Deferred Mortgage Arrangement
This facility is available to a contributor whose income cannot afford the full purchase price of a scheme house. Under this arrangement, the NHT will defer payment of up to 40% of the cost of the unit. This is how it works:
- The scheme applicant must be able to afford to repay at least 60% of the price of the scheme unit. So, if a one-bedroom unit in an NHT scheme costs $3.5 million, the applicant must be able to afford to repay a loan for 60% of its value or $2.1 million.
- The successful applicant will receive an equity loan from the NHT for the remaining portion.
- The successful applicant will be required to repay the equity portion by making scheduled payments. However, the applicant can also repay the equity loan by:
- Having an eligible co-applicant to refinance the loan
- Accessing additional financing
- A maximum of 10% of eligible scheme applicants will be allowed to access this benefit.
Effective date: This policy was enacted on July 1, 2010.