Home ownership is on the rise, according to a newly released Central Bank report and financial lenders. <\/p>\n
New mortgage commitments have doubled, growing from $79.7 million in 2004 to $143.8 million in 2005, noted the first economic report released for the year.<\/p>\n
According to Rory Higgs, managing director of the Bahamas Mortgage Corporation, there has been a significant amount of real estate development in both the private and public sector to correspond with the increasing demand for homes.<\/p>\n
The Central Bank report lists the construction boom as a “real indicator” which suggests that economic growth in 2006 should remain firm.<\/p>\n
“There has been an aggressive move by the Ministry of Housing to produce more homes and there are also likewise a number of private developers that have been producing homes at a very fast pace over the past two years,” Mr. Higgs said in an interview with The Bahama Journal Wednesday. <\/p>\n
“The statistics that are being reported by the Central Bank are statistics that reflect a move to produce sufficient supply for the huge demand out there.”<\/p>\n
But that is not to say the demand is being adequately serviced. <\/p>\n
From his experience, Mr. Higgs said there are thousands of persons waiting for homes “and we can’t produce them quickly enough.”<\/p>\n
He believes the risk acceptance criteria at a number of commercial banks are not as rigorous as they once were.<\/p>\n
“I think they have been relaxed a bit,” Mr. Higgs said. <\/p>\n
“We, here at the mortgage corporation, tend to be a bit more liberal than the commercial banks, particularly in the area of providing homes to persons who are self-employed. It is usually difficult for persons who are self-employed to obtain loans, because the process of verifying income is very difficult.” <\/p>\n
Walter Wells, Senior Vice President of Mortgage and Commercial Lending at Commonwealth Bank, agreed that banks are generally making it easier today for customers to qualify for home loans.<\/p>\n
“People are qualifying for homes. There is greater emphasis on homeownership-I do believe that banks are catering more and more to that segment of their customer base who previously might not have qualified because they didn’t have a significant deposit they could place on a new home,” he said.<\/p>\n
“There is a very strong demand for Bahamians looking to upgrade existing homes or purchasing a first home. I guess a lot of people are tired of paying rent or may be newly married or whatever, but there is generally a very strong demand in the market for new mortgages at this point in time.”<\/p>\n
According to Mr. Wells, Commonwealth Bank is constantly seeking to attract mortgage policies. <\/p>\n
He said that in previous years Commonwealth Bank has had a very strong focus on consumer credit and in more recent years they have placed significant emphasis on mortgage lending. <\/p>\n
“We are trying to provide a complete service to our client base rather than focusing strictly on consumer credit or credit cards, we are also focusing on homeownership, debt consolidation, etc.,” he said.<\/p>\n
By: Tosheena Robinson-Blair, The Bahama Journal<\/small><\/p>\n","protected":false},"excerpt":{"rendered":"
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