May 10
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NHT housing benefit changes overview
The following message and document were released regarding Jamaican real estate after the initial announcement given by Prime Minister Bruce Golding on April 20, 2010, the National Housing Trust will implement a series of policy changes to:
- Improve the prospects of home ownership among NHT’s contributors by improving access and affordability;
- Lessen the burden of mortgage payments on existing mortgagors;
- Stimulate growth in the residential construction sector.
The policy changes are in the areas of:
- - interest rate reductions for new and existing mortgagors
- - loan ceiling increases
- - special loan arrangements for contributors, particularly those in the lower income bands
- - special interest rates for Public Sector employees
- - special interest rates for new mortgagors aged over 55 years
- - reduced lending rates for private developers.
This new raft of policy changes is not expected to jeopardize the NHT’s financial viability. At the end of the first year of implementation of these policies (FY 2010/2011), the Trust projects a net surplus of $1.3 billion and an estimated $17.7 billion in cash/investments. By the end of 2012/2013, the projected net surplus will be about $0.6 billion with approximately $14.7 billion in cash/investments. To facilitate the increased expenditure, the NHT will reduce the annual interest paid on contributions from 3% to 2%.
In order to view this government document in it’s entirety, follow this link: http://www.nht.gov.jm/sites/default/files/NHT_Policy_Changes_-_April_2010.pdf
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