Two more local high street banks have joined the government’s mortgage guarantee programme to enable more Caymanians to access mortgages. Butterfield and First Caribbean International banks will each offer an additional $5 million sum for home loans to local people who can afford a mortgage but cannot find the 25% cash to put down with the bank. The deal with the two banks brings the total of retail banks supporting the initiative to six. Since its inception the Government Guaranteed Home Assisted Mortgage (GGHAM) programme has helped 269 people get their own homes.
Butterfield and FirstCaribbean International had previously committed $10 million each which has already been disbursed but the extra five million will help assist more families.
In existence since 2007, the GGHAM assists Caymanians who qualify for traditional commercial bank mortgages, but who are unable to accumulate the required five to twenty percent deposit. Government guarantees 35 percent of the total mortgage enabling clients to access a loan without having to find the usual down payment. The banks then grant mortgages based on both the guarantees and the client’s eligibility. Customers must remain in good standing with their banks to retain their guarantees.
In addition to Butterfield and FirstCaribbean, GGHAM currently has agreements with Cayman National; Fidelity Bank (Cayman) Ltd; Royal Bank of Canada and Scotiabank & Trust (Cayman) Ltd.
Mike Adam, the minister with responsibility for housing applauded the banks which have already approved some $47.5 million in loans to the 269 recipients. “These are impressive figures and we hope to see them expand even further as the programme continues to grow,” he said.
(source : Cayman News Service)
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