To widen the pool of homeowners and make the process more affordable, the National Housing Trust (NHT) has introduced inter-generational mortgages.
On his Facebook page, Prime Minster of Jamaica, Andrew Holness, said “Intergenerational mortgages allow flexibility in how a family member can support the beneficiary in acquiring a property. The aim is for young siblings to agree to carry the mortgage obligation, subject to affordability when the older mortgagor retires or dies. This is another decisive action on all fronts by the Government to improve the quality of life for all Jamaicans.”
The NHT intergenerational mortgage offers a 60-year loan that allows contributors to extend the payment terms that would fall over to the next generation.
“Intergenerational mortgages allow flexibility in how a family member can support the beneficiary in acquiring a property. The aim is for young siblings to agree to carry the mortgage obligation, subject to affordability when the older mortgagor retires or dies.”Prime Minister of Jamaica, Andrew Holness
In the United Kingdom, according to www.themortgagebroker.co.uk, the intergenerational mortgage takes a different spin. The older homeowner, in the UK, will put up their own property as security on the purchase of another property for the younger family member. The scheme ensures that the person taking out the debt will be responsible for it, rather than the younger family member, who may otherwise struggle to get a home of their own.
Jamaica uses the NHT benefit as the financial basis and then allows the younger relative to assume the mortgage payment upon the demise of the NHT beneficiary.
Earlier this month, the NHT feted the first 52 residents of Westmoreland and their families, who were recipients of its housing solutions in the new Darliston Grove and Shrewsbury communities under the intergenerational scheme.
Speaking at the handing over ceremony, the Holness highlighted that these solutions were a testament to the Government’s resolve and unending commitment to deliver 23,000 housing starts under the NHT’s four-year housing programme up to 2021. He said the NHT had superseded its initial target of delivering 14,000 housing starts for the period 2016 to 2019, thereby increasing the inventory by 152 per cent and completions totaling 6,400 solutions over the same period.