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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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