There are no prizes for surmising that the National Housing Trust's (NHT) extension of its mortgage repayment period will be met with satisfaction, if not jubilation, by those who contribute, as is required by law, and hope to access the benefit they are entitled to.

Yesterday's Gleaner reported that the NHT has increased not only the maximum amortisation period of its loans, by 10 years to 40 years, but also the maximum age at which a borrower has to pay off his or her debt to 70.

This is up from the generally accepted retirement age of 65 years old.

This, it is hoped, will allow more persons to access a NHT benefit. However, there is more to the extensions than meets the eye, as they do more than simply allow borrowers more time and, hence, facilitate the obvious - a lower monthly repayment and a chance to get a mortgage both at a younger age (for those ambitious under 30s who desire a piece of real estate for themselves) as well as older (for those who are seeing the sands of time slip through their fingers).

What these increased limits also do is to allow the individual who desires an NHT mortgage (and it remains by far the cheapest option, even when used as part of a mix of funds to access a loan higher than the NHT's current maximum figures) to reschedule their lives.

maximising earnings

By this, we mean that under the old limits, someone approaching 35 would naturally be concerned - if not panicking - that after that age they could no longer be able to get an NHT loan for the maximum 30 years. However, at that age, chances are they would not be near to maximising their earning capacity, whether they are working in a corporate environment or running their own business.

By 40 years old, however, they would have been able not only to acquire more cash to deal with the up-front mortgage expenses (which can be crushing), but could also still look forward to a 30-year mortgage period - if required. And, chances are, they would be able to acquire a more upscale property, despite the inevitable rise in real estate prices, this holding out the promise of a higher resale value in their declining years if downsizing is required.

approaching retirement age

On the other end of the age scale, someone who is approaching retirement age and, most likely, in the most financially rewarding position they will ever occupy in an organisation or their own business well established, will have a vital extra five years to finish paying off their NHT loan. They can apply part of a lump-sum retirement package towards this, or invest that lump sum in a high-return instrument which would then go a long way towards defraying remaining mortgage expenses, while leaving the principal intact.

So we commend the NHT on this move, which we trust will go some way towards easing the distress of so many NHT contributors who have been paying in vain for years. After all, there is another 40-year NHT limit that simply must be increased. Close to 130,000 mortgages to date, since its inception in 1979, is not enough.

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