Easier, Expanded Loan Access for NHT Contributors

National Housing Trust (NHT) contributors now have easier and expanded access to loans under the agency’s External Financing Mortgage Programme (EFMP).

The programme, which came into full effect on August 1, represents an improvement to the company’s financing arrangements, as it provides an increased list of mortgage institutions through which qualified contributors can obtain their full NHT loan benefits.

It replaces the previous Joint Finance Mortgage Programme (JFMP), providing contributors with loan options at the same low interest rates they would generally receive from the NHT.

Prime Minister, the Most Hon, Andrew Holness, said that the move is aimed at increasing homeownership across all income levels in Jamaica.

Under the EFMP, all mortgagers wishing to use their NHT loan benefit, along with additional financing, will have their mortgage processed through one of the institutions under the programme.

NHT contributors who are only accessing their NHT benefit will also have the option of processing their loan via an EFMP mortgage partner.

The EFMP forms part of a set of strategic changes in the optimisation of NHT’s loan origination and processing services.

To date, 10 institutions have signed on to the EFMP, namely COK Sodality Credit Union, National Commercial Bank (NCB), The Bank of Nova Scotia Jamaica Limited, JMMB Bank Jamaica (Limited), JN Bank Limited, The Victoria Mutual Building Society (VMBS), First Global Bank Limited, First Caribbean International Bank (Jamaica) Limited (CIBC), Sagicor Bank Jamaica Limited and Sagicor Life.

Senior General Manager for Finance at the NHT, Dwight Ebanks, tells JIS NEWS that the EFMP provides for greater ease of transacting business for customers, as they will be interacting with a lending institution with which they are already familiar.

“You will go to your preferred mortgage partner and it’s a one-stop shop to process your loan whether you want only your NHT benefit or you want your NHT benefit along with additional funds from the financial partner,” he notes.

To facilitate the programme, the NHT has continued its partnership with several financial institutions, including credit unions and all major commercial banks from the previous JFMP programme.

“The financial partner will process you and provide you with your financing, whether to buy or to build. The NHT loan will be on the same terms you would get at the NHT, so there are no negative implications for the customer; you still get your preferred NHT rate. You are still an NHT customer, so if there are any issues you still have access to the NHT,” Mr. Ebanks outlines.

The Senior General Manager adds that under the EFMP, low-income contributors earning between minimum wage and $30,000 weekly, along with persons requiring special subsidies such as the Home Grant, and those applying for NHT scheme benefits, will continue to have their mortgages processed at the agency.

“Once you need additional financing above your NHT entitlement then you must go to one of our financial partners, but if you earn $30,000 or less [which are] those who qualify for the NHT loans at zero per cent, then you can still come and get your loan at the NHT. That’s a large majority of our contribution base who earn at that level,” Mr. Ebanks says.

The objective of the EFMP is to leverage the power of financial institutions, enhance the supply of NHT mortgages, and free up funds for reinvestment in the development of additional housing solutions.

Through the programme, mortgagors are also able to access their NHT contribution refunds, which were previously inaccessible under the Joint Mortgage Financing Programme.

“What normally happens at the start of each year, your contributions that are due for refund are applied against our NHT mortgage. If you access your benefit through the financial partner, you now have access to get those refunds each year into your hands and that is a significant benefit again to a lot of our contributors,” says Mr. Ebanks.