NHT DELIVERING MORE

The National Housing Trust, NHT, is best known for its continuous efforts to add to the stock of housing in Jamaica, through the development of housing solutions for its contributors, as well as working with developers under various arrangements to increase available housing. This perception is understandable, as the organisation is responsible for having built hundreds of schemes island-wide and partnering in the construction of many more. While this is a part of the organisation’s core mandate, the NHT does not simply build houses, it also ensures that contributors are able to access a loan at below market interest rates to either purchase units or land the NHT has developed or on the open market. The Trust’s efforts to build houses while offering more financing options for contributors have creditably improved the opportunities for homeownership for Jamaicans especially amongst the lowest earning contributors.

More Improved Services

The current environment presents an opportunity for the NHT to make timely upgrades to key customer services with a greater integration of technology. Over the next few months, customers should expect upgrades to NHT’s Online platform to offer more personalised services, faster processing times and an overall better customer experience.

For example, customers will be able to request NHT eligibility letters via the NHT Online portal. In addition, customers will be able to indicate their mortgage institution of choice to have their NHT loan processed.

More Housing Solutions

The last eight years has seen a more deliberate push from the NHT to increase housing supply. In 2021, the NHT completed a housing programme which saw approximately 23,000 starts over a five-year period. The Government of Jamaica’s current programme targets 70,000 new housing starts. Of this figure, the NHT is charged with contributing approximately 43,000. By any definition, this is no small feat.

To this end, the NHT is collaborating with developers and building partners under the Guaranteed Purchase Programme (GPP) and the Developer’s Programme; two vehicles the NHT is using on the road to increasing its housing output. Through these programmes, the NHT is able to leverage the efficiencies within the private sector to deliver more housing projects at lower costs and within faster timeframes.

The partnerships have energised residential housing development by bringing more players into the affordable end of the housing market, especially those who may have either land or other means to build projects on a reasonable scale. In addition, contributors access these units using the NHT’s 100% financing facility for scheme purchases (up to a maximum of $15M).

More Financing Options

On the matter of housing financing, the NHT has been the market leader in low interest rates with loans ranging between zero and four per cent. The below market interest rates coupled with other NHT value propositions such as intergenerational and deferred mortgage options, subsidies and grants, continue to bridge the affordability gap for Jamaicans. In fact, the majority of NHT contributors (66%) qualify for an NHT loan at zero per cent. Suffice to say, the mortgage financing arrangements from the NHT are the best they have ever been. The challenge the NHT now has, is further increasing the supply of housing that will allow contributors to access loans on these attractive terms.

Increasing the supply of housing means the NHT has to channel more of its resources into the housing delivery programme. In FY 2021/2022, the NHT spent $46.7 billion on housing and a further $42.5 billion is projected to be spent by the end of FY2022/2023. An improved housing delivery programme, therefore, means the NHT will need to invest even more of its resources in housing construction.

Having given consideration to this need, the organisation has been analysing the manner in which it finances loans especially those for purchases on the open market. Consequently, the NHT will be implementing a new External Financing Mortgage Programme (EFMP) in April 2023. This replaces the Joint Finance Mortgage Programme (JFMP). Under the new arrangement, the NHT will partner with mortgage lending institutions to fund loan disbursements to NHT contributors. The disbursement includes NHT loans of up to $6.5 million ($7.5/8.5 million effective July 1, 2023) per beneficiary, which will be fully financed by the partner. The NHT will then pay directly to the mortgage partner the difference between the interest rate charged under the EFMP (the programme rate) and the applicable interest rate charged by the NHT.

More Benefits to Mortgagors

The new financing model allows NHT mortgagors to process their NHT loan from an expanded pool of partner mortgage institutions of their choice, including commercial banks and credit unions. This move opens up the mortgage market, giving customers more options for accessing their NHT loan when buying a house or land on the open market. Of note is that the mortgagor will not be negatively impacted, as the interest payment on the NHT’s portion of the loan will be the same as if he/she were to access funds directly from the NHT.

All contributors who are in the NHT’s zero per cent income band, that is, they earn below $30,000 weekly can either access their NHT at any of our branch offices or from a financial partner. However, those contributors who are interested in scheme units, grants and special subsidies, must access their NHT loan at one of the NHT branch offices.

For those of our contributors who are outside the NHT’s zero per cent income band and intend to mix funds (part from the NHT, part from the partner institution) will continue to receive ALL loan benefits under NHT’s portion (interest rates and loan tenure), as if they had come directly to the NHT. Also, contributors who are interested in applying for loans that fall within the NHT’s loan limit, may choose to apply at any NHT branch office.

The EFMP positions the NHT to channel resources into developing more affordable housing solutions for contributors in a significant way. This represents the greatest need of the housing market at this time. The NHT’s commitment is unwavering as we have an even greater resolve to improve the housing delivery programme to meet the increasing demand by building more houses with emphasis on the affordable housing market.

The NHT understands that as these new products and improved user experience are implemented, some customers may have questions and concerns. We are therefore embarking on a communication programme to share more information about the changes ahead.

We remain committed to serving you and you can reach out to us via any of our branch offices or through our customer contact centre at +1 876-929-6500.

We are proud to have been Jamaica’s mortgage partner of choice for the last 46 years and are as always… the key to your home as we seek to deliver more housing solutions, more financing options and more partnerships.