New NHT Financing Framework

The National Housing Trust (NHT) has developed a new financing and product delivery framework that is intended to significantly increase the supply of new housing solutions.

The move is in keeping with the Trust review of financing options that would substantially increase the amount of funding available for new housing construction.

Prime Minister, the Most Hon. Andrew Holness, made the announcement during his 2022/23 Budget Debate presentation in the House of Representatives on Thursday (March 17) under the theme ‘Building Our Jamaica: Sowing Seeds for Peace, Opportunity and Prosperity’.

Mr. Holness, who has portfolio responsibility for the NHT, said the new framework would entail arrangements with Bank of Jamaica (BOJ)-regulated partner mortgage lending institutions to fund full mortgage disbursements, up to $6.5 million, to NHT contributors.

The disbursement, including the NHT’s portion, will be fully financed by the partner institution.

“The NHT will then pay directly to the institution the difference between the interest rate charged by the institution and the interest rate charged by the Trust. This will relieve the NHT of the cash required to fund the principal amount of the mortgage upfront, as this will be funded by the partner institution,” Mr. Holness outlined.

He indicated that the NHT will have an ongoing obligation to fund the interest rate subsidy between the mortgage lending rate of the partner institution and that of the Trust.

“It is important to note that the mortgagor will not be negatively impacted, as the interest payment will be exactly the same as if the funds were accessed directly from the NHT,” the Prime Minister assured.