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Mortgage Bank to give home deposit loans

Published:Tuesday | May 5, 2015 | 12:00 AM

PROSPECTIVE HOMEOWNERS are to benefit from a five per cent home deposit loan under a facility created by the Jamaica Mortgage Bank (JMB).

Dr Morais Guy, who has portfolio responsibility for housing, said in the Sectoral Debate last week that under the Home Deposit Financing Facility Programme, financial intermediaries would be able to access the funds for on-lending to their customers as a home deposit loan.

"The maximum amount that will be given as a loan will not exceed five per cent of the sale price of the property, and the property being acquired should not exceed $15 million," Guy said.

Up to press time yesterday, it could not be ascertained what interest rates would be charged on the loans.

The Government last year passed amendments to the Mortgage Insurance Act to allow for the percentage of the appraised value of a property on which a mortgage loan is granted to be increased from 90-97 per cent.

"The amendment is aimed at making mortgages more accessible to homeowners and bringing the dream of home ownership within the grasp of more Jamaicans," Guy said.

The JMB spent $1.4 billion on the construction of 667 units last fiscal year. Guy said the JMB is currently in discussions with other lending institutions for loans of approximately $2 billion to finance its investment programme as it currently has over $4 billion of applications in the pipeline, including proposals to build low- and middle-income houses.