NATIONAL INSURANCE BOARD
MORTGAGE LOAN
TERMS & CONDITIONS
All applications for housing
loans are subject to the following terms and conditions:
1. (a) Applicants
must be between the ages of twenty-one (21) and sixty (60) years.
(b)
Applicants must be resident citizens of Grenada. In the case of joint
applications, at least one of the applicants must so qualify.
(c)
A joint application may be submitted by applicants who would be required
to fulfill the terms and conditions for mortgage financing.
2. (a) Loans are
available as follows:
Interest Rates (Revised April 2006)
EC$
Up to 150,000.00 7%
Over 150,000.00 7.5%
Over 200,000.00 8%
(b)
There shall be a minimum loan limit of $10,000.00.
(c)
Additional loans approved will be secured by a Deed of Further Charge
and maintained as separate loans at the appropriate rate of interest.
(d) Mortgages will be granted for construction, repair/remodel, refinance
and purchase of property to include land only and consolidation. These loans shall be granted for a maximum period of thirty (30)
years.
(e)
Loans for land will be granted for a maximum period of fifteen (15)
years with an equity contribution of 10% of the cost of the land
at the existing established limits.
3. An administrative fee
of $200.00 shall be charged and payable by the applicant on all
approved loans.
4. Applicants for
mortgages must submit the following:
(a)
Evidence of a purchase agreement for the property which he/she intends
to purchase with the proceeds of the loan together with a copy of the vendor’s
title deed; or
(b)
Evidence of ownership of, or title to land on which he/she intends to
build a house or carry out home improvement with the proceeds of the loan.
(c)
Valuation of the property and estimated cost of construction or repairs,
which must be done by one of the following contractors:
|
Contractors
|
Tel. No.
|
Contractors
|
Tel. No.
|
|
Joseph John &
Associates
|
440-4015/2966
|
Sinclair & Assoc
|
440-1276
|
|
Gleans Construction
Engineering
|
440-8686
|
Earl Stanisclaus
|
443-6754/6926
|
|
Anslem La Touche
|
444-5217
|
Kenrick Gabriel &
Assoc
|
443-3262
|
|
Fanuel Antoine
|
440-2271/7448
|
Architects Design
Collaboration
|
443-6649
|
|
Francis A. Jeremiah
& Assoc
|
444-3295
|
Lauriston
Hosten
|
444-8417
|
|
Trade Realtors
|
444-5105/440-2111
|
Collaborative Designs
& Consultancy Grouping
|
443-2835
|
|
Raphael Stephen
|
440-1159/435-1906 (w)
|
Denslie Noel
|
443-5745
|
|
J.R.A. Fletcher (JCN
Construction Ltd)
|
442-8151
|
Otis Gay
|
443-8078
420-1199
|
|
Rufus Bethel
|
440-9828/7453
|
Terence Smith
|
443-2323
|
|
Peter Morris
|
403-9821
416-4130
|
Phillip Reginald
Alexander
|
438-3894
|
|
Boris Michael Horsford
|
409-1641
|
Leslie Barry
|
405-2888
|
|
Samuel La Touche
|
407-4769
|
|
|
(d)
A plan approved by the Land Control Development Authority.
(e)
Proof of income.
5. A
first mortgage on the property to the Board will be required, and any other
form of security, which may be deemed appropriate for the loan granted.
6. In
addition to provision of a first mortgage, the applicant shall be required to
provide ALL RISKS (comprehensive) coverage on the mortgaged
property. The property should also be insured during the construction period.
A re-valuation of your property will have to be done every five (5)
years to ensure that the sum assured of your building is up to the replacement
value.
7. All
applicants would be insured under the NIS Group Creditors Life Insurance with
the Demerara Mutual Life Assurance Society.
8. All
estimates shall include a 10% contingency sum as a component of
the total amount of the loan to cover material increases, NIS contributions or
other unforeseen expenditure.
9. In
the event that a loan is approved and not taken up within six (6)
months, a new application would have to be submitted.
10. As
a guide, repayment of a housing loan may not exceed 40% of the applicants’
gross monthly income. The most important criterion is the applicant’s ability
to undertake the commitment detriment to his/her standard of living, with
consideration given to all the facts pertinent to the applicant’s case.
11. Repayment
of loans granted for construction shall commence no later than six (6)
months after the first disbursement or one (1) month after the
last disbursement whichever is sooner. In the case of loans taken for
construction of apartments for rent repayment shall commence three (3) months
after the first disbursement or one month after the last whichever is sooner.
Repayment on all other loans shall commence one (1) month after
the disbursement. Interests will be due and payable each month during the
period of disbursement.
12. All applicants are
required to make an equity contribution of at least 10% of the
sum applied for.
13. Applicants shall be
responsible for the payment of all legal fees prior to disbursement of funds.
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