Has the Government made owning a home easier for NHT contributors?

Homeownership Now Easier

The Government has made it easier for Jamaicans to own a home by increasing financing available through the National Housing Trust (NHT).

Effective July 1, the loan limit for a single applicant has increased by 15 per cent, moving from $6.5 million to $7.5 million.

They can also access up to $8.5 million for a housing solution priced at $12 million or less, under the new policy.

Joint applicants are able to borrow up to $15 million, while three co-applicants are able to access as much as $21 million.

Another new policy is a revised interest rate band of five per cent, effective July 1, for persons earning more than $100,000 per week.

The changes are intended to incentivise affordable housing development and improve affordability for low-income earners.

In 2022, the Trust reintroduced the policy of allowing up to three contributors to co-apply for a single NHT scheme unit (two-bedroom units or larger) to better improve affordability.

The distribution of the agency’s contributors by income bands shows that 66 per cent are eligible for mortgage financing at zero per cent interest, while less than eight per cent will fall into the new five per cent rate bracket.

One very crucial change that came into effect on August 1, which also aims to widen fundng options, is the NHT’s External Financing Mortgage Programme (EFMP).

This new programme offers contributors a wider range of financial institutions from which they can access their NHT loans, among other benefits.