ERROR RG P4 268.1998 A story in yesterday's newspaper incorrectly stated that any revenue generated from the sale of leases on homes in Southside will be reinvested in the Bermuda Land Development Company's master development strategy. In addition, BLDC will fund the development of the houses through commercial borowings from local banks.

Bermuda Housing Corporation (BHC) and Government have teamed up to make it easier for Bermudians to own a piece of "the Rock''.

Housing Minister Wayne Furbert and BHC yesterday unveiled two major changes in mortgaging policies -- and encouraged the private sector to consider following suit.

In the first initiative, BHC eased its lending policies to allow 90 percent mortgages with a ten-percent down payment supported by the Corporation for first-time home buyers. This policy will cover 20-year mortgages of up to $350,000.

And Mr. Furbert noted that support would be available for residents who wanted to renovate vacant or derelict housing.

Residents wishing to purchase an existing dwelling from BHC can expect to pay no more than 50 percent of their income on mortgage payments.

Those who wish to purchase land with the intent of building a house on it should expect to pay no more than 25 percent of their income on mortgage.

The second initiative, the "Step-Up Mortgage Plan'', targets young Bermudians between the ages of 21 and 35.

The initiative is geared toward helping people who have recently started their careers and would benefit from initially lower mortgage payments.

The plan ensures lower payments when young residents begin their careers and graduates the level of monthly mortgage to more standard payments once young Bermudians advance in their careers.

Mr. Furbert said the plan "is about providing flexibility in the system so that our aim of home ownership at a young age is both possible and probable''.

And he encouraged residents to be "creative'' with their housing ideas, stating: "The necessary support is available, but you must pick up the phone or take a walk down to the Housing Corporation office.'' He stated: "These are real initiatives that will help Bermudians right now -- they are practical, they are properly budgeted for. They are the investment and support that Bermudians need to plan for the future.'' The plan is applicable to Government property through the BHC and the Bermuda Land Development Corporation and includes the houses being made available at Southside.

Shadow Housing Minister Stanley Morton said he was pleased with the initiative, but not with the timing.

"The concept is good, any initiative that will assist the people is good. But it irks me that this was done on the eve of an election,'' said Mr. Morton.

"What, were they bankrupt before? They are not sincere, this was done for purely political reasons,'' he added.

See BLDC defends prices, Page 2