As part of the Government’s effort to enable more Jamaicans to own their homes, the Jamaica Mortgage Bank (JMB) will be assisting buyers with sourcing their deposits.
This has been a major hurdle for many persons, Minister without Portfolio in the Ministry of Transport, Works and Housing, Dr. Hon. Morais Guy, explains.
The JMB’s Home Deposit Financing Facility (HDFF) will make funds available to financial intermediaries, such as credit unions, for on lending to customers as a deposit loan.
“The maximum amount which will be given will not exceed 15 per cent of the sale price of the property and the property being acquired should not exceed $15 million,” the Minister explained, as he addressed a Jamaica Chamber of Commerce quarterly parish chambers of commerce industry luncheon, at the St. Mary Civic Centre on May 18.
Meanwhile, the Minister told the gathering of business persons that changes are being made to the Mortgage Insurance Act to increase the percentage of the appraised value of a property on which a mortgage loan facility is being granted, from 90 to 97 per cent.
This will reduce the burden of high down-payment, which currently is between 10 and 15 per cent, and closing costs to approximately three to five per cent.
“Essentially, the proposed amendment is aimed at making mortgages more affordable to homeowners,” the Minister informed.
Contact: Alphea Saunders