BASSETERRE, St. Kitts, Jul. 23.2018 - THE government’s new Property Financing Programme geared towards public servants has seen significant interest from persons seeking finance.
The programme, which is a partnership between the government and Development Bank, was launched in June this year and sought to assist government employees with financing to construct houses or make renovations to their homes.
The Team Unity government allocated $15 million in the first instance towards the programme, and the initiative has a scope of reaching a maximum $45 million in various stages.
While addressing reporters at his July press conference at Government Headquarters, Prime Minister, Dr. Timothy Harris disclosed that the bank confirmed that it has received 97 applications to date.
According to the prime minister, the bank noted that the applications are at various stages of processing, and the purposes to which the financial institution has seen interest includes, loans for home improvement, fencing of properties, new home construction and purchasing of land.
“So far, applicants have sought to borrow amounts of from as low as $8,000 to as high as $750,000. The majority of applications, however, are well within the $300,000 range.”
When the programme was launched, the government capped the limit at EC$300,000, but Dr. Harris reminded that exceptions will be made for higher amounts.
“Recall also that we would have said that where the application exceeds that amount, the quantum above that cap, that threshold will go at the bank determine rate,” said Harris.
Successful applicants will have a five percent repayment interest if they borrow within the $300,000 limit, while the official rate of the bank will apply for persons borrowing over the set amount.
Dr. Harris emphasized that they are encouraged by the positive response from government employees.
According to the prime minister, the programme is the most affordable mortgage scheme in St. Kitts and Nevis.
First time homeowners will not only benefit from the low mortgage payment but also from concessions of Import Duty and Customs Service Charge on materials.
