Eligible young adults will be able to access up to $2 million towards a house deposit under the National Housing Trust (NHT) Advance Deposit Loan, which takes effect on July 1.

Administrative manager in the NHT’s Customer Relations Management Division, Shara Luke-Cooper, said the facility enables contributors aged 35 years and under to access a portion of their approved NHT loan upfront to cover the deposit required to purchase a home.

“In local terms, we would say it is a drawdown. For example, for a single applicant, if it is that single applicant can afford $9 million, then what we’re doing is we’re giving you an advance…of up to $2 million that you can use to assist with deposit,” she said, while addressing a recent Jamaica Information Service (JIS) Think Tank.

She explained that the advance forms part of the applicant’s approved loan amount and is subject to the trust’s existing lending criteria, including income qualification, applicable interest rates and repayment terms.

She added that where the purchaser secures the balance of the financing directly through the NHT, the advance will be consolidated with the remaining loan. Where financing is obtained through one of the trust’s partner financial institutions, the partner will process the full mortgage, while the NHT recovers the advance through that arrangement.

The Advance Deposit Loan was developed in response to feedback from young contributors who qualify for financing but struggle to save the deposit for a house.

Meanwhile, assistant general manager for corporate communications and public affairs Dwayne Berbick said the Advance Deposit Loan was developed in response to feedback from young contributors who qualify for financing but struggle to save for a deposit.

“Young adults have indicated they have challenges with finding the deposit. They know they can get the financing through the NHT…but many times they go, ‘I’ve identified the property, but I don’t have that deposit’. So, this is our response, advancing the funds to facilitate making deposits,” he said.

The Advance Deposit Loan is among several measures introduced by the NHT to improve access to homeownership for young contributors and strengthen housing security across Jamaica.

— JIS News