KINGSTON, Jamaica (JIS) — The Government has increased the income band for persons accessing zero per cent loans from the National Housing Trust (NHT) from $7,500 to $12,000 per week.

“This means that all workers in Jamaica, who earn $12,000 per week and less will be able to access interest-free loans from the National Housing Trust,” Prime Minister Andrew Holness said.

He was making his contribution to the 2016/17 budget debate in the House of Representatives on May 24.

He explained that such individuals would be qualified to borrow up to approximately $4.89 million.

“Two contributors of similar income levels, below $12,000 per week, can now jointly afford a mortgage of $9.8 million,” Holness said.

The prime minister noted that the adjustments are needed at this time as devaluation and inflation have negatively impacted affordability levels.

In addition, contributors earning between $12,001 and $20,000 per week will now be eligible for a two per cent mortgage interest rate, down from four per cent; and persons earning between $20,001 and $30,000 weekly will be eligible for loans at four per cent, down from six per cent.

Contributors who earn above $30,000 weekly will continue to pay at the rate of six per cent. These adjustments will take effect for mortgages written after July 1, 2016.

The prevailing two per cent interest rate discount for the disabled and senior citizens, as well as the one per cent reduction for public sector workers will continue to apply. This new policy change of the Government will positively impact more than 70 per cent of prospective mortgagors significantly increasing the amounts that they can afford to borrow,” Holness said.