Govt’s Mortgage Programme To Enter Phase 2
Starting on April 1st 2023, the Government will be transitioning into phase 2 of the Mortgage Guarantee Programme “where public officers with mortgages at other institutions will be eligible to transfer them over and participate in the programme,” Premier David Burt said, adding that they will also “be removing the age restriction so that any Bermudian applying for a new mortgage is eligible.”
Graphic via the Government:
In delivering the 2023 Budget, the Premier and Minister of Finance said, “In October of last year, the Government proudly launched its Mortgage Guarantee Programme, a pilot programme where the Government provides a partial guarantee in support of local mortgages with Bermuda Commercial Bank.
“The Government’s support reduces the risk to the Bank, and in return, the Bank is offering not only a reduced interest rate, starting at 5%, but also a reduced down payment requirement from the standard 20% to 10%.
“As we are currently in the first of three phases, where first-time home buyers under the age of 40 are eligible, we are encouraged to see that, to date, over 135 applications have been received with 12 applicants having been approved thus far. That is 12 young Bermudians, and counting, who are able to own their ‘piece of the rock’ who would not have been able to do so otherwise.
“With that said, I am pleased to announce that beginning 1 April, 2023 we will be transitioning into phase 2 of the programme where public officers with mortgages at other institutions will be eligible to transfer them over and participate in the programme. It should be noted that this does not apply to mortgages where the public officer owns multiple properties or does not reside in the home.
“Also, as part of Phase 2, we will be removing the age restriction so that any Bermudian applying for a new mortgage is eligible,” Premier Burt added.
More money for more votes. Politically savvy if economically unwise.