KINGSTON, Jamaica — The National Housing Trust’s (NHT) decision to target middle-and low-income earners and persons with disabilities to benefit from reduced interest rates, is in keeping with the Government’s mandate to make home ownership possible for every Jamaican.

This was stated by Prime Minister, Andrew Holness, at the handover ceremony for houses in Majesty Gardens Phase 1A in St Andrew, on August 24.

Under the new policy, income is the sole determinant of the interest rate subsidy applied to mortgagors, Holness said.

The policy is aimed at ensuring equity and allocation of subsidies where it is most needed, that is, to the lowest income groups and the most vulnerable. The policy is intended for application to new loans.

Holness said the change in its application of additional interest rate subsidies is a fairer and more effective approach, even as the Trust continues to provide greater assistance to those contributors who need it the most.

“The subsidy is that if you fall within a certain category, your interest rates are reduced. If you are disabled, and you are in the category $30,000 to $40,000, you get a one per cent reduction in your interest rate, but remember, that category only pays two per cent. If you are in the $42,000 and over, you get a one per cent reduction, so you pay three per cent,” the Prime Minister said.

The NHT has been evaluating the manner in which it allocates subsidies. Under the prior approach, additional interest rate subsidies were applied to special groups. This resulted in persons who fell within those groups automatically attaining subsidies – whether or not they were needed in order to access or afford a loan.

Conversely, potential beneficiaries who had similar or lower incomes, when compared to people within those special groups could not benefit from these subsidies. Therefore, subsidies were not being effectively applied based on financial need.

This new approach will allow the NHT to focus its subsidy programme on the most vulnerable contributors, specifically, low-income earners of all ages and persons with disabilities. It also allows more resources to be directed to those in need.

“What we are going to do is to be more equitable and which is much more advantageous to the disabled community,” Holness emphasised.

Under the new policy, Special Grant for Persons with Disabilities (no cost to the beneficiary) has doubled to $300,000. In addition, a maximum of two NHT mortgagors with disabilities, residing in the same household (or caregiver of a person living with disabilities), can now access a grant of up to $600,000.

By doubling the grant, these individuals are more equipped to upgrade their home to meet their special needs. The advantage to the recipient is immediate, rather than over the term of a mortgage.

Further, for new beneficiaries who are disabled, the NHT has made provision for scheme units, so allocated, to be fitted with the requisite amenities to enable maximum functionality. This will be at no additional cost to the beneficiary and will be in place prior to occupancy.