New Pari Passu Agreement between the Banks and NHT, How does this affect the purchaser

The National Housing Trust (NHT) and several banks recently signed a new pari passu agreement. This agreement has been in the works for a while and is expected to have a significant impact on purchasers of NHT properties. Here's what you need to know.

What is a Pari Passu Agreement?

A pari passu agreement is a type of agreement that ensures that all parties involved in a transaction are treated equally. In this case, the agreement ensures that the banks and the NHT are treated equally when it comes to the repayment of loans.

How Does the New Agreement Affect Purchasers?

The new agreement is expected to have a positive impact on purchasers of NHT properties. This is because it will make it easier for the NHT to secure loans from banks. This, in turn, will make it easier for the NHT to build more homes and to offer more financing options to potential homeowners.

What Are the Benefits of the New Agreement?

There are several benefits of the new pari passu agreement. For starters, it will help to increase the supply of affordable housing in Jamaica. This is because it will make it easier for the NHT to secure loans from banks, which will allow them to build more homes.

Additionally, the new agreement will make it easier for potential homeowners to secure financing. This is because the NHT will have more financing options available to them, which will allow them to offer more competitive rates to potential homeowners.

What Are the Potential Drawbacks?

While there are many potential benefits of the new agreement, there are also some potential drawbacks. For example, some people are concerned that the increased supply of affordable housing could lead to a decrease in property values in some areas.

Additionally, some people are concerned that the increased competition for financing could lead to higher interest rates for potential homeowners.

Conclusion

Overall, the new pari passu agreement between the NHT and several banks is expected to have a positive impact on purchasers of NHT properties. While there are some potential drawbacks, the benefits of the agreement far outweigh the potential risks.