Jamaica’s Prime Minister Andrew Holness, in his 2025/2026 Budget Presentation, outlined significant adjustments to the National Housing Trust (NHT) aimed at increasing affordability and accessibility for Jamaican homebuyers.
The announcement comes amid growing concerns among Jamaicans, particularly young people, about the rising cost of homeownership and the challenges of entering the housing market.
NHT loan limit increases effective July 1, 2025
The NHT will be increasing individual loan limits from $7.5 million to $9 million. For two co-applicants, the limit will rise from $15 million to $17 million, while three co-applicants will now have access to $23 million, up from $21 million. Additionally, for units priced at $14 million or less, individuals will be able to borrow up to $12 million.
“Each time we increase the loan limit, we notice an increase in the price of houses. It is the most frustrating thing, and yes, it is a matter of economics. So, what we have done is to give a greater loan limit for houses that are at the affordable price point,” the Prime Minister explained.
Further, the wait time for home improvement loans will be reduced from 10 years to seven years, while the loan limit will be increased from $3.5 million to $5 million.
Private sector mortgage refunds
Effective July 1, private sector mortgage holders will have the option of either receiving a cash refund or applying their refund amount toward their existing mortgage obligations, provided their loan is free of arrears. This initiative, which has been available to public sector workers, will now be extended to private sector individuals and will be assessed on a year-by-year basis based on the NHT’s cash flow position.
“This is big. A lot of people look forward to their refunds. Now, private sector persons who have mortgages will have the same options as public sector workers,” Holness stated.
Smart energy loan expansion
To support energy-efficient home improvements, the NHT’s Smart Energy Loan will be increased from $1.5 million to $2.5 million, starting July 1, 2025. Additionally, in an effort to make the loan more accessible to lower-income contributors, the interest rate will now range from 0% to 5%, based on income bands, rather than the previous fixed rate of 5%.
Affordable NHT housing mandate
Holness also announced a new policy directive requiring the NHT to focus exclusively on developing homes priced around $14 million or less.
“We have given a policy directive to the NHT that all their resources should be at producing houses at this price point. The NHT will not be involved in any new development of houses above this price point,” he stated.
To further aid lower-income earners, starting July 1, 2025, NHT contributors earning less than $30,000 weekly will have their deposit requirement on open market loans reduced to 2% if the housing solution they are acquiring is priced at or below $14 million.
In recent years, many Jamaicans, especially young professionals and first-time homebuyers, have expressed concern about escalating home prices that continue to outpace wage growth. There has been an outcry on social media that much of Jamaica’s real estate market is being priced for the diaspora or those living abroad, making it increasingly difficult for locals to afford homes. The increased loan limits and reduced deposit requirements are expected to provide a bit of ease for those looking to purchase a home in Jamaica.
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