Prospective homeowners who are contributors to the National Housing Trust (NHT) will, in a matter of months, be able to benefit from a 15 per cent increase in the loan limit offered by the agency.
Effective July 1, 2023, the NHT will increase the loan limit to a single applicant by $1 million, moving the sum from $6.5 million to $7.5 million.
In his contribution to the Budget Debate in Gordon House on Thursday, Prime Minister Andrew Holness said the adjustment will bring the maximum benefit in closer alignment with prevailing market conditions.
And 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 incentivise housing developments with affordable options for low-income earners.
He said that the NHT will continue to provide 100 per cent financing for its 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 introduce a new interest rate band effective July 1, this year, for persons earning more than $100,000 per week.
Persons in this income category will now 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.
The loan limit has also been revised for three co-applicants with funding to move up from $19.5 million to $21 million.
In 2022, the NHT reintroduced its policy to allow up to three contributors to co-apply for a single NHT scheme unit (two-bedroom homes or larger) to better improve affordability.
According to Holness, a key provision of this policy is that proof must be established that the applicants are bona fide family members.
