Construction Loan Limit for NHT Serviced Lots Increased

Prime Minister, the Most Hon. Andrew Holness, says that the loan limit for construction on National Housing Trust (NHT) serviced lots has been increased.

The new limit will now be calculated as the difference in price of the NHT’s two-bedroom unit in the scheme where the lot is located and the price of the lot.

“The limit on this loan will remain at two times the individual’s loan limit less the mortgage on the lot in cases of co-application by two NHT contributors,” the Prime Minister said while making his contribution to the 2019/20 Budget Debate in the House of Representatives on March 19.

He noted that, previously, the construction loan limit was between $2 million and $2.5 million – the difference between the price of the serviced lot and the NHT loan limit – which was deemed insufficient.

“The data collected from the surveys conducted by the Trust on the Serviced Lot Programme, revealed that approximately 65 per cent of the recipients of this product type opined that the amount allowed by the NHT for the construction of a unit on the lot is inadequate,” he said.

To encourage uptake of this loan type, Mr. Holness said that the NHT will apply the necessary moratorium to facilitate ease of paying rent while enabling persons to simultaneously service their mortgage.

“However, recipients will be expected to begin building within three years of the loan being disbursed. Failure to commence construction will result in the lot reverting to the NHT,” Mr. Holness advised.

With the new arrangement, the Prime Minister noted that a person who purchases a serviced lot “now has a greater capacity to actually start construction”.