JN introduces 'storm' loan
Published:Sunday | August 22, 2010 | 12:00 AM
Jamaica National Building Society (JNBS) has rolled out a new loan for property owners who want to storm-proof their homes.
There is no cap on the amount that can be borrowed, JN said, neither is a home valuation required.
Still, the mortgage lender has established the parameters on the loan size that will restrict disbursements to 75 per cent of the market value of the premises being upgraded.
The loan will be priced at 14.49 per cent for a maximum of 30 years.
A repayment on $1 million at 14.49 per cent for 10 years would be approximately $15,823 monthly, including both principal and interest.
Sales Manager Judy Benjamin said the new product falls within the category of home- improvement loans and will be made available to members and non-members once there is proof that the improvement being done will assist in preparing for a hurricane.
Documentary requirements
It takes approximately six weeks to process the loan, Benjamin stated.
Included in the documentary requirements are proof of ownership of the property, proof of income, identification, and a detailed estimate of work to be done or item to be bought, including the labour cost.
There is an insurance component based on the replacement cost of the property, which is included in the monthly payment for peril insurance.
Disbursal of the loan will be linked with the extent of the work being done. It can be paid out in one instalment or in tranches, Benjamin said.
While the loan can be paid off over 30 years, Benjamin cautioned that it might not be prudent to borrow small sums for a long-term period.