How to Apply for a First Home Ownership Scheme Loan – Criteria & Application Forms

Following the announcement last Wednesday that the Bank of South Pacific and the Government of Papua New Guinea  have formally signed an agreement to make First Home Ownership Scheme Loans (FHOS) available, BSP have now announced the eligibility criteria and application forms for people to apply for a loan.


Key details of the FHOS

Eligible borrowers will have access to heavily discounted interest rate and preferential loan terms. Below are the key terms of the FHOS:

  • Maximum loan amount of K400,000
  • 4% fixed rate of interest
  • Up to 40 year loan term
  • No bank charges of fees
  • Nil penalties for early repayment of the loan
  • Certain restrictions on the resale or refinancing of the loan


Eligibility Criteria and how to apply

Eligibility Criteria for a First Home Ownership Scheme Loan
  • Be a citizen of Papua New Guinea
  • Provide proof and evidence of a 10% contribution to the equity of the home purchased (for example in the form of a deposit)
  • Be employed and earning a regular income
  • Not have previously owned a home
  • Intend to live in the home (home must be owner-occupied)
Documents that must be provided in support of the application
  • Bank statements if you are BSP customer
  • 3 months of prior bank statements if accounts are not held with BSP
  • Statement regarding current or prior debts owed to banks or other lenders for the preceding 3 months
  • 3 months of prior payslips
  • Evidence of current employment or a copy of your employment contract
How to apply for a First Home Ownership Scheme Loan

Please note: Further eligibility criteria and loan conditions will apply, please seek clarification by visiting the BSP website or a BSP branch.

Commercial terms of the loan
  • Maximum loan amount of K400,000
  • 4% fixed rate of interest
  • Up to 40 year loan term
  • No bank charges of fees
  • Nil penalties for early repayment of the loan
  • Certain restrictions on the resale or refinancing of the loan


How does the FHOS compare to a standard loan?

The following is a comparison of the commercial terms of a First Home Ownership Scheme Loan versus a typical home loan from one of the major commercial banks in PNG such as BSP or ANZ:

  • 4% fixed interest VS current interest rates of approx 8.45% – 9%
  • 40 years for repayment VS typical repayment terms of a maximum of 30 years
  • No bank fees VS a variety of fees and charges levied on the typical home loan
  • No penalty for early repayment VS  charges or ‘break costs’ associated with a standard home loan

On the basis of the above, the First Home Ownership Scheme Loan provides a large incentive for people searching for their first home to buy in PNG.

However, people considering First Home Ownership Scheme Loans should also bear in mind some of the important terms and conditions attached to the loan. For example, the restrictions on the sale of the property or refinancing of the loan is designed, amongst other things, to keep the house in the family for enjoyment by future generations. In addition, it is expected that this restriction will also prevent people speculating on property price rises and selling homes at a profit.

In addition, the requirement that the home be owner occupied will restrict borrowers from renting the property and this must be borne in mind in case a purchaser anticipates future career moves or other lifestyle changes that might require them to move home.

Finally, borrowers should be aware that the First Home Ownership Scheme Loans are still a commercial arrangement between the borrower and BSP, and are not a form of grant, tax break or other concession by the Government. As such, borrowers will still be expected meet their loan obligations.


What do you think of the FHOS? Are the eligibility criteria fair? Will you be applying? Tell us in the comments below

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78 Responses to “How to Apply for a First Home Ownership Scheme Loan – Criteria & Application Forms”

  • I would really love the chance if you manage to help out.

    This is one of the great masive initiate by BSP, which it will resolve the housing problem we are currently facing,,

    I salute BSP for this great idea,,

  • Firmin Gabriel Nanol says:

    I will use some of my savings from NASFUND which I will and plan to lodge an application for a full withdrawal by the end of the year looking at K80 000 as part payment of the home to purchased using a loan.

  • Rowen. Nimb says:

    This is a very good initiative by the Government. I am interested to apply but I do not have any savings. Can I use my Nambawan Super savings as 10% equity to apply to purchase a home?

  • Bukinare says:

    I salute the PNG National Government and BSP bank for this great initiate which will surely assist in solving/minimising the housing problem in the country.

    However, I have one question and that is; what will happen to a borrower who obtained a loan, built/buy a home and for some reason lost his job permanently?

    Please, could a rep from BSP elaborate on that?

  • Rhoda says:

    Thank you BSP,

    I have been longing to have a home of my own for ages.

