#Kingston, March 22, 2019 – Jamaica – Prime Minister, the Most Hon. Andrew Holness, says the National Housing Trust (NHT) will be introducing an intergenerational mortgage programme in the upcoming fiscal year.
This
initiative, he said, will allow flexibility in
how a family member can support a beneficiary in acquiring an NHT property.
“The aim is for a younger sibling or
child to agree to carry the mortgage obligation, subject to affordability, when
the older mortgagor retires or dies,” Mr. Holness said.
The
Prime Minister was making his contribution to the 2019/20 Budget Debate in the
House of Representatives on Tuesday (March 19).
He explained that under this
programme, the beneficiary’s loan will be scheduled to retirement over a 60-year
period, and will include the portion of the costs to be covered during the
period from the date of the loan to retirement.
“For example, if the beneficiary has 20 years to retirement, then it
would be a 20/60 or 1/3 ratio of the cost of the solution, which will be factored
into the required payment,” he noted.
The
Prime Minister said the beneficiary will be required to present an “heir” to the NHT – a
younger sibling or child – who will consent to repaying the outstanding amounts
on the cost of the asset, which will be adjusted to current values.
“That sibling will be allowed to take over the asset if they agree to various
terms, including allowing the beneficiary to occupy the premises for (an agreed
period) of time. The cycle may be repeated for a second heir to take over the
housing solution,” he indicated.
The
Prime Minister said this initiative is
meant to support capital accumulation “in really poor families, because now you
can pool your wealth, which is not always possible. This is a practical way of
ensuring that we give everybody a shot at homeownership”.
A maximum of 10 per cent of NHT’s
constructed solutions will be accessible under this programme in the initial
stages and selection will be based on the age of the applicant, the number of
years the applicant has contributed to the NHT and the assessed ability of the
heir to carry the mortgage when the obligation passes.
Contact: Alecia Smith
Release: JIS