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Public officers set to be able to take part in mortgage scheme

Mortgage applications

The second phase of a government-backed mortgage guarantee programme will start in April, the Premier said in Friday’s Budget.

David Burt, who is also the finance minister, said that Phase 2 of the Mortgage Guarantee Programme will allow public officers to transfer their mortgages from their bank to the Bermuda Commercial Bank.

The move does not include mortgages for more than one property or for homes where the officer does not live.

An age restriction, which only made first-time homeowners aged under 40 eligible, will also be removed.

The programme, which launched last October, involves the Government providing a partial guarantee for mortgages with the Bermuda Commercial Bank.

The BCB offers reduced interest rates as low as 5 per cent and a reduced down payment of 10 per cent, down from the standard 20 per cent, in exchange for reduced risk, thanks to government support.

The programme saw more than 90 first-time homeowners apply by last November.

Delivering the 2023-24 Budget, Mr Burt said there had now been more than 135 applications, with 12 approved.

Government guarantees will not be in place for the entirety of the mortgage and will not exceed ten years, although the length of support will differ depending on the mortgage.

The Government has also been in talks since November with the international business community to “establish possible terms to cover a portion of the exposed risk”.

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Published February 21, 2023 at 7:37 am (Updated February 21, 2023 at 8:24 am)

Public officers set to be able to take part in mortgage scheme

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