FirstCaribbean makes special mortgage offer to customers
Published:Wednesday | July 6, 2011 | 12:00 AM
FirstCaribbean International Building Society has announced a reduction in its mortgage interest rates to a minimum 10.4 per cent effective July 1, joining with other lenders who have made similar moves this year.
The 10.4 per cent offer is confined to one segment and is structured as a variable rate loan.
For non-account holders, the building society has reduced its rate by 2.15 per cent to 11.85 per cent.
The smallest building society with total assets of J$9.4 billion as at March 31, FirstCaribbean Building Society is a minnow in the mortgage-loan market.
It holds a portfolio of J$8.19 billion, or just about 10 per cent of the J$82.78 billion in mortgages held by sector regulated by the Bank of Jamaica.
Following the cut in reduction in stamp duty charges by the government from 0.7 per cent to a nominal J$100, and the offer from the Jamaica Mortgage Bank of low-cost funds for mortgage lenders, building societies, banks, finance companies and credit unions have rolled out cheaper rates for all categories of buyers in the property market.
In a release on Tuesday, FirstCaribbean said that first-time mortgage applicants with an existing relationship with the bank or building society will be sold mortgages at 10.4 per cent fixed for three years, and a variable thereafter.
The extent of the cut for this segment was not disclosed.
"To benefit from this reduction in rates, all payments should be up to date," the bank said.