Edmond Campbell, News Coordinator

A change in the National Housing Trust's (NHT) housing benefits policy will now see the organisation awarding points for its scheme selection system in favour of lower income contributors.

At the same time, the NHT has also reduced its interest rates on interim financed loans to a range of seven per cent to 12 per cent, geared primarily toward young professionals.

This means that, if the cost of a proposed housing solution is less than $5 million - but less than $10 million, interest rate will fall by one per cent from eight to seven per cent.

Where the housing solution is greater than $5 million, but less than $10 million, the rate of interest applied would be nine per cent, a reduction of three per cent from the old rate of 12 per cent.

However, if the house costs more than $10 million, the interest rate remains at 12 per cent.

This amendment in the NHT's housing benefit policy, was approved by Cabinet, on Monday.

Two interim finance loans

Prior to this change in policy, the NHT operated two interim finance loans, the first for units costing less than $5 million, which attracted an eight per cent interest rate and secondly, for units costing more than $5 million with interest rate of 12 per cent.

In terms of the NHT's scheme selection process, it has been agreed that the points system be adjusted fo with the approved change in interest rates and income bands.

This means that contributors earning between $3,200 and $7,500 per week will pay an interest rate of two per cent and can accumulate a maximum 110 points.

Income earners of between $7,501 and $10,000 per week will pay four per cent interest and can amass a total of 90 points. Those earning between $10,000 and $20,000 per week will pay five per cent interest, but can only build up a total of 80 points.

Contributors earning more than $20,000 per week pay interest of six per cent and can collect a total of 70 points.

In April, Cabinet also approved changes to the loan limits and interest rates. Those changes took effect on July 1.

The board and management of the NHT recommended changes to the NHT's Housing benefits policy in an effort to boost construction activities in the local housing sector and improve the affordability of housing solutions for contributors.

edmond.campbell@gleanerjm.com