Mortgage Calculator Solomon Islands

Market overview

Solomon Islands' mortgage market is led by Bank South Pacific Solomon Islands (BSP), ANZ Bank Solomon Islands, Pan Oceanic Bank (POB), and the Bank of South Pacific-owned Solomon Finance, all supervised by the Central Bank of Solomon Islands (CBSI). The SBD is managed against a trade-weighted basket dominated by the AUD, USD and NZD. The economy depends heavily on logging (which is gradually winding down due to deforestation), tuna fisheries, and bilateral aid from Australia, New Zealand, China and Japan. Approximately 87% of land is customary, severely limiting the freehold mortgage market to Honiara and Auki urban perimeters.

Why 10.5% is the typical rate

A rate near 10.5% reflects the CBSI Bokolo Bill rate around 0.5% (limited transmission), thin SBD funding markets, and customary-land collateral constraints that drive lenders toward unsecured or short-tenor pricing.

Tax & regulatory notes

Property transfers attract a 3% stamp duty plus 2% registration fee at the Registrar of Titles, but only the roughly 13% of land that is registered alienated land (Fixed-Term Estate or Perpetual Estate) can be conventionally mortgaged. The Land and Titles Act governs registration, and the CBSI Financial Institutions Act 1998 sets LTV caps typically at 80% for residents. The Solomon Islands National Provident Fund (SINPF) provides housing loans to members as an alternative to commercial bank financing.