By: Paul Sarran
September 30, 2025
In Trinidad and Tobago, the dream of homeownership is tied to government-backed institutions such as the Housing Development Corporation (HDC) and the Trinidad and Tobago Mortgage Bank (TTMB). Through flagship initiatives like the 2% and 5% mortgage programmes, these agencies have helped low-and middle-income earners access affordable housing. On paper, their collaboration is designed to ensure security, accessibility, and stability for thousands of citizens.
Yet for many homeowners, this dream has soured. TTMB has been dragging struggling families or citizens before the High Court over arrears. While borrowers have obligations, one must ask: why is a state-backed institution turning to punitive measures instead of compassion especially when arrears often arise from wrongful termination, the Covid-19 pandemic, or other financial shocks beyond a homeowner’s control?
TTMB is supposed to be a partner in nation-building, not a collector of fees and penalties. Instead of prioritising dialogue, restructuring, and humane repayment plans, it has often allowed arrears to balloon. Escrow charges, judgment interest, mounting legal fees, and additional interest on the principal balance trap homeowners in a cycle of debt. What begins as temporary hardship ends in permanent financial ruin.
This contradicts the very spirit of subsidised housing. The 2% and 5% mortgages were designed to keep homes affordable for citizens who would never qualify for commercial loans. TTMB, as administrator of these government-funded programmes, should act as a facilitator, not a predator. If commercial banks can offer moratorium and hardship accommodations, why can’t TTMB funded by taxpayers through the Ministry of Finance do the same?
The Covid-19 pandemic devastated whole sectors of the economy. Thousands lost jobs, contracts, and income streams. Many households still struggle to recover. Penalising them now with legal action and foreclosure is not only harsh but shortsighted. At a minimum, TTMB should have offered rescheduling, extended moratorium, or temporary payment holidays rather than rushing to litigation.
Escalating to the courts has broader costs. It clogs the judicial system with cases that could be settled through mediation. Worse, repossessions destabilise families, weaken communities, and drive greater reliance on welfare. At the national level, aggressive collections erode trust in government housing initiatives, discouraging new applicants who fear that “affordable” housing is a trap rather than a lifeline.
The contrast with HDC’s model is striking. HDC offers direct ownership, rent-to-own schemes, and serviced lots with construction support under the Aided Self-Help Housing Programme. Government subsidies on land and infrastructure keep costs down. Technical support, pre-approved plans, and oversight ensure quality and accountability.
Combined with TTMB’s mortgages up to 100% financing, 30-year terms, and eligibility up to age 70 these policies are supposed to form a safety net. But when TTMB rigidly pursues litigation instead of flexibility, the system collapses. The good intentions of the Ministry of Finance, which funds both agencies, are undermined by a narrow, punitive approach that prioritises penalties over protection.
That is why Finance Minister Tancoo and the TTMB board must intervene. What homeowners need is not a courtroom showdown but a fair chance to recover. TTMB must adopt policies that emphasise payment restructuring, interest forgiveness in genuine hardship cases, and clear, transparent communication. Independent mediation where repayment terms are negotiated under neutral oversight would restore balance and fairness.
Housing is not just about brick and mortar. It is about dignity, stability, and national development. A home is where families grow, communities thrive, and futures are built. When TTMB treats struggling homeowners as defaulters to be punished rather than citizens to be supported, it betrays the social contract.
As a country, we must resist the trend of financial institutions valuing short-term collection over long-term social impact. The Affordable Housing Programme was never meant to funnel families into endless interest accrual and legal fees. It was meant to be a lifeline and that lifeline must be preserved.
TTMB should not be a hammer hovering over homeowners’ heads but a shield against life’s unpredictability. Job loss, pandemics, and economic downturns are realities no one can control. What institutions can control is whether they respond with empathy or exploitation.
The Minister of Finance and TTMB board must act now. Collection policies should be reviewed to ensure homeowners are first called in for restructuring before legal escalation. Fees and penalties must be capped to prevent runaway debts. Most importantly, the ethos of subsidised housing must be reaffirmed: to uplift, not oppress.
In the end, affordable housing cannot be built on broken families. TTMB must remember its role not just as a financier, but as a guardian of one of our most basic rights: the right to shelter. Protecting that right is not only sound economic policy but also a moral duty to citizens who trusted the system. If the Government is serious about equity, fairness, and opportunity, it must ensure that TTMB lives up to its mandate of building not breaking homes and lives.
(Author Paul Sarran has successfully completed a Bachelor’s Degree in Political Science at the University of the West Indies.)
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