As part of efforts to help make life easier for the citizenry, the Bank of the Republic of Haiti (BRH) has launched a mortgage loan program, dubbed “10-10-20,” that aims to help the majority of Haitians build new, earthquake-resistant homes.
Jean Armand Mondellis, a BRH executive who has worked on this project for two years, said “The objective is to boost the real estate sector of the country”.
Reports have it that since the 2010 earthquake, countless residents have struggled to raise the funds needed to build the paraseismic – earthquake resistant – homes the government requires. It was also noted that prior, BRH had started two incentive programs – Kay Pam and Real Estate Promotion and Development Program (PPDI) – for residents to build homes. However, they were unsuccessful.
During the launch of the program, the governor of BRH, Jean Baden Duboissaid “This one will make it easier for middle-class beneficiaries”.
He continued that “The down payment to make a loan is no longer between 25 to 30 percent. The timeline is more reasonable and BRH will work with the financial institutions to facilitate the feasibility of the program.”
According to Jean Armand Mondellis, a BRH program manager, the middle class is defined as anyone who has the income to meet the requirements for building a house of up to $150,000. He did not detail the requirements.
It was clarified that in the 10-10-20 program, the first 10 refers to 10% of the value of the property, which a borrower must have in their bank account to be eligible. The next 10 refers to the 10% interest rate that the borrower must pay. Twenty refers to the 20 years a borrower has to pay off the mortgage loan.
Reports have it that several banks have agreed to join the mortgage initiative at launch, including National Credit Bank, Unibank, Sogebank, Capital Bank and Haitian Popular Bank.
The facilitators clarified that to receive a loan, a potential homeowner must first request one from a participating bank. If the request is approved, BRH will follow up with the lending bank. The loan recipient must then pay 10% of the sum of the loan, BRH will put in 70% and the lending bank will add the remaining 20%.
Mondelis succinctly noted that “The price for this accommodation should not exceed the sum of USD $150,000”.
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