NHT has bigger loans, lower rates & better options (May-13-2010) In this article, the Trust outlines the changes to the loan limits, and answers some of the questions contributors have been asking about the matter. Increased loan limits NHT contributors are now getting more to borrow from the Trust arising from the recent increase in NHT loan limits. The loan limit refers to the maximum amount the NHT will lend for its various loan programmes. The latest increase in loan limits took effect on May 1, and it’s among certain changes being introduced by the Trust to improve contributors’ access to affordable housing. Other changes include a reduction in interest rates, a waiver of the 5% deposit on housing solutions in NHT Schemes, and a deferred mortgage option for persons applying to buy NHT-financed Scheme units, but who can afford at least 60% of the price of the unit at the time of application. Improved benefits For Non-Homeowners:  Qualified NHT contributors, who do not own a home  and who  are applying to the Trust for a loan to help buy or build a house may now borrow up to $4.5 million, for this purpose. This is $1 million more than what was available before May 1 when the policy came into effect. And, when two persons join to take up an NHT mortgage to buy or build a house, they can now get up to $9 million to borrow under the new policy. All this is dependent on their ability to afford the full loan. Persons who can’t afford the maximum loan limit, because their incomes are not enough to meet the repayment requirements for the loan, will get only the amount they can afford. Contributors who had received NHT loans 15 or more years ago, but who are no longer home owners, also qualify to apply for $1.5 million (under the Fifteen Plus loan programme), to help them buy or build another house. For Homeowners: An individual contributor who owns a house which he had acquired without using NHT loan funds, and who qualifies to apply for an NHT loan, may now borrow up to $1.5 million. The previous limit was $1.2 million. When two persons apply for the loan, together they can get up to $3 million. The amount each contributor is able to borrow however will depend on the purpose for which the loan is intended, and his ability to repay the loan. Homeowners who had received an NHT loan to buy their house more than 15 years ago, and who still own the house, also qualify to apply for a  loan of $1.5 million under the Fifteen Plus loan programme to help repair, improve or expand the existing mortgaged property. This loan can also be used to install hurricane shutters and solar energy systems. New loan limits Compare the new with the old Beneficiary category Loan Type Previous loan limit  New loan limit   Non-Homeowners ·         Open Market   ·         Scheme Unit     ·         Build On Own Land   ·         NHT serviced lot   ·         House lot $3.5 million single applicant   $3.5 million single applicant     $7 million double applicant   $1.2 million single applicant   1.9 million double applicant    $4.5 million single applicant      $4.5 million single applicant        $9 million double applicants   $1.5 million single applicant   $3 million double applicants   Homeowners All applicable loan groups ·         $1.2 million single applicant   ·         $2.4 million double applicants   $1.5 million single applicant   $3 million double applicants   Questions and Answers about the New NHT Loan limits The following are among the questions contributors have been asking since the announcement of the new loan limits, along with the relevant answers. Q: If I had been processed for a loan at the old limit, can I get the extra money up to $4.5 million? A: Yes, provided that no funds have yet been disbursed on your behalf, and your income will allow you to repay the increased amount. Q: What happens if a mortgage has already been registered on the loan, can I now get the increased sum? A: Yes. You have the option to do one of the following: a) Apply for the difference between the old and new loan limit, and have the additional amount registered, or b) Discharge the mortgage and be processed for the new loan amount. In this case, you will be required to pay the discharge fees associated with the original mortgage. Q:  I am joining with my husband to apply for a loan. His income can afford the $4.5 million but mine can only afford $3 million. Can we still get $9 million to borrow together? A: Yes, when two persons apply for a combined loan to buy or build a house, and one person can afford more than his individual loan limit but his co-applicant cannot, the Trust will allow the person with the higher income/affordability to guarantee an additional amount not exceeding $2.5 million. So in the case of you and your husband, he can borrow up to $1.5 million more (making it $6 million) to “top up your portion”, so that together you can both get a total loan of $9 million. Q: Will current beneficiaries who wish to either expand or complete their units be allowed to access the additional amount up to the new loan limit? A: No.   Q: Will persons applying for loans under the Joint Finance Mortgage Programme benefit from the increased loan limit? A: Yes. For further questions you may have on the increased loan limits, visit our website at www.nht.gov.jm  or email:  feedback@nht.gov.jm.