The government is moving to implement a system where home loans are bought and sold by investors.
This is referred to as secondary mortgage. Prime Minister, Andrew Holness, made the disclosure today.
Mr. Holness concedes there’re risks with a secondary mortgage market.
In the meantime, the Prime Minister says the government is exploring a home loan where elders can defer payment until they die or sell their properties.
This is referred to as reverse mortgage.
Mr. Holness says real estate value is deteriorating in communities where owners are faced with the heavy financial burden of maintaining their properties.
Mr. Holness was speaking at the Jamaica Realtors Association’s Real Estate Symposium at the Spanish Court Hotel in Kingston.
He says while it’ll take some time for reverse mortgages to become a feature in the housing sector, the secondary mortgage market is to be implemented soon.