NHT loan ceiling being increased, interest rates lowered

National Housing Trust (NHT) contributors are set to able to borrow more from the agency as the Government is to increase the loan limit for individual borrowers to $9 million beginning July 1, up from the current $7.5 million.

This was announced this afternoon in Parliament by Prime Minister Dr Andrew Holness as he contributed to the Budget Debate.

The combined maximum loan limit for two co-applicants will move from $15 million to $17 million.

And for three co-applicants, it will be increased to $23 million, up from $21 million.

If an individual mortgagor is purchasing a unit priced at $14 million or less, the NHT will lend up to $12 million, subject to affordability.

For construction of houses by individual contributors, the loan limit will be increased to $11 million.

Holness has also announced that as of July 1 NHT contributors who earn less than $30,000 weekly will only require a 2 per cent deposit for homes being purchased on the open market, a reduction from the current 5 per cent, if the housing solution being acquired is priced at or below $14 million.

He has also announced reduced interest rates for persons earning $42,000 or less per week.

Meanwhile, effective July 1, the NHT’s Smart Energy Loan amount will be increased from the current $1.5 million to $2.5 million.

The interest rate will range from 0 to 5 per cent in line with income bands rather than a fixed 5 per cent.

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