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Mortgage FAQs

What are the requirements for Tenanted/Residential Mortgage?

  1. Sales Agreement (duly completed)
  2. Photocopy of Certificate of Title
  3. Valuation Report which must done by a member of our panel. The report should show a picture of the property. A list of our Valuers is available on our website.
  4. Income Verification
  5. Two most recent pay slips
  6. If self-employed, Statement of Income Confirmation is required from a Chartered Accountant, Cash Flow Projection, Bank Statement, Business License or Registration Certificates
  7. Proof of age (Passport, Driver’s Licence, or Elector Registration Identification Card)
  8. Surveyor’s Report done by a Commissioned Land Surveyor
  9. Up-To-Date Property Tax Certificate
  10. Closing Cost of approximately 6% of the loan amount to be lodged to a JN savings account.
  11. Credit Report is required for persons residing overseas.
  12. Self-employed persons to provide additional documents as instructed by Loans Officer

What are the categories of Tenanted/Residential Mortgage?

Semi-Residential – where less than 50% of the property is deployed for commercial purposes. Applicants reside (owner-occupied) and operate their business at the same premises.
 
Farmstead – these rates apply to agricultural properties up to 25 acres with owner-occupied residence. Greater than 25 acres will be treated as commercial property (prevailing rate on commercial loan will therefore apply)

What does Tenanted/Residential mean?

When you decide to purchase a property from which you may earn an income, JN Bank provides the opportunity to access a loan with interest rates ranging from 10.5%.
 
Whether you are a saver or non-saver, JN Bank will offer  75% of purchase price or valuation, whichever is less.
 
The loan term is for 15 years and over this period a fixed amount is disbursed on a monthly basis based on your monthly expenses.

How many years will I get to repay this loan?

The loan term is for 5 years and over this period a fixed amount is disbursed on a monthly basis based on your monthly expenses.

How long will this loan take to be processed?

Processing of the loan usually takes approximately 6 weeks.

What are the requirements to obtain this loan?

You will need to provide the following:
 
  • Breakdown of monthly expenses
  • Certificate of Title
  • Valuation Report on Property done by a Valuer on JN panel
  • Income verification letter(s) from employer(s) and original and most recent pay slips for two (2) months’  salary·
  • Proof of age (passport or birth certificate)
  • TRN (for local applicants)
  • Commissioned Land Surveyor’s Identification Report
  • Up-to-date Property Tax Certificate· Closing Costs for the mortgage is to be lodged to a JN savings account – approximately 6% of loan amount

If I assign the policy to the mortgage, will I still need a guarantor?

Yes, you will need the guarantor. The life insurance policy only becomes applicable after death.
 

Can I assign my life insurance policy to the mortgage?

Yes, you can, if the coverage is sufficient to cover the mortgage loan.

Will I be able to apply for this loan alone?

We require that you apply along with a younger person, preferably the one who is slated to inherit the property,  This person will be the guarantor and will be responsible for making the monthly payment.

What is the interest rate for the mortgage?

The interest rate varies from 8.5% -13% calculated on the reducing balance.

 

How much money can I obtain using my title?

You can borrow up to 95% of the value of the property.

What are the benefits I can gain from applying for this mortgage?

It is a source of income. If your title is not free, we will refinance the mortgage with the other institution.

What is the level of financing for purchasing residential land only?

Applicants can access up to 75%  or 50% to purchase residential land. The higher percentage is offered where there is infrastructure and in the lower in the absence of infrastructure.

How will loan applications in excess of J$10,000,000 be handled?

The Branch Manager will apply the usual assessment and make recommendations to the Credit Committee. Sums exceeding 10 million will be reviewed by the Board.

Can Pre-Approval be denied?

Yes, if:
  • Information supplied is false
  • Value of the property is inadequate
  • The applicant’s financial circumstances change
  • There is serious breach of the restrictive covenant *

What will the Pre-Approval letter state?

  • All the names of those who qualify for the facility
  • The amount of the loan
  • Rate of interest, the term & monthly payment of principal and interest
  • Expiration date of the letter and the commitment fee

What happens if it expires before the applicant identifies a property?

On the expiration date, the applicant can apply for another 90 days. In cases of expiration over 180 days, applicants are required to re-submit their documents.

How long is the Pre-Approval Valid for?

The Pre-Approval letter will be valid for 90 days from the date of issue.

How long does it take to get approval for the Loan?

Once the applicant’s ability to re-pay the loan has been established, the Pre-Approval Offer and Certificate will be issued within 3-4 working days. Copies are then forwarded to the Mortgage Department. However, please remember that the approval process depends on proper completion of the loan application and will also take into consideration the availability of closing costs and all other relevant information and documentation.

