Jamaica Mortgage Bank (JMB) is in discussions with lending institutions to secure $2 billion in loans to finance its investment programme.
The Mortgage Bank currently has more than $4 billion in applications in the pipeline, including proposals to build low and middle income houses.
Speaking in the Sectoral Debate on Tuesday, Dr. Morais Guy, Minister without Portfolio in the Ministry of Housing, said the Mortgage Bank projects commitments of up to $2 billion this fiscal year to finance 600 to 700 housing solutions.
He also disclosed that the Mortgage Bank has collected more than $260 million of its bad debt.
Growing the sector
Dr. Guy told the House that, in order for the housing market to stimulate economic growth, the construction sector must grow by more than 10 per cent annually.
He said the Ministry will continue to strengthen legislative and policy frameworks governing housing and mortgages, in order to spur the revitalisation of the market.
Dr. Guy cited amendments to the Mortgage Insurance Act last December to allow for the percentage of the appraised value of a property on which a mortgage is granted, to be increased from 90% to 97%.
Another initiative being pursued by the Mortgage Bank is a Home Deposit Financing Facility.
Under this programme, the Bank will make funds available to financial intermediaries for on-lending to their customers as a home deposit loan.
The maximum amount that will be given as a loan will not exceed 5 per cent of the sale price, which must not be over $15 million.
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