Mortgage FAQs

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 JNBS 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.

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

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), JNBS 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, JNBS will settle the insurance premiums with the insurance company.

JNBS 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 NEM 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, JNBS submits it to NEM, who will put your peril insurance coverage in place.
  • The coverage will take effect on the date of the loan disbursement.

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

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.

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 Society’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

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

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.

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.

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.

Settlement will be disbursed in the form of cheques or direct lodgements to JNBS’ 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.

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

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:

  1. Steps must be taken to protect self and property
  2. Temporary repairs can be undertaken to protect property and to prevent further loss
  3. Photographs are to be taken of damage before repairs
  4. Bills/receipts relating to temporary repairs are to be kept for submission
  5. Nearest police station to be indicated on form

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.

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

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

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)

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

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

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