The Friends of Democracy (FOD) has promised a far-reaching transformation of the housing system, unveiling proposals centred on rent-to-own schemes, 100 per cent mortgages and reverse mortgage options during its manifesto launch at Bush Hall, St Michael, on Sunday.
FOD candidate for St Lucy, Shetland Davis, told supporters the party is proposing a four-pronged approach aimed at expanding home ownership, easing financial pressure on seniors, and tackling what he described as a growing housing crisis.
“We propose to you a four-pronged solution to the housing crisis,” Davis said. “An aggressive, genuine rent-to-own policy and agency who will mandate that policy and ensure 100 per cent mortgages and will make sure they will be granted with reasonable market-driven interest rates; quality, low-cost housing; single standalone units and terrace units; and finally, the implementation of reverse mortgages, particularly for persons over the age of 60.”
Reverse mortgages would allow older homeowners to access equity in their homes without being forced to sell or move.
He said: “A reverse mortgage is a financial arrangement where homeowners aged 60 and over can access part of the equity in their homes without having to sell or vacate the property. Instead of making mortgage payments, the homeowner receives payments from a lender and payment is only required when the home is sold or the owner passes away.”
The policy is aimed at improving retirement security and reducing financial strain on families, said Davis.
“This policy is about preserving dignity and retirement, giving our seniors the freedom to access wealth they’ve built over time and easing financial burden on the younger family members who may otherwise carry the full responsibility for their elders.”
He added that an FOD government would ensure strong oversight of any reverse mortgage programme.
“We, the Friends of Democracy, will ensure strict regulatory oversight to ensure transparency, fairness, and protection against predatory lending. Collaboration with financial institutions and credit unions to create a safe, regulated reverse mortgage product that meets international best practices.”
FOD candidate for St James North, Steffanie Williams, focused on expanding access to home ownership for working-class and middle-income Barbadians, particularly through an aggressive rent-to-own programme.
“We are committed to breaking the cycle of generational renting and expanding home ownership for working class and middle income Barbadians,” Williams said. “Our aggressive, genuine rent-to-own policy will make it possible for thousands of citizens to secure a home, many for the first time in their lives.”
The party plans to offer 100 per cent mortgages to public and private sector workers earning between $2 500 and $5 000 per month, she said.
“Through this policy, we, the Friends of Democracy, will help give 100 per cent mortgages to public officers and private sector employees earning $2 500 to $5 000 monthly. These mortgages will be provided at reasonable market-driven interest rates with no deposit required, thus removing one of the largest barriers to entry for first-time buyers.”
Williams also announced plans to establish a new homeowner authority to manage the programme.
“A dedicated homeowner authority, our newly mandated agency will be established to superintend and manage the programme, ensuring transparency, efficiency and accountability.”
In addition to financing, the party is also prioritising the construction of affordable, durable housing, she said.
“We also want to promote dignity through home ownership, which empowers families and gives young professionals and working class citizens a genuine stake in the national economy.”
“Therefore we call for lower-cost, quality housing, the development of very low-cost, quality housing units built to last and designed for practical, comfortable living.”
The FOD also proposed a shared mandatory house replacement insurance scheme for homes built with state assistance.
“We propose the implementation of shared mandatory house replacement insurance on all houses built with the state’s assistance,” the manifesto said, noting that the policy would not apply to long-term rentals or properties already acquired through mortgages.
The proposal comes in response to what FOD described as the lack of an effective system to replace government-assisted homes lost to disasters such as fires.
A government-backed insurance company would be established, with premiums shared between the state and homeowners.