Effective July 1, the National Housing Trust’s (NHT) loan limit for a single applicant, will move from $6.5 million to $7.5 million, an increase of 15 per cent.
Prime Minister Andrew Holness made the announcement during his contribution to the 2023/24 Budget Debate in the House of Representatives on Thursday (March 16).
Holness further informed that where a single contributor is buying a housing solution priced at $12 million or less, that individual may access up to $8.5 million towards mortgage financing for the unit.
“This is to incentivise housing developments in affordable housing for low-income earners. This will also create more effective demand for housing solutions at the targeted price point,” the prime minister said.
He indicated that the NHT will continue to provide 100 per cent financing for houses built by the Trust, subject to the availability of funding for such purposes.
In addition, two persons applying jointly will be able to access funding of up to $15 million, up from $13 million.
In 2022, the NHT re-introduced its policy to allow up to three contributors to co-apply for a single NHT scheme unit (two-bedroom units or larger) to better improve affordability.
A key provision of this policy is that proof must be established that the applicants are bona fide family members, and have demonstrable kinship ties, for example wives, husbands, children, and siblings.
“In light of the proposed revised loan limits, three co-applicants will be able to access funding of up to $21 million, up from $19.5 million.
Meanwhile, the NHT is to introduce a new interest rate band of five per cent, effective July 1, 2023, for persons earning over $100,000 per week.
The distribution of NHT contributors by the income bands shows that 66 per cent are eligible for mortgage financing at zero per cent interest, and less than eight per cent of contributors will fall into the new five per cent rate band.
