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:

  • A highly competitive interest rate
  • Available for the purchase, construction, renovation of homes and more
  • Minimum cash deposit of just 10%1

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.


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  Eligibility Guideline – Applicants

Applicants considered under this Sector should be:

  1. Applicants with property or land considered by the Bank to be in a prime location.
  2. Tongan Nationals who hold a legal ownership of the project land.
  3. Tongan Nationals, Residents or anyone with leasehold land or property with remaining lease terms of at least 20 years.
  4. Applicants with good creditworthiness.
  5. One of the borrowers must be the title holder of the project land or property.
  6. Existing good clients of the Bank and collateral coverage should be at least 1.0 Times Bank Security Value (BSV).
  7. Applicants where there existing housing loan is being taken over from another bank in order to lengthen the overall security position of TDB and to ensure repayment capacity through SD deduction. In this instance the term must be restricted up to 12 years.
  8. Ability to repay must be assured from salary assignment. However long established clients of the Bank with excellent repayment records can be considered in the event where SD may not be possible. Other source of income is assured over the term of the loan.
  9. Location - situated in a prime location within the main town area and suburbs. Other outlying areas may be considered on a case-by-case basis

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.