NHT Reduces Deposit Requirement on Open Market Loans for Contributors Earning Less Than $30,000 Weekly

For National Housing Trust (NHT) contributors earning less than $30,000 weekly, the deposit requirement on open market loans will be reduced to two per cent, if the housing solution being acquired is priced at or below $14 million.

The initiative will commence on July 1, 2025.

Prime Minister, Dr. the Most Hon. Andrew Holness, made the announcement while outlining a number of initiatives that will be implemented by the National Housing Trust (NHT), during his contribution to the 2025/26 Budget Debate in the House of Representatives on March 20.

The initiatives are geared towards improving affordability, access, sustainability and equity.

He said, currently, the NHT provides 100 per cent mortgage financing to mortgagors for its scheme solutions.

“For housing units and house lots purchased by NHT contributors on the open market, the NHT provides a maximum of 95 per cent financing, requiring prospective mortgagors to finance the deposit of five per cent. The inability to find the deposit for property figures prominently among the impediments to home ownership,” he added.

The Prime Minister noted that starting July 1, 2025, the service charge for prospective mortgagors who earn $30,000 or less each week will be reduced from two per cent of the loan amount to zero.

He informed that for prospective mortgagors earning between $30,000 and $42,000 per week, the service charge will be reduced from five per cent of the loan amount to two per cent.

“Prospective mortgagors earning $42,001 per week and above, their service charge remains at five per cent,” Dr. Holness said.

Furthermore, he said that effective July 1, 2025, private-sector mortgagors will have the option for either a cash refund or the application of their refund amounts to their existing mortgage obligations, provided that the loan is free of arrears.

The Prime Minister pointed out that this will be assessed on a year-by-year basis based on the NHT’s cash flow position.

“This is big. A lot of people look forward to their refund. Now… private-sector persons who have mortgages will have the same option as the public-sector worker,” he said.

Currently, all contributors who do not have a mortgage processed directly at the NHT, are eligible for a cash refund of their contributions as they fall due.

However, he noted that public-sector workers are able to access cash refunds even while servicing a mortgage, noting that this option is not currently available to private-sector mortgagors.