Trinidad and Tobago's finance minister told bankers Tuesday the low household savings rate in the country could have a negative impact on her government's ambitious plan to for developed nation status by 2020Karen Nunez-Tesheira was speaking at the launch of Scotiabank’s 20-in-20 mortgage program, which provides for up to a 20 per cent cash back incentive for homeowners after they have completed the mortgage payments on their home.
She welcomed the incentive, noting that it will encourage more people to consider home ownership and save.
The minister said government is developing strategies to encourage more people to save while generating more reserves and resources for businesses to invest.
Scotiabank's Senior General Manager Earl Hill said the "exciting feature of the program is that it encourages customers to save whilst they borrow, and to save substantially”.
He explained that customers who take new mortgages up to December 31, 2009, can qualify to receive up 20 per cent of the principal at the end of the mortgage term. They also have the option to receive a 15 per cent cash back incentive if they complete mortgage payments on time within 15 years.
Tesheira said most people’s savings over their lifetime are contained in their home, and this program allows more people to see cash available to strengthen their savings base as they near retirement.
She said the program would also stimulate market activity as more people who are unsure about moving forward with a mortgage will take up the offer. This will contribute to the economic activity that will help pull the country.
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