What are the Conditions for Final Approval ?

  • A valid sales agreement
  • A property valuation
  • Availability of the title for the property
  • Sufficient funds to cover closing costs
  • Surveyor’s Identification Report
  • Property Tax Certificate

What Is The Pre-Approval Facility?

This offers prospective purchasers the security of obtaining a pre-approved mortgage offer before they identify a home. The Pre-Approval letter is a statement from JN Bank that the person(s) named have qualified for a mortgage not exceeding a specified amount. It is our commitment to provide mortgage financing for the applicant once they have selected a property. This commitment is given based on the applicant’s proven ability to repay the loan.

What if the quotation is obtained from a broker?

We would prefer not to have to deal directly with brokers, however, where a broker provides this quotation, the Bank will communicate with and pay premiums directly to the insurance company.

What if I decide to use another insurer instead of JN General Insurance?

If you decide to use another insurer instead of JNGI, you should obtain a quotation directly from your selected insurer. N.B. The only companies that can be used are the approved members of our panel of insurers. These are listed below:
 
  • British Caribbean Insurance Company
  • Insurance Company of the West Indies
  • Jamaica International Insurance Co.
  • Jamaica General Insurance Company
  • West Indies Alliance
  • Globe Insurance Company
  • General Accident Insurance Company
 
Once you’ve submitted the quotation (or on presentation of the quotation by existing mortgagors), JN Bank will disburse the loan, put the insurance in place and pay the current year’s premium to the insurance company. Over the years, the insurance premium will form a part of your monthly payment.  On each anniversary date thereafter, JN Bank will settle the insurance premiums with the insurance company.
 

How can I acquire Peril Insurance?

JN Bank has a panel of insurers consisting of several general insurance companies in the industry.
 
  • The applicant is given the option to select his/her preferred insurer.
  • If JN General Insurance is selected, then you will be required to fill out a questionnaire when you are applying for the loan.
  • Once the questionnaire is completed, JN Bank submits it to JNGI, who will put your peril insurance coverage in place.
  • The coverage will take effect on the date of the loan disbursement.

What is Policy Excess/Deductible?

This is the amount that you bear in the event of each and every loss as outlined below:
 
  • Fire, Lightning, Explosion No Excess
  • Flood, Windstorm, Hurricane, Earthquake  2% of Sum Insured
  • Impact, Burst Pipes, Theft  $500.00
  • All other perils Minimum – $1,000.00 Maximum – $25,000.00

What is “Average Clause”? How is Peril Insurance premium calculated?

Average Clause is a formula used to calculate the amount payable for a claim based on the insurance coverage relative to the replacement cost of the property.  If a property is insured for less than 85% of its replacement value, the insurance company will calculate the loss in proportion to the sum insured.  For example, if a property is insured for less than the replacement value and the premises are partially damaged, the insurance company will apply the following formula to determine the amount to be paid to the owner:
 
Sum Insured x Amount of Loss = Amount Recoverable Value
Replacement Value
 
Once the property is insured for less than its replacement value, the owner is responsible for the remaining portion of the risk.
 

How is Peril Insurance premium calculated?

Your Peril Insurance premium is a percentage of the REPLACEMENT COST, which itself is an estimate at current rates of the cost to replace the building, if it was to be totally destroyed today. This estimate is usually provided in the Valuation Report done by a professional valuator from the Bank’s panel of valuers. The percentage rate used to compute the premium is determined by the insurance carrier and may vary from carrier to carrier
 

How is the Sum Insured Determined?

This is based on the Replacement Value stated on the Valuation Report.

Is Peril Insurance a requirement when I’m taking out a mortgage?

Yes, it is a requirement. It is compulsory that all properties mortgaged to JN are insured against certain perils.  However, in instances where the value of the land is equal to or exceeds the amount of the loan, applicants/mortgagors are given the option not to insure and to note our interest on policies.

What items are included in the coverage?

Provided that the sum insured is adequate, the cover normally includes buildings, boundary walls (not exceeding 10% of value on building), awnings, water tanks and fixed carpets forming the floor finish.

What is Peril Insurance and what does it cover?

Peril Insurance is an insurance against loss resulting from damage to property that is used as security to obtain a mortgage. It covers natural disasters (hurricane, flood, earthquake), fire and, in some cases, vandalism.

How will settlement be disbursed?

Settlement will be disbursed in the form of cheques or direct lodgements to JN Bank's Savings accounts.  It should be noted that a Discharge Form must be executed (by all parties or named Agent) before settlement is made. In addition, settlements over $500,000 will be disbursed in tranches.

When should I expect an inspection after submitting my Claim?

