Residential and Rental

A great value housing loan for all your property needs

What is a housing loan?

Housing Loans are made for purchase, construction, renovation, extension of residential accommodation for borrowers themselves, and their direct family or for rental purposes. It also includes fencing, landscaping, site preparation and fixtures such as Hot Water Systems, built in furniture, fixed floor covering. Moveable furniture and equipment should be financed under Personal Loans. The overall objective for every housing loan is to reassure safety in Terms of security, ability to repay and profitability to the Bank.

Preference is also given to established clients of the Bank with good track record and the view to retaining such good clients with the Bank rather than going elsewhere.

Why go with us?

Tonga Development Bank’s Residential and Rental loan has:


8.00% pa

interest rate

Residential and rental
Variable Interest Rate8.00% pa
CRR B8.50% pa
CRR C9.00% pa
Minimum Amount$5,000 
DepositVariable according to loan size but not less than 10% of total cost
SecurityThe house and to include a mortgage on land where house is to be built. Other assets as security.
Maximum Term in YearsMaximum terms of 12 years, but shorter term is better.  
Repayment percentage SDNormally by salary deduction with 50% salary deduction allowed, 60% can be considered depending on total salary and other reliab
FeesCan be charged to account.
DisbursementDirect to supplier or contractor
Quotation of costsThere must be two quotations from two different builders or contractors, for more realistic estimates.

Applicants considered under this Sector should be:

1. Minimum cash deposit of 10% of the total project cost of the building for the new property if total cost is < $20,000 and rising to 35% if > $20,000 depending on the fulfilment of other requirements such as security coverage, repayment term and percentage salary deduction. Any request for deposit below the required percentage must be submitted to the next higher approving authority.