Revised Policy On Subsidies For Homeownership

Effective July 1, 2022, the National Housing Trust (NHT) will revise its policy on subsidies for homeownership

Prime Minister, the Most Hon. Andrew Holness, said the revision will see income being the sole determinant in the application of a subsidy.

He said that this will ensure that subsidies “are applied to those [persons] who are most in need”.

The Prime Minister was making his 2022/23 Budget Debate presentation in the House of Representatives on Thursday (March 17), under the theme ‘Building Our Jamaica: Sowing Seeds for Peace, Opportunity and Prosperity’.

Income is not currently considered as an additional criterion as to whether a subsidy can be applied to members within a special group or applicants for a particular development.

Under the NHT’s current business model, subsidies are applied to the Trust’s benefits by one or more of three general criteria – interest rate subsidies for special groups; interest rate subsidies based on income; price subsidies applied to the selling price of a housing solution within a development.

Mr. Holness, who has portfolio responsibility for the NHT, further announced that beginning July 1, 2022, all new loans will be subject to a periodic review.

This to determine whether the level of subsidy given at the opening of the loan is still required or whether a greater or lesser subsidy is needed.

Currently, the interest rate for each applicant is decided on the basis of income at the time of application and is applied over the life of the loan.

“However, as the circumstances of mortgagors change, their new incomes may place them in a higher or lower income band, lessening or increasing the need for an interest rate subsidy,” Mr. Holness said.