Did Prime Minister Andrew Holness just make it easier to buy a home in Jamaica?
The PM announced a bunch of changes to the National Housing Trust (NHT) during his budget speech that should make buying a home easier, but will it make a difference?
First of all, you can now borrow more from the NHT. If you’re applying by yourself, you can now borrow up to 9 million dollars, up from 7.5 million. And if the house is 14 million or less, the NHT could lend you up to 12 million dollars, but that would be on a case by case basis.
If you’re applying with one other person, you can borrow up to 17 million dollars, up from 15. Three co-applicants can now borrow 23 million dollars, up from 21 million.
If you’re building a home, the individual construction loan limit will be raised to 11 million dollars. For two co-applicants, it will be 17 million and for three applicants, 23 million.
Next, if you earn less than 30,000 dollars a week, you’ll only be required to put down a two percent deposit if the house is 14 million or less. Typically you would need to put down at least 5 percent.
Meanwhile, the Government has also decided to cap NHT homes at 14 million. Here’s why.
Remember a few years back the NHT came under fire because of the Ruthven Towers that had one bedrooms going for 28 and 29 million and two bedrooms for 35 and 38 million. No more of that! The PM has given the NHT a directive to only build homes at or around the 14 million dollar mark.
Also, if you’re a healthcare worker, the PM said they have started discussions with the University Hospital of the West Indies, and a rural hospital to build dedicated housing close by for workers.
So do you think these changes will make a difference in your ability to buy a house?
And that’s the bottom line.
Let’s get this money!