A new income band has been created by the National Housing Trust (NHT) to accommodate persons earning over $100,000 per week.

Prime Minister Andrew Holness made the announcement during his contribution to the Budget Debate on Thursday. He said, based on developments in the housing market, it had become necessary to adjust both loan limits and interest rates.

This, he said, is done periodically to improve affordability for all contributors.

Holness reminded that in 2019, the NHT loan ceiling was increased from $5.5 million to $6.5 million, an 18.2 per cent hike. At the same time, the interest rates for all mortgagors were reduced and the income bands realigned.

“In keeping with the policy position that subsidies should be applied where they are most needed, a new interest rate band will be introduced effective the 1st of July, 2023 for persons earning over $100,000 per week at a five per cent interest rate,” he said Thursday.

All other rates remain the same, with persons earning minimum wage and up to $30,000 weekly paying zero per cent interest.

For persons earning between $30,000 and $42,000 per week, it remains at two per cent and for those earning between $42,000 and $100,000 per week the interest rate is still four per cent.

Holness pointed out that those who will be paying five per cent interest account for less than eight per cent of all NHT contributors while those in the zero per cent interest rate category make up 66 per cent of all those eligible for a mortgage.