July 1, 1999
|
|
July 1, 1999 |
|
NHT lowers interest rates
EFFECTIVE TODAY, new beneficiaries of the National Housing Trust (NHT) will benefit from lower interest rates. The disclosure was made yesterday by NHT chairman, Kingsley Thomas, at a press briefing at the Terra Nova Hotel in Kingston. He said the move was in keeping with an earlier disclosure by Prime Minister P.J. Patterson, who announced during his Budget presentation that the rates would have been going down. As of today, persons earning under $1,500 per week will pay an interest rate of two per cent per annum. Those earning $1500 $4,500 weekly will pay 4 per cent per annum, while those earning $4,501 $9,000 weekly will pay eight per cent per annum. For those persons whose income is $9,000 or more weekly, the interest rate will be 12 per cent per annum. NHT mortgagors who up to June 30 were repaying loans at 14 per cent will also benefit from a lowering of their interest payments by two percentage points. Those who had received loans at two per cent to 12 per cent prior to today will continue repaying their loans at these rates. Mr. Thomas explained that more persons, including those in the low-income group, will now be able to afford the NHT's maximum loan amount of $800,000. "What this means in effect is that the NHT's basic studio unit is now affordable to single applicants in the low income group," Thomas said. But the concessions will be costly to the NHT. While the reduced rates will result in savings ranging from 37 per cent to 16 per cent for homeowners, the NHT will be losing revenue of $107 million. Meantime, there have been modifications to the Priority Index Entitlement (PIE) system, which will result in greater benefit to those in the low income group. With the modification, those at the lowest end of the salary scale are now entitled to 110 points from their income, as against the previous 100 points. However, the number of points a contributor can earn remains at 20 per year. For those persons who are specially challenged the NHT, as of today, will not require a five per cent service charge in order for them to access a loan. However, such persons must be certified by the Jamaica Council for the Disabled as being specially challenged. They will now only be required to pay legal and other cash fees associated with the mortgage. The NHT chairman also disclosed that a person who cannot afford to borrow the maximum amount at the time of application may subsequently access the additional amount, provided there is an increase in the individual's income. The additional sum must be accessed within three years of the initial disbursement and will be based on the loan limit at the time of the initial disbursement. For persons who receive serviced or house lot loans from the Trust and who wish to access construction funds to build, they must do so within seven years of obtaining the initial funds. And there have been some changes that will benefit married couples. If at the time of marriage one party was the sole owner of a residential unit and the other party did not own residential property, the party who is not the owner of residential property may access any NHT benefit except a scheme benefit. Mr Thomas also disclosed that beneficiaries of deceased contributors can now claim contributions refund due to the deceased estate up to a maximum of $50,000 or funeral expenses, whichever is less. |
|
 |