PM defends shift in NHT interest rate subsidies Loop Jamaica
Black Immigrant Daily News
Prime Minister Andrew Holness has defended a new policy direction of the National Housing Trust (NHT), arguing that the move is aimed at ensuring a more equitable distribution of state resources.
The NHT last week announced that going forward, income will be the sole determinant of interest rate subsidies on loans from the trust.
Previously, the interest rate subsidies were applied based on a number of categorisations
However, the Opposition People’s National Party (PNP) has since condemned the Holness Administration for effectively discontinuing interest rate subsidies to certain categories of contributors to the trust.
“The Government and the prime minister must be reminded that the NHT is a trust that was established for the workers and, as such, policies must be designed to benefit and not disadvantage contributors,” said Senator Floyd Morris, Opposition Spokesman on Housing and Sustainable Living, in a statement.
In response to such criticisms on Friday, Holness contended that the new policy shift of the NHT will stand to benefit all Jamaicans, especially low income earners.
“The NHT must now focus on ensuring that we have some fairness, some equity in society when it comes on to houses, (so) that the $20 million and $25 million house mustn’t be the only thing we focus on,” he indicated.
“We must build those, but we must also now focus on building a $10 million, an $8 million and a $6 million housing solution, so that people who sell in the market, the domestic helper, the mechanic, your barber, the shopkeeper can also get a NHT benefit,” the prime minister argued.
The head office of the National Housing Trust (NHT) in New Kingston.
“So you notice what the Government has done, therefore. The Government is not just looking out for one set of people. The Government is ensuring that the benefit that it gives covers everyone in the society,” he declared.
Holness was addressing a ceremony in St Ann where six houses under the Government’s New Social Housing Programme (NSHP) were presented to needy families.
In a statement on its website on Friday, the NHT said: “Currently, interest rate subsidies are applied based on a number of catergorisations.
“Going forward, income will be the sole determinant of interest rate subsidies. This move will allow the organisation to better identify and channel more resources to our contributors who need the additional assistance,” it added.
Despite the policy shift in relation to interest rate subsidies, the NHT reminded that other subsidies remain accessible to citizens through its home grant, deferred, intergenerational mortgages or other facilities, to help contributors achieve their homeownership goals.
Contributors who earn below $30,000 per week, who represent a majority of NHT contributors, will continue to access their mortgages at zero per cent.
Those who earn between $30,001 and $42,000.99 will access mortgages at two per cent, while those who earn above $42,001 will have their mortgages fixed at four per cent.
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