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Housing Act ammendment reduces down payment required for govt guaranteed mortgages

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Housing Act ammendment reduces down payment required for govt guaranteed mortgages - Bahamas - Loan - Mortgage

The Free National Movement’s commitment to facilitate the improvement of housing conditions and to increase Bahamian ownership is a promise this government is moving forward for the benefit of our people.

Manifesto ‘07 clearly anounces this government’s pledge to:
(1) Construct 3,000 affordable homes by providing either fully serviced lots and/or newly constructed houses;
(2) Reduce the down payment required for government guaranteed home mortgages to 5% of total cost inclusive of utility connection and other fees and charges;
(3) Create additional residential sub-divisions in New Providence and the Family Islands;
(4) Cause the reduction in the cost of utility connections for first time homeowners;
(5) Require that all new construction comply with the town planning act, the Bahamas building code and the regulations governing building; and
(6) Ensure proper drainage, waste disposal, electricity and potable water supply are in place prior to the construction of houses or the sale of lots in new subdivisions, among others.
Madam President;
These amendments to the Housing Act chapter 199, will alleviate unnecessary delays, provide comfort and assistance to potential homeowners and, indeed better the coordination of work between the Ministry and the Department of Housing. It will quicken the processing of mortgages by the Bahamas Mortgage Corporation and other approved lenders as well as to provide quality customer service to the public.

The Housing Commission:
Until now the government guarantee was approved at call meetings of the Housing Commissions in New Providence and Grand Bahama. Applications are reviewed and processed by the commission. This process takes a lot of time and consequently, increases the amount of time a potential homeowner has to wait for his or her mortgage to be approved.
In this amendment we are removing this delay by abolishing the Housing Commission.
This will result in the process of loan guarantee approvals being processed in a timely manner.
The loan ceiling:
In the existing legislation the ceiling for insurable loans is presently $100,000.00.


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