31,000 Public Sector Mortgagors to Benefit from NHT Refunds

Some 31,000 public sector mortgagors are to benefit from approximately $790 million annually in contribution refunds from the National Housing Trust (NHT), during the next four years.

This was announced by Prime Minister, the Most Hon. Portia Simpson Miller, during her 2013/14 Budget Debate presentation in the House of Representatives, on Tuesday, April 30. Mrs. Simpson Miller spoke on the theme: ‘Jamaica: Going for Growth and Development – Unleashing Our Potential’.

The Prime Minister explained that previously, it was the NHT’s policy that contribution refunds are automatically applied as payments to the mortgage in January of the year when the refund is to be paid. She informed that this restriction will be removed for all public sector workers during the next four years.

“Starting January 1, 2014, public sector workers can opt to apply for the contribution refunds due for the year 2006,” Mrs. Simpson Miller said.

[Read the Prime Minister’s 2013-14 Budget Presentation]

She also informed that public sector workers who received a one per cent interest rate reduction to March 31, 2013, will have this benefit extended for another two years, to March 31, 2015.

The Prime Minister also announced that starting September this year, public sector workers will be given a 15 per cent discount on peril insurance premiums. In addition, they will continue to benefit from a 15 per cent discount below NHT standard insurance rates for the period through to March 31, 2017.

“This will change the previous arrangement where there would be a rebate payment in December each year. We are frontloading this benefit, so that public sector mortgagors will pay less starting in September,” Mrs. Simpson Miller said.

She added that non public sector NHT mortgagors will have no increase in their peril insurance for the current year of coverage starting April 1, 2013 to March 31, 2014.

Explaining the incentives, Mrs. Simpson Miller said the country owes a debt of gratitude to public sector workers.

“This government, through the NHT, is saluting these workers and expressing gratitude with added incentives for this category of contributors,” she said.