Cabinet has approved the increase in the loan ceiling of the national housing trust

All categories of new borrowers will also benefit from a reduction in the interest rate charged one percentage point.

Information Minister Sandrea Falconer says the new loan ceiling is $5.5 million dollars up from $4.5 million.

The information minister says this has become necessary due the changes in the cost of owning a home.

The National Housing Trust is expected to give more details on the changes.