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:

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.

Reduced Interest Rates

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

This means that new beneficiaries earning up to $7,500 weekly will now enjoy home loans at 0% interest while at the upper end, persons earning over $20,000 weekly will repay loans at a rate of 6%.

New applicants employed to the public sector will benefit from this rate concession while continuing to enjoy the 1% interest rate reduction that had been granted to them in 2010. The interest rate table attached illustrates the concessions.

“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 May 2010.