Adams On Govt Mortgage Guarantee Programme
“With a 5% interest rate, families with a $600,000 mortgage save over $550 per month, while those with a $1 million mortgage save over $700,” Junior Minister of Finance Jache Adams said in the House of Assembly today [Nov 29].
In providing an update on the Government’s Mortgage Guarantee Programme, Mr Adams — who is the Junior Minister of Finance — said, “Since its launch, I am proud to report that 52 individuals and families have become first-time homeowners or have been pre-approved and are awaiting the opportunity that best suits their needs.
“These are real, hardworking Bermudians who once believed homeownership was out of reach but now have a place to call their own.
“The impact of this programme is profound. With a 5% interest rate, families with a $600,000 mortgage save over $550 per month, while those with a $1 million mortgage save over $700.
“We remain dedicated to prudently removing barriers and creating pathways to homeownership, reducing the financial burden for families, and ensuring that more Bermudians have the opportunity to own a home.”
The Junior Minister’s full statement follows below:
Mr. Speaker,
I rise this morning to update this Honourable House on the Government’s Mortgage Guarantee Programme, the latest developments in its expansion, and our broader efforts to make homeownership more affordable for Bermudians.
Mr. Speaker,
The Mortgage Guarantee Programme is a key initiative of this Government, designed to support Bermudians in achieving the dream of homeownership. Whether they are first-time buyers or existing homeowners seeking more favorable mortgage terms, this programme addresses the challenges many face in accessing affordable financing.
Since its launch, I am proud to report that 52 individuals and families have become first-time homeowners or have been pre-approved and are awaiting the opportunity that best suits their needs.
Mr. Speaker,
These are real, hardworking Bermudians who once believed homeownership was out of reach but now have a place to call their own.
The impact of this programme is profound. With a 5% interest rate, families with a $600,000 mortgage save over $550 per month, while those with a $1 million mortgage save over $700. These savings are more than numbers—they represent tangible relief for families, allowing them to invest in their futures, contribute to the economy, and over time build long-term wealth.
It is also worth noting that, to date, all mortgages under this programme are current and in good standing. This demonstrates that when we alleviate financial pressures, Bermudians are up to the task, can meet their obligations and build stability.
But, Mr. Speaker, our work does not stop there. Phase two of the programme has revealed specific challenges for public officers in what we refer to as Special Group Services, including police officers, firefighters, and prison officers. It has been brought to our attention that due to their earlier retirement age, these individuals often faced difficulties qualifying for the programme.
After listening to their concerns and holding discussions with Bermuda Commercial Bank [BCB], I am pleased to announce that, effective January 1, public officers in these groups may have their retirement age considered as 65, subject to the individual’s ability and willingness to work beyond their profession’s standard retirement age and the bank’s standard lending criteria. This change ensures that these critical workers—those who protect and serve our community—can access the same benefits as others, with the aim of making homeownership more attainable for them and their families.
Mr. Speaker,
Another priority of this Government has been to encourage greater competition in the local banking sector. Competition benefits customers, ensuring they have access to the best possible terms and rates. To this end, we have implemented and discussed measures to make transferring mortgages more affordable.
Last year, we amended legislation to eliminate Stamp Duty on mortgage transfers for amounts under $1 million. Building on that initiative, I, along with the Ministry of Finance, recently met with the heads of HSBC, BCB, Butterfield, and Clarien and am pleased to report that each of these banks have affirmed their willingness to include legal and closing costs within the loan when transferring a mortgage, subject to the respective bank’s approval.
This means Bermudians can transfer their mortgage to another bank without incurring any Stamp Duty and without paying out of pocket for legal and other associated costs.
Mr. Speaker,
I encourage all Bermudians to explore their options when it comes to their mortgage—shop around, compare rates, and negotiate with their current lender. One Bermudian recently shared with me how, after being offered a better rate elsewhere, their original bank chose to match the offer rather than lose their business. This is a powerful example of the benefits of competition and a reminder that being proactive can result in significant savings.
Mr. Speaker,
Homeownership is about more than financial security—it represents stability, a sense of belonging, and a place to build dreams. This Government understands that, and through the Mortgage Guarantee Programme and our efforts to enhance competition in banking, we are showing Bermudians that we are committed to their financial well-being.
We remain dedicated to prudently removing barriers and creating pathways to homeownership, reducing the financial burden for families, and ensuring that more Bermudians have the opportunity to own a home.
Mr. Speaker,
To those who have taken their first steps toward homeownership and those still seeking better mortgage rates, I say this: “Your Government is here to support you”. We are building a Bermuda where opportunities abound, where financial relief is achievable, and where homeownership is no longer a distant dream but a tangible reality.
Thank you, Mr. Speaker.
