The Jamaica Mortgage Bank (JMB) will be implementing a Home Deposit Financing Programme, in an effort to make home ownership more accessible to Jamaicans.
This was disclosed by Minister with responsibility for Housing, Hon. Dr. Morais Guy, during his contribution to the 2012/13 Sectoral Debate in the House of Representatives on July 10.
"It has long been recognised that finding a deposit continues to be a major hurdle to home ownership for many Jamaicans," Dr. Guy said.
He informed that as such, the JMB, in its quest to find innovative responses to this problem, is developing a Home Deposit Financing Facility (HDFF).
Under the HDFF, the JMB will make funds available to financial intermediaries for on-lending to their customers as a deposit loan.
The maximum amount which will be given as a loan will not exceed 15 per cent of the sale price of the property and the property being acquired should not exceed $15 million.
Additionally, Dr. Guy informed that under the Construction Financing Programme, the JMB will finance up to 100 per cent of the construction cost (infrastructure and house construction cost), and will be seeking to fund housing construction projects with unit prices of $12 million and below, at an interest rate as low as 9.95 per cent to developers.
He said that in this regard,the JMB projects to finance over 7,000 housing solutions under its medium term construction financing programme from 2012/13 to 2016/17.
By Athaliah Reynolds-Baker, JIS Reporter