Kingston, Jamaica — 1 August 2023
The National Housing Trust has fully rolled out its External Financing Mortgage Programme, a structural change that routes higher-income contributors away from NHT branch offices and toward a network of ten commercial partner institutions, while preserving NHT-rate interest on their loans. The programme came into full effect on 1 August 2023, replacing the previous Joint Finance Mortgage Programme and expanding the number of institutions through which qualified contributors can access their NHT benefits.
The dividing line is income. Contributors earning more than $30,000.99 per week must now apply for their NHT mortgage through one of the ten EFMP partner institutions rather than directly at an NHT branch. Those earning $30,000.99 or less per week continue to apply at NHT offices as before. The distinction is designed to concentrate the NHT’s direct service capacity on lower-income contributors while leveraging commercial bank infrastructure to serve the higher-income tier.
Ten Institutions in the Programme
The ten partner institutions participating in the EFMP are: COK Sodality Credit Union, National Commercial Bank, Bank of Nova Scotia Jamaica, JMMB Bank Jamaica, JN Bank, Victoria Mutual Building Society, First Global Bank, CIBC Caribbean, Sagicor Bank Jamaica, and Sagicor Life. The breadth of this list — covering commercial banks, building societies, and credit unions — gives contributors a meaningful set of options when selecting where to process their loan application.
A critical feature of the EFMP is rate preservation. Contributors channelled through partner institutions still receive their NHT loan at the same low interest rate they would have received applying directly to the NHT. The commercial bank earns a margin from the NHT for originating and servicing the loan, but the contributor’s cost of borrowing is not affected. In Jamaica’s mortgage environment, where commercial bank rates for unsubsidised mortgages sit considerably above NHT rates, this preservation matters enormously for the borrower’s long-term repayment cost.
Early Results
In its first year of operation, the NHT made 2,228 referrals to partner institutions under the EFMP. Of those referrals, 463 loans were disbursed at a combined value of $4.2 billion. The conversion rate from referral to disbursement reflects the typical friction in any mortgage origination process — income verification, credit assessment, and title due diligence all take time and can result in attrition. The NHT has indicated the programme represents an improvement in its financing arrangements, citing both the expanded institutional reach and the ability to serve more contributors simultaneously.
“The EFMP is a sensible structural evolution for the NHT,” said Dean Jones, Managing Director of Jamaica Homes. “Higher-income contributors are better placed to navigate a commercial bank application process, and routing them through ten institutions frees NHT branch capacity for contributors who need more direct support. The rate preservation element is non-negotiable — without it, the programme would simply be shifting cost onto the borrower.”
What Contributors Should Know
Contributors affected by the EFMP income threshold — those earning above $30,000.99 per week — should confirm which of the ten partner institutions they are already banking with, as applying through an existing banking relationship typically simplifies the documentation and underwriting process. NHT will issue the contributor with a referral letter to present to the chosen partner institution. The partner institution then handles origination and disbursement.
The EFMP applies to NHT’s standard loan products for buying, building, and improving housing. Contributors uncertain whether they fall above or below the income threshold should check the NHT’s online contributor portal, where income records and contribution history are accessible.
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