NHT to cut interest rates

Prime Minister Andrew Holness yesterday announced in parliament a reduction of interest rates to new borrowers and existing mortgagors of the National Housing Trust (NHT).

Interest rates for new borrowers will be cut by one percentage point, while existing mortgagors get a 0.5 per cent rate cut.

The reduction in interest rate for existing mortgagors will benefit 100,000 persons.

Giving details on the benefits to NHT mortgagors, Holness said that the NHT would introduce measures to safeguard people from losing their homes while increasing their disposable income.

He said that the NHT has put in place special relief for mortgagors who have lost their jobs owing to the COVID-19 pandemic.

Effective immediately, mortgagors who are laid off can apply for a moratorium on loan payment for three months in the first instance.

Last month, 11,350 mortgage accounts valued at $18.3 million at the NHT were in arrears for 90 days and over.

“Effectively immediately, the NHT will provide an option to reschedule these delinquent loans. However, this option will only be made available if the Trust has not already entered into a commitment to dispose of the property,” Holness explained.

“Mortgagors are also encouraged to take advantage of this opportunity, which will be extended for six months, effective April 1, 2020. 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 thereof,” he said.

Holness said that the special interest rate currently offered to groups such as persons over 55, the disabled, and public sector workers, would continue.

“The interest rate discount for the disabled, effective April 1, 2020, will be extended to include the parents of disabled children,” Holness said.

There will also be housing benefits for persons over 65 who are voluntary contributors.