Claimants should expect to be contracted by an Assessor within three (3) weeks, on submission of ALL claim documents

Do I have to wait until the Claim is processed before my property can be repaired?

No, you do not have to wait.  If your property is extensively damaged, such as a damaged roof, it is best that you make the repairs while your claim is being processed.  However, the following should be noted:
 
  • Steps must be taken to protect self and property
  • Temporary repairs can be undertaken to protect property and to prevent further loss
  • Photographs are to be taken of damage before repairs
  • Bills/receipts relating to temporary repairs are to be kept for submission
  • Nearest police station to be indicated on form

I reside abroad, how do I claim?

Where the applicant(s) resides abroad and an Agent or family member oversees the business, the relevant Power of Attorney or notarized letter of authority must be obtained from the outset (i.e., at the time of submission), and not when the claim is being finalized.

What is the purpose of the closing cost?

Transfer cost, stamp duty, registration fees, application fee for second time home owners, JN Attorney’s fees and all other miscellaneous expenses.

What other additional costs do I need to bear in mind before accessing a mortgage?

As the purchaser, you will be required to pay to the vendor half the cost of the following fees:
 
  • Stamp duty
  • Registration
  • Sales Agreement – the vendor’s lawyer will determine the cost for sales agreement.
  • Valuator’s Fee
  • Surveyor’s Fee

What does my monthly mortgage payment include?

Your Monthly Mortgage payment includes:
  • Peril Insurance
  • Estimated Upkeep
  • Estimated Life Insurance (this is insurance for the mortgage)
  • Total Principal & Interest Repayment
  • NHT repayment (if applicable)

I am a first time homeowner. What information does an agent need in order to calculate my monthly mortgage payment?

The agent will need to know the following:
  • Your age
  • The purchase price or valuation price of the property
  • The deposit sum that the vendor requires
  • The loan you require

What is the age limit to access a loan?

Persons who are 18 – 70 years with an income can apply for a mortgage.

Does JN collect a provision of one month’s interest which is applied to the monthly payments?

No. However, the 1st month’s payment is collected one month after disbursement of the loan.

Do you charge GCT on the Mortgage Indemnity Premium?

No.

Does JN provide an Attorney?

While JN has attorneys who handle the transfer, processing and approval of loans, we strongly recommend that customers seek the advice of an independent Attorney. Applicants residing overseas are especially encouraged to seek the professional advice of an attorney to oversee their affairs locally.

At what gross salary can a 10-year mortgage be requested?

The qualifying salary is determined based on the loan sum. It is the net salary for self-employed and gross salary for payee. The qualifying salary is usually three (3) times the monthly payments.

Is it possible to make one lump sum payment with JN for the year?

Yes. In fact, you may make two payments for the year. The minimum for each payment is $50,000 without incurring a penalty.

Is it imperative to start a Life Insurance policy with JN Bank?

While it is not imperative, we strongly recommend that you have this in place.

What is the half cost of transfer?

This is the closing cost agreement between you and the vendor. You will be required to pay half of the following costs:
  • A percentage of the purchase price
  • Registration Fee
  • Costs for Sales Agreement
  • Stamp Duty
Please consult your Attorney for guidance in the regard.

If I am living overseas, can I access a loan to refurbish my property in Jamaica?

Yes, you can access a Home Enhancement Loan Plan at 14.49% interest rate. You can access any amount not exceeding the value of the property.
 
We will require the following documents:
 
  • Photocopy of Certificate of Title
  • Valuation Report on property (done by a Valuator) from the list provided by JN.
  • Income Verification Letter
  • Last two pay slips
  • If self-employed, Statement of Income Confirmation is required from a Chartered Accountant, Cash Flow Projection, Bank Statement, Business License or Registration Certificate
  • Proof of age (Passport, Driver’s License or National ID)
  • Commissioned land surveyors Report
  • Property Tax Certificate
  • Closing Cost of approximately 6% of the loan amount to be lodged to a JN savings account.
  • Approved Plan (if applicable)
  • Detailed Builder’s estimate (if applicable)
  • NHT Referral Letter (if applicable)

Can I get a loan to refurbish my property in the US?

Once you have a residential property in Jamaica, you may access a home loan which offers up to 75% of the value at a special rate of 14.49% which is offered on the reducing balance.
 
The documents required to process this loan are: –
 
  • Photocopy of Certificate of Title that is free.
  • Valuation Report on property (done by a Valuator) from the list provided by JN.
  • Income Verification Letter
  • Last two pay slips
  • If self-employed, Statement of Income Confirmation is required from a Chartered Accountant, Cash Flow Projection, Bank Statement, Business License or Registration Certificate
  • Proof of age (Passport, Driver’s License or National ID)
  • Commissioned land surveyors Report
  • Property Tax Certificate
  • Closing Cost of approximately 6% of the loan amount to be lodged to a JN savings account.
  • Approved Plan (if applicable)
  • Detailed Builder’s estimate (if applicable)
  • NHT Referral Letter (if applicable)
  • Credit Report for overseas applicants

I have a title which is free and would like to get some money to clear off some debts. Do you lend money for this purpose?

