As part of the Government’s stimulus

package to minimise the effects of the novel coronavirus (COVID-19) on the

economy, the National Housing Trust (NHT) has reduced interest rates on all new

loans by one per cent, and on all existing loans by 0.5 per cent, effective

April 1, 2020.

This will benefit some 8,000 new mortgagors

annually, and some 100,000 existing mortgagors.

Prime Minister Andrew Holness made the

announcement during his contribution to the 2020/21 Budget Debate in the House

of Representatives, on Thursday (March 19).

In addition, the NHT has put in place

special relief for mortgagors who may lose their jobs as a result of COVID-19.

These measures are to safeguard persons from losing their homes while improving

their disposable income.

As a result, effective immediately,

mortgagors who are laid off can apply for a moratorium on all loan payments of

three months in the first instance.

“In February 2020, 11,350 mortgage accounts

valued at $18.3 billion were in arrears for 90 days and over. Based on the

NHT’s loan management procedures, recovery activities, including public

auction, were implemented,” the Prime Minister said.

“Effective immediately, the NHT will

provide an option to reschedule these delinquent loans. However, this option

will only be made available where the Trust has not already entered into a

commitment to dispose of the property,” he added.

Holness said mortgagors are, therefore,

encouraged to take advantage of this opportunity, which will be extended for

six months, effective April 1, 2020.

Also, during this period, the NHT will

consider each mortgage on a case-by-case basis, with the option to extend the

tenure of the loan, reduce the interest rate, or some combination.

In addition, mortgagors may also take

advantage of the Intergenerational Loan Facility in their rescheduling

arrangements.

“All mortgagors who may have difficulties

during this period but whose mortgages are not at the delinquency stage, are

being encouraged to make contact with the NHT. We stand ready to assist,” the

Prime Minister said.

Meanwhile, the interest rate discounts

currently offered to special groups, such as mortgagors aged 55 years and over,

the disabled, as well as public sector workers, will continue.

The interest rate discounts for the

disabled will also be extended to include the parents of disabled children,

effective April 1.

There will also be housing benefits for

persons over 65 years who are voluntary contributors.

Holness said currently, individuals over

the age of 65 years are not required to contribute to the Trust and are not

allowed to access housing benefits.

“The NHT Act, however, makes provision for

individuals who would not, ordinarily, be liable to pay contributions, to do so

voluntarily and thereby qualify for benefits,” he stated.

He noted that the NHT Act makes provision

for individuals or groups to be classified as voluntary contributors.

“Contributors aged 65 years and over, will

be designated as voluntary contributors and, therefore, be able to access

housing benefits with tenure extending up to age 70,” the Prime Minister

pointed out.

He also cited the Intergenerational

Mortgage Programme, which was implemented in financial year 2019/20 and was

geared at eligible applicants for NHT scheme solutions.

Holness informed the Lower House that the

first beneficiaries of the Programme received their solutions in the Darliston

and Shrewsbury Housing Schemes, in Westmoreland.

“Beginning April 1, 2020, the NHT will

extend this benefit for eligible applicants for other loan products, such as

open market purchases and construction loans. Funding under this Programme will

be capped at the prevailing loan limit,” he noted.