Avellon Williams
PORT-AU-PRINCE — The Bank of the Republic of Haiti (BRH) has launched a mortgage lending program, called “10-10-20,” that aims to help Haitians build earthquake-resistant homes.
“The objective is to boost the real estate sector of the country,” Jean Armand Mondellis, a BRH executive who has worked on this project for two years.
Many residents have been struggling to raise the funding for the paraseismic – earthquake-resistant – homes that the government demands following the 2010 earthquake. In the past, BRH had introduced two incentive programs – Kay Pam and Real Estate Promotion and Development Program (PPDI) – to encourage residents to build homes. Neither program was successful.
“This one will make it easier for middle-class beneficiaries,” Jean Baden Dubois, the governor of BRH, said during the launch of the program on June 7.
“The down payment to make a loan is no longer between 25 to 30 percent,” he said.
“The timeline is more reasonable and BRH will work with the financial institutions to facilitate the feasibility of the program.”
BRH program manager Jean Armand Mondellis defines the middle class as anyone who has the income to meet the requirements for building a house up to $150,000. The requirements are not specified.
Haiti’s 10-10-20 home mortgage details
For the 10-10-20 program, the first 10 represents 10% of the property’s value, and a borrower must have that amount in their bank account to qualify. The next 10 refer to the 10% interest rate the borrower must pay. A borrower has 20 years to pay off the mortgage loan.
As part of the mortgage initiative, several banks have confirmed their participation, including the National Credit Bank, Unibank, Sogebank, Capital Bank, and Haitian Popular Bank.
A prospective homeowner must request a mortgage loan from a participating bank before they can obtain one. BRH will follow up with the lending bank if the request is approved. In addition to that, the loan recipient must pay 10% of the amount of the loan, BRH will put in 70%, and the lending bank will add the remaining 20%.
“The price for this accommodation should not exceed the sum of USD $150,000,” said Mondelis.
