KINGSTON, Jamaica – The Jamaica National Building Society (JNBS) has introduced new personalised mortgage products, which will allow existing mortgagors and new applicants to access a range of rates from 11.49 to as low at 9.8 percent.
“The single digit mortgage rate becomes inevitable, given the competition in the mortgage market,” said Leon Mitchell, Assistant General Manager Marketing & Promotions at JNBS. He pointed out that, “There is real need to stimulate the market.”
He said that JNBS in examining its portfolio, the state of the economy and people’s lifestyles determined that, these new rates would facilitate more people to secure a mortgage at this time, hence this new approach to its products, since July 1.
“We have sought to introduce more flexibility in our options for “first time buyers,” and the lower rates will be offered to applicants who have demonstrated a pattern of savings or the ability to save,” Mr. Mitchell declared, “For example, we want applicants to show that they are saving, with at least 10 percent of a combined gross salary at any institution.”
He stated that the servicing options for the single digit product will be standing orders or salary deductions, and other requirements that pertain to lifestyle. And, the Society plans to improve its turnaround time for approvals with credit decisions being made within 48 hours of submission for approval.
“In respect of existing mortgagors,” Mr. Mitchell explained that, “they have the option to review their current mortgage rate by coming in to have a conversation with us, so that we can determine how they can access rates from 11.49 to 9.8 percent.”
Last April, the Society conducted a round of rate reductions moving rates for new mortgages from 14.49 percent to 13.75 percent. And, on June 1, JN also reduced rates for existing mortgages, at 15 percent and above. Those rates declined up to one percent.
The Assistant General Manager said the Society recognises that home ownership is always important; and thought it prudent, at this time, to reduce its rates. “The most important purchase in life for anyone is a home,” he stated.
Meanwhile, he pointed out that the Society would also be extending its mortgage loan options to home owners, who are in the construction process and have difficulties completing their homes; as well as, to persons who want to “to go green” and enhance their buildings with solar power.
“When we look around, we note that there are many incomplete home construction projects; therefore, we are will provide mortgages for persons who have started building and need help in completing their construction, so that they can be safer and more confident in their homes” he said.
The JNBS Assistant General Manager is urging persons who plan to build; and those with title issues, to work with the National Land Agency and the Land Administration & Management Programme (LAMP) to assist in resolving challenges that they might have with land titles.
He said that during the series of JN members meetings to be held in August and September, the Society will highlight its mortgage rates to continue to educate persons about how to reduce their rates. Jamaica National recently conducted mortgage seminars for its membership in South Florida, USA.
