Minister with responsibility for Housing, Hon. Dr. Morais Guy, says the Government will be taking steps to strengthen the legislative and policy framework governing mortgages, in an attempt to revitalise the housing market.
Dr. Guy made the disclosure on July 10, while making his contribution to the 2012/13 Sectoral Debate in the House of Representatives.
He said as part of this initiative, the administration will be working to strengthen the Secondary Mortgage Market, in an effort to give greater access to mortgage financing and reduced mortgage rates resulting from increased competition.
"The Ministry, through the Jamaica Mortgage Bank (JMB), is focusing on strengthening the Secondary Mortgage Market (SMM). This will provide a source of capital market funding through the JMB, thereby providing liquidity to mortgage lending institutions for the creation of additional mortgages," the Minister informed.
He further noted that since the reactivation of the SMM facility in 2011, much interest has been generated in the mortgage market, and the Primary Mortgage Market (PMM) has become very competitive, resulting in the lowering of interest rates from a high of 16.95 per cent to a low of 9.4 per cent.
Dr. Guy said the bank also projects to finance over 1,500 mortgages over its medium term SMM Programme, starting from 2012/13 to 2016/17.
By Athaliah Reynolds-Baker, JIS Reporter