Boost for home seekers

Prime Minister Dr Andrew Holness announced a raft of changes in National Housing Trust (NHT) policies Tuesday, doling out benefits as he made his case for a third term ahead of parliamentary polls later this year.

The changes, which take effect July 1, come amid marked debate over what has been dubbed a housing crisis as many Jamaicans feel priced out of urban centres and the wider market.

In a five-hour-long contribution to the 2025-2026 Budget Debate, Holness announced an expected increase in the NHT’s loan limit, two years after it had done so in 2023.

“I’m pleased to announce a further increase. The individual loan limit will increase from $7.5 million to $9 million. For two co-applicants, the combined maximum loan limit will increase from $15 million to $17 million, and, for three co-applicants, it will be increased from $21 million to $23 million,” said Holness in the House of Representatives.

The same will obtain for contributors constructing units.

Further, he said if an individual mortgagor is purchasing a unit at $14 million or less, NHT will lend up to $12 million, “subject to availability”.

Holness said the move is to counter the practice of developers increasing the prices for houses in tandem with the ceiling increase.

“It is the most frustrating thing. Yes, it is a matter of economics. When you increase demand, more people are chasing houses than there are houses in the market. The competitive system is going to increase the price. So, what we have done is to give a greater loan limit for houses that are going to be at what we call affordable price points,” the prime minister said, adding that this is $14 million for the NHT.

He said a policy directive has been given to the NHT to direct all its resources to houses that are around that price point.

“The NHT will not get involved in any new development of houses above this price point,” Holness declared, adding that the “real housing crisis is in the low income and affordable housing market”.

Meanwhile, for NHT contributors earning less than $30,000 weekly, the deposit requirement on open market loans will be reduced to two per cent if the housing solution being acquired is priced at or below $14 million.

The service charge on mortgages is also to go down from two per cent of the loan amount to 0 per cent for contributors earning less than 30,000 weekly, while, for prospective mortgagors earning between $30,000 and $42,000 weekly, the service charge will be reduced from five per cent to two per cent.

Potential buyers earning above $42,000 weekly will continue to pay the 5 per cent, Holness said.

The NHT is modifying its eligibility requirement for home grants for minimum wage earners contributing for a minimum of seven years, Holness said, creating access for more contributors. He said the maximum qualifying income for home grants of $3.5 million will now be $30,000 per week.

Holness said the trust is mindful that housing construction can be challenging, in light of the increasing cost of labour and materials. The prime minister said, as a result, a number of contributors are unable to complete construction or bring it to a habitable state.

He said, in cases where a current or retired contributor, earning $30,000 or less weekly, accesses a ‘build on own land’ or construction loan benefit for a house with two or fewer bedrooms that has remained incomplete for two or more years, the NHT will offer the mortgagor a loan of up to the difference between the balance of the borrower’s current loan and a limit of $11 million, subject to affordability.

Where this additional fund cannot bring the house to a habitable state or, in the case of a pensioner, there is insufficient income to support a loan arrangement, the NHT may provide a home grant of up to $3.5 million to assist in bringing the unit to completion.

Holness said the NHT will also expand its institutional loan programme and pursue partnerships with hospitals through the health ministry and regional authorities to provide housing for employees in the public health system. He said, where possible, the houses will be constructed on hospital compounds.

He said, already, preliminary discussions are underway with the University Hospital of the West Indies and another rural hospital, which he did not identify, under the programme.

“So we’re going to see some houses finally built for our doctors and nurses,” he said.

In four months, Holness said, private sector mortgagors will have the option of either a cash refund or have it applied to their existing mortgages, in line with what obtains for public sector mortgagors.

The loan must be free of arrears.

“This will be assessed on a year-by-year basis based on the NHT’s cash flow position, but this is big. This is big. A lot of people look forward to their refund,” he said.

The NHT is also set to cut the waiting time for accessing home improvement loans from 10 years to seven, and increase the loan limit from $3.5 million to $5 million.

kimone.francis@gleanerjm.com