    God bless you BSP

  • Jeffrey Febi says:

    It is a great assistance from the government. However, there is only one problem: the problem of land ownership. I am pretty sure many who would like to apply, me included, have not land.

    How do we solve this problem when the costs of buying a piece of land are sky high?


  • Phillip says:

    Does this cover the traditional lands?

  • Marjorie Sorii says:

    This is awesome!! Thank you BSP for stepping out to help people like us who are working extra hard to buy homes for ourselves… I’m very much interested, well done BSP!!

    • Support says:

      We agree Marjorie, its a fantastic thing especially for those searching for real estate in Port Moresby and Lae.

  • Wari ila says:

    Great job BSP in partnership with our Government, the criterias are good…..congratulations..

  • Ken Bart says:

    What kind of document do I present if the land is traditionally mine?

  • Lawes Rabura says:

    Hi, i have always wanted a house and Bsp with a partnership with the Government has provided the opportunity now i just have to meet the criteria, thanks Bsp keep up the good work.

    • Support says:

      It’s great that you may now be able to achieve your dream Lawes. Please remember to start your search for your new home at and tell your friends!

  • Alah Hanana says:

    Very helpfull…To all PNG.
    Assessment to confirm weather this will benefit ALL Papua New Guineans… I hope this is not a politics and guide it well for the next generation…

    • Support says:

      We agreed Alah. From everything we can tell this is a genuine and excellent opportunities for Papua New Guineans wanting to purchase a home. Happy house hunting.

  • Bonnie Kare says:

    Applications for BSP bank loan and what are the other documents we will need to submit with.

    Ta bonnie.

  • Boas Graham Tovilie says:

    I am excited but i don’t have the 10% contribution to the equity of the home purchased available in my bank account but have K 60,000.00 NASFUND contribution. Current monthly house rent is K 4,400.00. Will i be eligible.

    Thank you BSP & PNG Government for the brilliant idea, this solve the problem and will have money in account.

    • Support says:

      Hi Boas, that is a great question and one that we have had before. We are unsure about whether you can use NASFUND monies as part of your equity contribution. You will need to visit your local BSP branch to ask this question. Please let us know what the answer is. We hope you are eligible and please remember to visit Hausples when searching for PNG real estate!

  • Molynda says:

    This is an exciting opportunity! i understand that the criteria states that the home should be Owner-occupied. what if the property i am interested in is a Duplex and i would like to live in the other half and rent out the other half with the Intention ONLY to repay my loan quickly?

    Will i still be eligible for this Housing Scheme? Debt is always a liability and whilst the house is an Asset, it will be mortgage first to BSP and i will have been the second interested party to the title. It would be nice to complete this loan quickly (less risk) and own the home completely (title under my name).

    • Support says:

      Hi Molynda, it’s a great question we’re not 100% sure of the answer. From the information supplied by BSP it’s unclear how the definition of owner occupied will apply to a dual occupancy property such as a duplex. Also, the restriction on selling the property prior to repaying the loan may be an issue too if at some stage you want to sell the property you are not living in. We suggest you visit a BSP branch to discuss this. Also, please visit PNG First Home Ownership Scheme Loan page of the BSP website for more information. Please let us know what the outcome is so that we can help others that are considering buying a duplex. Good luck and happy housing hunting!

  • Veronica Ume says:

    Is Nasfund willing to provide the 10% equity from my contributions to Nasfund to assist me to get the loan to buy a house?

    • Support says:

      Hi Veronica, we have had LOTS of questions about using your NASFUND account as part of the deposit and the short answer is we don’t know. We suggest you speak to your local BSP branch. We are also chasing this up at our end and will release more details information once we receive it. Best of luck house hunting!

  • Ruso Perone says:

    From the brief information supplied by BSP and the PNG GOVT it would be a owner occupied home. It should have a restriction on the Title document that the department of Lands would not approve any anticipated transfer of title deeds. That the property be inherited by an immediate family member in event of a death of the loan scheme owner. This is a good initiative that will benefit most of the working class disadvantaged citizens.

    • Support says:

      Hi Ruso, thanks for your thoughts and analysis. It’s also an excellent suggestion about the restriction on the title deed. We will relay this to BSP. Happy house hunting!

  • Mathew Konzel says:

    Yes, the need for housing is a major problem and it will be a relief to many Papua New Guineans of the the burden. I would like to congratulate bought the government and BSP for the opportunity you are offering.

