In order to make it easier for people to become owners of residential housing, the State Treasury will pay interest benefits, which are intended to be set against the interest costs of a mortgage.
People who pay interest on loans taken for residential housing for their own use are entitled to interest benefits.
Loans accruing entitlements to interest benefits may be for:
the purchase of residential housing,
the building of residential housing,
significant improvements to residential housing that have been granted by the Housing and Construction Authority (Housing Financing Fund),
temporary repayment difficulties concerning loans that were taken to pay off other mortgages,
buying a share in an open-market lease-purchase flat.
The factors affecting the level of interest benefits are: family circumstances, income, assets, liabilities and the lending costs of the individual who is the registered borrower.
Interest benefits are reduced or cancelled if the assets are above a certain limit.
Interest benefits are paid out quarterly.