It is a source of income. If your title is not free, we will refinance the mortgage with the other institution.
The Reverse Mortgage is a special mortgage designed for persons who have retired and need an income. It is a fixed amount advanced monthly to elderly applicants for up to 5 years renewable (using registered certificate title as security).
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.
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.
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 *
- 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
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.
The Pre-Approval letter will be valid for 90 days from the date of issue.
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.
- 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
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 value of the property that has been insured and the premium rate is dependent on the location of the property, structure and usage. The percentage currently ranges from .5% (.35%) for strata contingencies such as apartments, to .875% (.95%) on Household Comprehensive Coverage.
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.
