Home ownership made easier for council employees

The high closing cost has been the main stumbling block to home ownership.

The partnership between HF and LAPTRUST will enable employees to use their pension contribution to cover the 10 per cent contribution together with the closing cost.

This means that LAPTRUST members will have ability to obtain their desired houses without forking out a penny.

For HF, the property will be the primary security with the pension contribution being secondary security.

The implication is that in the event of defaulting, the mortgage provider may repossess the property and sell it to recover its financing.

The pension contribution is unlikely to be touched unless the realised sale proceeds will not clear off any outstanding arrears.

LAPTRUST managing trustee Hosea Kili said the organisation had partnered with Housing Finance to spearhead the development of tailor-made mortgage finance products and property solutions for members and stakeholders.