Accessing a VMBS Mortgage
There are three main factors that are to be combined to determine whether or not as a prospective home owner you can qualify for a Victoria Mutual Building Society mortgage. It is important to note that the same factors are largely applicable across the entire real estate mortgage-financing sphere in Jamaica.
How do we Evaluate a Mortgage Application
There are three general principles involved in evaluating mortgage applications:
- Affordability, which is usually determined by the ratio between your gross income and your expected monthly mortgage payment. Preferably, your monthly mortgage payment should represent no more than 30% of gross monthly income.
- Credit worthiness and history, including your own character.
- Collateral. The property used is also important as this must be valued in excess of the amount of the loan.
- The Deposit– Outside of special offers, a deposit of 15 percent of the purchase price is usually required to be paid over to the vendor (seller) by the prospective purchaser.
- NHT Benefits- Your VMBS Credit Officer will seek to determine if you qualify for National Housing Trust (NHT) financing, which would help to lower the monthly mortgage payment.
- Closing Costs– In order to complete your purchase you will be required to meet the pre-payable expenses and closing costs, such as for transfer tax, stamp duty and legal fees, which could range between 10 to 13 percent of the purchase price of the property.
Supporting documents to get you started
- A VMBS loan application form
- Sale agreement
- Valuation report
- Copy of title
- Proof of income if you are self employed and a letter from your employer if not.
- Self-employed persons will also need to submit their audited financial statements, but if they are informal, you can do a personal statement of affairs and substantiate this with bank records to show that you have the required level of financial inflows.