Tourism plan proposes mortgage subsidy of up to Afl. 300 a month

ORANJESTAD — Another major proposal in Aruba's Tourism 3.0 draft is the creation of an Afl. 25 million Housing and Mortgage Access Facility for 2027–2031, aimed at households that are close to qualifying for a mortgage but still fall short of a lender's final affordability requirements.

The facility has a planning target of approximately 1,000 mortgages. Of the Afl. 25 million, up to Afl. 18 million would finance direct mortgage subsidies, while up to Afl. 7 million would cover administration, mortgage readiness, monitoring, evaluation and limited risk protection.      

Eligible households could receive a maximum subsidy of Afl. 300 per month, up to Afl. 18,000 over five years. The target income range is approximately Afl. 3,500 to Afl. 5,000 gross per household per month.      

The measure is aimed at working households with stable income that can afford most of a responsible mortgage but remain excluded because of land costs, down-payment requirements, closing costs or a relatively small affordability gap.

The plan estimates that the Afl. 25 million facility could mobilize approximately Afl. 208.6 million to Afl. 216.5 million in housing investment. Banks would retain normal underwriting responsibility, while speculative purchases and vacation-rental properties would not qualify.      

The draft also links mortgage assistance to the release of land and additional housing supply, warning in effect that increasing purchasing power without creating more homes could push prices higher. Implementation is envisioned from 2027 but remains subject to final approval.