    Availability of land in places like Port Moresby is becoming scare, what is the chance for customary land to build, especially if you have been occupying and lived there for a long and are considering to use this customary land to build your house?

  • Sam says:

    Thank you Hausples for providing a website and information FHOSL.Information is power.
    Just a shout out to all Lae residents if you are in need of a Land in Lae check us out on Facebook ” Aria Land and Property Agents” .

  • Sylvia says:

    Great initiative! I am very keen as housing is a big problem in Pom. However 10% equity…where can an average income earner get that from???

  • Bumai T G Aloc says:

    Thanks GoPNG & BSP for this initiative. I have an old and small run-down property which I intend to renovate and make it bigger to cater for my future family. I can meet the 10% equity, however, I am wondering if BSP will accept my application if I apply for that scheme.

    • Support says:

      Hi Bumai, good question. We suggest makign contact with BSP directly via your local branch to find out more. Be sure to let us know the outcome so that we can tell others!

  • Florence Naso says:

    Wow! what a maverlous & interesting, but people like me the only
    funds that will maybe cater for this kind is ‘ NASFUND’ contribution. I belived if BSP & our Government can probably look into this and make a negiotiation on this would be fine to help people like me to at least have a house of my own for future..etc..

  • Grace says:

    Great initiative. I note one of the eligibility requirements of not having previously owned a home. I did own a home but sold it some years ago. I am now renting a place and genuinely want to buy a home under this scheme. Are there any flexibilities?

  • Dulcie Pose says:

    This is awesome!! Thank you BSP but one question I have.

    Who’s Eligible to obtain Loans in-terms of aging ? What’s the required age?


  • David Levo says:

    This is great initiative by the GoPNG in partnership with BSP. You can use Nasfund and Nambawan Super to meet the 10% equity. However, main conditions of the FHO scheme require acquisition of state leased land if building without any structure and if purchasing the property must be up to 6 months old. Finding vacant state lease land is daunting task in itself to meet this requirement.

    I have this situation where I’m currently renting but my father has transferred ownership of a previous Govt scheme property to me as a first time home buyer. I plan to either pull down the rundown house and get a housing loan to rebuild a new one before my family and I move in and live there. I also opt to keep the old house where my extended family currently live in but apply for a consolidated lease and build a separate house for my immediate family and I to live in.

    I am not sure if this would be allowed and feel disadvantaged especially when forced to acquire a rundown property with the transfer as a First time home buyer and yet cannot live there. I am therefore appealing for this condition to be reviewed as I will eventually move in and occupy the property.

    • David Levo says:

      You also cannot use the FHOS loan to refinance an existing housing loan and build or purchase a house on customary land. However, if you are able to liaise with customary landowners to register and convert traditional land to state lease especially within urban areas or perimeter like Pom, Lae, Hagen, Rabaul etc this can be considered.
      This is based on advise I got from a BSP team presentation.

  • Julius says:

    Is this opportunity open to artificial persons as well or limited to natural persons only? By artificial persons I mean small businesses or PNG SMEs where the applicant is the owner of the business applying thru his business name or company for home loan.

    The benefit of applying thru your business name or company is that the interest is deductible for tax purposes; not the case with personal loans.

    Another thing, BSP uses government funding of K200 million to loan to PNG citizens at a cost of 4%. Who benefits from the 4% interest? Will it be revolving and made available to other borrowers? But how soon will the K200 million runs out before the interest component is used?

    Sorry, I don’t think this is the right forum to ask these questions.

  • Ethel says:

    Can the loan also be excessable to self employed individuals? Or is this scheme only targeted at those only in the workforce?

    • Support says:

      Hi Ethel, we don’t believe there is any restriction on self employed people qualifying for the loan provided they can service the repayments. However, you will need to check with BSP.

  • mufuanuc zurete says:

    I am convinced that I will definitely have a family home through this commendable innitiative by the Government of Papua New Guinea and the Bsp.Shall this arrangement clearify the issues that may arise concerning Land in this very commendable,achieveable and very bright innitiatve please?

  • Thanks for this great incentitive;

    Just one question, There is a housing estate that is been established at Jacksons Airport (Airways Hotel side). Just curious if FHOS can be applied for using the BSP FHOS to purchase a home there

    Please advise

    KInd Regards

    • Support says:

      Hi Koia, we wouldn’t have thought that would be a problem, but you will need to inquire directly with BSP.

