Effective today (April 3, 2023) the National Housing Trust (NHT) marks the start of phase one of a new loan structure the government agency calls the External Financing Mortgage Programme (EFMP).

According to a release from the State agency, the new mortgage financing model will “optimize loan processing and accessibility to mortgage for their contributors.” The EFMP will replace the current Joint Finance Mortgage Programme (JFMP) on a phased basis.

In that regard, contributors will have the option to choose from several mortgage institutions that they can access their NHT loans. Credit union and banks are included in the line up.

Under phase one of the programme, the NHT highlighted that contributors who wish to access their NHT benefits from a financial institution that have not signed on to EFMP, will be able to receive referral letters under the JFMP up to April 30. Also, contributors applying for NHT scheme units, grants and special subsidies must apply for their loans at any NHT branch office.

In the meantime, phase two of the programme which has not yet been implemented will allow for contributors earning above $30,000 and wish to access loans to purchase on the open marke, will be required to access full loans from partnering financial institutions.

This new loan financing model comes after the Prime Minister announced increased benefits for NHT contributors during his 2023/2024 budget presentation in Parliament last month.

Effective July 1, the NHT’s loan limit for a single applicant, will move from $6.5 million to $7.5 million, an increase of 15 per cent. The Prime Minister had also indicated that the NHT will continue to provide 100 per cent financing for houses built by the Trust, subject to the availability of funding for such purposes.