KINGSTON, Jamaica – Effective Monday, February 11, interest rates on new mortgages in Jamaica will be increased to 13.5 per cent for Members and 13.75 per cent for non-Members at Jamaica National Building Society (JNBS).
- Related Content: This may come as quite the shock, but seems to be the most effective strategy for now. The mortgages we pay needs to be constantly changed and updated to be as efficient as possible. This means that people higher up have to make the tough choices for us.
The decision was taken by the Society following an overall 2.5 per cent hike in interest rates on open market instruments by the Bank of Jamaica during the past four weeks. This has forced mortgage institutions to review their lending portfolios.
Earl Jarrett, General Manager of JNBS
Earl Jarrett, General Manager of JNBS has however indicated that although the BOJ increases will result in higher rates for new mortgagors, existing mortgagors will not be affected at this time.
“While we are aware that these changes automatically translate into an upward adjustment of interest rates on mortgages, we have taken a decision not to immediately increase the rates on existing loans,” he added, noting, “This decision has been extended to persons who have already received offer letters from the Society or whose loans have been accepted and approved.”
Mr. Jarrett indicated that the Society is carefully monitoring the developments in the market.
“If the central bank continues to employ increased interest rates as a means of mopping up liquidity, then financial institutions will be forced to continue adjusting their lending rates in order to remain competitive,” he added.
