NHT Housing Benefit Policy Changes as of July 1, 2016.

- Friday 1, July 2016 -

The National Housing Trust has increased its individual loan limit for some new applicants, from $4.5 million to $5.5 million and reduced the interest rate on loans to contributors who apply as of November 1, 2015.

The policy changes announced today, are as follows:

1. New Loan Limit for Construction Purposes

Applicants to benefit from the increased loan limit are those who are buying properties in new housing developments as well as those constructing new housing units. NHT Board Chairman, the Hon. Dr. Carlton Davis has said this policy change is a move to stimulate the construction of new housing developments and to boost the purchasing power of contributors.

2. Reduced Interest Rates

To improve affordability, the Trust has reduced interest rates by one percentage point across the board, for all new loan applicants.

Effective July 1, new borrowers earning between $7,500 and $12,000 weekly will receive their loans at 0% interest rate, down from 2% and in some cases, 4%.

With this adjustment, new borrowers earning $12,000 weekly will be able to afford a loan of as much as $4.89 million, up from the $2.97 million they would have previously afforded. New applicants earning between $12,001 and $20,000 weekly who, prior to July 1, received loans at 4% will see a reduction in rates to 2%.

New applicants earning $20,001 - $30,000 weekly will be eligible for loans at 4%, down from 6%. The prevailing 2% interest rate discount for the disabled and senior citizens, as well as the 1% reduction for public sector workers will continue to apply.

“Construction is a vital economic driver. It provides jobs for thousands of skilled workers and increases the net worth of persons who buy homes.” Chairman Davis has stated. “Over that time we have seen an increase in costs and this has restricted the ability of would be homeowners to buy new properties. As the primary mortgage source for thousands of Jamaicans, we are moving to address that situation.”

NHT last increased its loan limit and lending rates in November 2015.