(Jamaica Gleaner) Beginning July 1 this year, the National Housing Trust (NHT) will increase the loan limit to a single applicant by $1 million.
This adjustment will bring the maximum benefit in closer alignment with prevailing market conditions.
A single applicant will be able to access a loan from the trust in the sum of $7.5 million, up from $6.5 million. This represents a 15 per cent increase in the loan limit.
In making the announcement during his contribution to the Budget Debate in Parliament this afternoon, Prime Minister Andrew Holness pointed out that where a single contributor is buying a housing solution priced at $12 million or less, the contributor may access up to $8.5 million towards mortgage financing for that unit.
The prime minister said the changes are being made to incentivize housing developments of affordable housing for low income earners.
He said that this will also create more effective demand for housing solutions at the targeted price point.
The prime minister said that the NHT will continue to provide 100 per cent financing for NHT scheme units subject to the availability of funding for such purposes.
Two persons applying jointly will be able to access funding of up to $15 million, up from $13 million.
At the same time, the NHT will be introducing a new interest rate band effective July 1 this year for persons earning more than $100,001.00 per week.
Persons in this income category will be able to access loans from the Trust at the rate of five per cent.
The prime minister told the House that less than eight per cent of NHT contributors will fall into the new five per cent band.