Yes, we do. JN Bank has a Home Equity Loan Plan where we will lend you up to 70% of the property value at an interest rate of 17% for a repayment term of 10 years. However the title has to be free.
 
The documents required to process this loan are: –
 
  • Copy of registered Certificate of Title for residential property
  • Proof of your age (copy of Passport or Birth Certificate)
  • Proof of income (letter from your employee and the original and most recent  pay slips for two (2) months’ salary
  • TRN (for local applicants)
  • Valuation Report on the security (to be done by a Valuer on JN’s panel)
  • Surveyor’s Report on the security (to be done by a commissioned surveyor
  • Up-to-date Property Tax Certificate

I have a free title and I would like to borrow some money to pay for my child’s tuition overseas. Can JN Bank give me a loan?

Yes, we can; at an interest rate of 14.49% per annum, whether you are a saver or non-saver. The maximum term we offer on this loan is 10 years. The loan ratio is 70% of the property value.

Do you lend more than $5M?

Yes. The  JN Bank will issue a loan based on your application. We will notify you if and when your loan has been approved.

I am applying for a loan from NHT to help in purchasing a property, but I need to obtain some more money. Do you offer loans along with NHT?

Yes. JN Bank offers loans to purchasers who are getting a part of their financing from NHT under the Joint Financing Mortgage Programme. Under this arrangement JN Bank will lend an amount combined with NHT, not exceeding ninety percent (90%) of the purchase price or valuation of the property, whichever is lower.
 
The documents required to process this loan are:-
 
  • Copy of registered Certificate of Title
  • Proof of your age (copy of Passport or Driver’s License)
  • Proof of income (letter from your employer and the original and most recent pay slips for two (2) months’ salary)
  • TRN (for local callers)
  • Valuation Report (to be done by a Valuer on JN’s panel)
  • Surveyor’s Report (to be done by a commissioned surveyor .
  • Up-to-date Property Tax Certificate
  • Joint Finance Mortgage Programme (JFMP) Application
  • Deposit receipt
  • 5% of loan amount for closing cost
  • NHT employment letter
  • NHT self-employed certificate (If applicable)

Do you give commercial loans?

Yes, we give commercial loans. A residential title will be accepted as security for these loans. However, commercial titles will be accepted, but a higher interest will apply.
 
An interview is conducted by the Manager to determine eligibility for the loan. The commercial loan application is documented and sent to the Credit Committee for assessment and response.
 
Upon receiving a positive response:
 
The applicant would be required to provide documents relating to the residential property for further processing of the loan. These documents are:
 
  • Copy of registered Certificate of Title
  • Notarised copy of your valid identification (Copy of Passport or Driver’s License)
  • Proof of income (letter of employment from your employee and  original and most recent pay slips for two (2) months’ salary)
  • TRN (for local)
  • Valuation Report (to be done by a Valuer on JN’s panel) click here for list
  • Surveyor’s Report (to be done by a Commissioned Land Surveyor).Property Tax Certificate
The loan limit offered for this type of loan is sixty percent (60%) of the value of the security, at an interest rate of 13%. The maximum repayment term of the loan is ten years.

I would like to buy a piece of land and build a house on it. Can I get a loan from JN Bank for this?

You can obtain a loan for your construction project. We will lend you eighty-five percent 85% of the projected value upon completion. The relevant interest rate would apply.

How long does it take to process my mortgage loan?

As soon as all these documents are in place, an interviewing officer at any of our 27 locations will process the loan for you. The time for completion is eight (8) to twelve (12) weeks.

How long will it take for my mortgage loan to be approved?

The processing of a Home Equity and HELP loans are processed in approximately 6 weeks.
 
A loan to purchase property takes approximately 90 days from the signing of the Sales Agreement to loan disbursement. However, an applicant may be advised by his or her Attorney to sign a 120- days contract depending on the complexities of the transaction

Tell me about the JN Mortgage Home Loan. How can I apply?

We will lend Up to 90% financing is offered in Jamaican Dollars for purchasing and building a home; and 70% financing, in other currencies.. If you are accessing the loan under the Joint Financing Mortgage Programme, i.e. with another institution, the combined loan should not exceed 90%.
 
Once you have identified the home and have done a preliminary interview, there are specific documents that you will need to provide for the processing of the loan.