Real price of NHA houses

THE EDITOR: With reference to an article in your daily newspaper dated Thursday October 21, 2004, Section A; page 11; entitled “2,000 a month to buy $175,000 house” I wish to bring  the following information to your attention. When one applies for housing through the National Housing Authority, there are criteria which must be met and which determine the length and nature of the mortgage payment which is arrived at, in conjunction with the Trinidad and Tobago Mortgage Finance Company Limited. These include: the age of the applicant and ability to service the loan.

The NHA no longer offers mortgage financing and thus has no control over the setting of interest rates but the Government ensures a competitive interest rate of six percent. The cost of a two bedroom single unit at Tarouba is $175,000. The applicant is expected to pay a five percent down payment. The monthly payment for a 30-year mortgage with an interest rate of six percent is $968 and a 20-year mortgage at the same rate would be $1,157 per month. As such the information provided by Mr Glen Ali of Barrackpore and published in your newspaper is both inaccurate and misleading and we would appreciate your printing this response.

GERVON
ABRAHAM
Communications Specialist
National Housing Authority