to Bank of South Pacific and also provide a bank statement indicating showing the transactions for the last 3 months as well.

    • Can I re-finance my outstanding home loan?

      Answer

      No, this is not a re-financing loan.

    • Can I apply as a joint borrower?

      Answer

      Yes, provided that you and your co-borrower do not already own State Lease properties either individually or jointly.

    • Is Bank of South Pacific providing land and building contractor?

      Answer

      No, the land and the building contractor have to be provided for by the client. The builder contractor has to meet the conditions and requirements set out by BSP.

    • What are the conditions and requirements for building contractors?

      Answer

      These are the conditions that the building contractor must meet:

      • Building plans/specifications
      • Building plans must be approved and stamped by Build Board, Water and Sewerage, Fire and Electricity Authorities
      • Engagement of Certified Contractor
      • Provisions of Builders Insurance Policy Covering:
      • Worker's compensation insurance
      • Contractors all risk insurance - with BSP's name included
      • Public Liability Insurance
      • Insurer must be an approved BSP insurer
      • Building Board Approval
      • Copy of quotations and copy of work plan