  • marrian rema says:


    Brilliant incentive by the government and BSP but i think only ‘the big people’ will benefit not an ordinary public servant like me. I have filled out the forms met all the requirements and personally seen an loan officer Port Mores-by with K20,000 cash as my first installment as equity to obtained a loan of K200,000 to purchase an existing property a month ago.

    What i was told i need to produce a land title or a property title as a security ontop of the k20, 000 which i am a first time home applicant and i don’t previously owned a home or land so i can produce a title as a ‘security’.

    what is the logic behind this? I meed some fact clarity.

  • Joe siange says:

    The maximum loan amount is K400,000, If the purchase value of the house is more the K400,000. Is it the same interest rate of 4% and equity apply?. If the answer is no then it is possible to get a separate loan? My partner get the loan under her name and me under my own name but uses to pay for the same house.

    • supporthausples2014 says:

      Hi Joe,

      We have forwarded your inquiry regarding First Home Ownership Scheme.

      You can also visit BSP Website below for further clarification or visit a BSP branch. We have added you as well to the Sales and Rental Alerts. Hope this helps. Thanks!

  • Phill says:

    Marrian, I think the land or property title they’re referring to is the title of the land or house you are intending to buy. The will mortgage that property as security.

  • JAheb Akia says:

    What if I dont own any land currently?

    • supporthausples2014 says:

      Hi JAheb,

      We have forwarded your inquiry regarding First Home Ownership Scheme.

      You can also visit BSP Website below for further clarification or visit a BSP branch. We have added you as well to the Sales and Rental Alerts. Hope this helps. Thanks!

  • keikei says:

    Does the FHOS apply to all major centers of PNG or Port Moresby and Lae only?

    • supporthausples2014 says:

      Hi Keikei,

      We have forwarded your inquiry regarding First Home Ownership Scheme.

      You can also visit BSP Website below for further clarification or visit a BSP branch. We have added you as well to the Sales and Rental Alerts. Hope this helps. Thanks!

  • bob kora says:

    hi there
    this is a great incentive by BSP the the government of PNG,
    I will get back to you as soon as possible.
    this is the opportunity I have been waiting for

  • Verave Mae says:

    I want to commend the National Government and BSP to come up with this scheme which is so close and yet too far from addressing housing. Reading all the responses regarding 10% equity in light of economic trend will still be an issue. The scheme is still a commercial arrangement between the first homeowner and BSP. Why can’t the National Government provide 40% additional grant as a security/equity, and allow NASFUND savings for first home buyers to buy homes and alleviate the housing problems in terms of affordability. Of course there must be a criteria set up for this.

  • Lynnz says:

    Is not this home ownership scheme only for building of a new house or can the money be used to buy a house which is already built?

  • Kelen Kele says:


    I am a widow, and I have been trying to complete my house since my husband passed away 3 and half years ago,

    Do you have any thing for widows, like me, how can I complete my house, has the government taught of widows too.

  • Bob James says:

    This is a good initiative by govt.I am interested to apply but I do not have saving so is it possible to use my Nasfund savings as 10% equity to apply to purchase a home?

  • Miriam Kone says:

    Thank you BSP

    Does the scheme include the purchase of land, please verify and also for the 10% equity for ordinary Papua New Guineans I don’t think everyone has a 10% equity from their personal savings in their accounts but from other savings and loan societies. Housing is a problem in Papua New Guinea why can’t we get loans and the 10% be deducted as loan repayment. please verify and advise.

  • Miriam says:

    Hopefully everyone applying will be accepted. I don’t like to stay with relatives I’d rather be on my own. This days relatives give too much problems.

  • Jomasi Yokir says:

    What are the chances of my loan application being successful if I have land (with title) on a customary land and I meet all other conditions?
    I have a piece of land in Taurama Valley and am in the process of getting it surveyed and registered.



  • Debbie says:

    It is a good initiative by the government and bsp to put up png’s first home ownership scheme. However, a good policy needs to be in place and made to the public to answer all the questions that are being raised. Most of the questions raisef by the people seemed to be unsure answers given.Most average PNG citizens do not have 10% equity, how can they own a home on small income? this is a general question.

    • supporthausples2014 says:

      Hi Debbie,

      We agree on your points though we hope that government can also do something on increasing individual’s income.

      As for the FHOS, We have forwarded your inquiry regarding First Home Ownership Scheme. You may also check this link for additional information re application for the First Home Ownership Scheme:

      You can also visit BSP Website below for further clarification or visit a BSP branch. We have added you as well to the Sales and Rental Alerts. Hope this helps. Thanks!

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