Introduction

In a significant step toward addressing Bermuda’s housing challenges, Premier David Burt recently highlighted the success of the government’s Mortgage Guarantee Programme in the House of Assembly. Launched in October 2022, the initiative has already provided tangible relief to Bermudians, enabling homeownership for many who might have otherwise struggled to achieve it. With competitive interest rates, reduced down payments, and streamlined refinancing options, the programme is a testament to the Progressive Labour Party’s commitment to “Putting Bermudians First.”

Key Achievements of the Mortgage Guarantee Programme

The Mortgage Guarantee Programme was designed to make homeownership more accessible for Bermudians. Here are some of its standout features and recent accomplishments:

1. Support for First-Time Homebuyers:

   • The programme guarantees first-time mortgages partially for up to ten years.
   • Interest rates are as low as 5%, and down payments have been halved to just 10%, making homeownership more affordable.

2. Widespread Adoption:

   • As of now, 74 Bermudians have either closed their mortgages or received approvals under the scheme, with three additional individuals benefiting from refinancing opportunities.

3. Impeccable Payment Record:

   • Premier Burt emphasized that not a single participant in the programme has been delayed or late on their mortgage payments, underscoring the programme’s effectiveness.

Encouraging Competition in the Banking Sector

One of the programme’s broader goals is to foster competition among Bermuda’s banks, ultimately reducing borrowing costs for residents. The Government has taken several steps to achieve this:

• Eliminating Stamp Duty on Mortgage Transfers:

  • This move has reduced barriers for Bermudians seeking to refinance or transfer their mortgages to banks offering better rates.
  • Premier Burt noted a positive response from banks, with some actively campaigning to attract new mortgage clients.

• Empowering Consumers:

  • The Premier urged Bermudians carrying high mortgage rates to negotiate with their banks or consider switching to more competitive lenders. As a result, many residents have successfully secured lower rates.

A Call to Action for Bermudians

Premier Burt encouraged first-time homebuyers and those with existing mortgages to explore the benefits of the Mortgage Guarantee Programme. He advised residents to contact Bermuda’s commercial banks to determine how the programme could work for them. Additionally, he stressed the importance of consumers being informed about their options and taking proactive steps to secure better mortgage terms.

The Bigger Picture: A Fairer Bermuda

The success of the Mortgage Guarantee Programme aligns with the Progressive Labour Party’s broader mission to create a fairer Bermuda. By addressing housing affordability, fostering competition in the banking sector, and empowering Bermudians to make informed financial decisions, the Government is laying the groundwork for a more equitable and prosperous future.

Conclusion

The Mortgage Guarantee Programme is more than just a financial initiative; it’s a lifeline for Bermudians striving to achieve the dream of homeownership. With its innovative policies and focus on consumer empowerment, the programme is a shining example of the Government’s commitment to improving the lives of its people. As Premier Burt aptly stated, “This project is working.” For Bermudians, that means more opportunities to own their piece of the rock and greater financial stability for years to come.

For more details, you can refer to the original article published by The Royal Gazette.