Frequently Asked Questions

  • General
  • What is a mortgage?

    A mortgage is a loan obtained to purchase real estate. The "mortgage" itself is a lien (a legal claim) on the home or property that secures the promise to pay the debt. All mortgages have two features in common: principal and interest.

  • What can a potential residential mortgagor obtain with a mortgage loan from VMBS?

    A potential house owner can build on their own land, buy an existing house, apartment or residential lot and make improvements or additions to property.

  • What percentage should eligible savers save to qualify for lower interest rate benefits on a mortgage loan?

    Eligible Saver who saves 20% of the loan sought over a year receives lower interest rate benefits.

  • What is the maximum period for a Purchase/Home Improvement loan?

    Loans are given for a maximum of 35 years depending on the borrower's age.

  • Can non-residents become mortgagors?

    Customers and potential customers living in Jamaica or overseas can take advantage of our low mortgage rates.

  • Should I apply for the NHT Loan separately?

    No. Home loans from both VMBS and the National Housing Trust (NHT) may apply directly through any VMBS branch.

  • Will there be two application forms to fill out for VMBS and NHT alike?

    No, applicants must fill in one application form for VMBS/ NHT Joint Financing.

  • Why Should I choose Victoria Mutual as my Mortgage Provider?

    Regardless of the size or location, home ownership stands as a symbol of personal accomplishment and independence. Take advantage of the benefits available at the Victoria Mutual Building Society (VMBS).  

    Regardless of the size or location, home ownership stands as a symbol of personal accomplishment and independence. Take advantage of the benefits available at the Victoria Mutual Building Society (VMBS).  

    Features & Benefits:

    • The Best Mortgage Rate in Jamaica 9.29% per annum on Jamaican Dollar Mortgages
    • 5% per annum on Foreign Currency Mortgages (USD/CAD/POUNDS)
    • Loan terms up to 35 years*
    • Available to local and overseas residents;
    • Fast turn-around on approvals
    • VMBS/NHT Joint Financing facilitation – one application for your convenience
    • No Processing/Commitment Fees
    • 25% Discounts on property valuations through VM Property Services Limited
    • 15% discount on one year's motor insurance through British Caribbean Insurance Company (BCIC)

     

  • Should I Buy?

    The big benefits of home ownership

    There are a lot of other good reasons to own a home. One of the best, financially speaking, is the opportunity to benefit from appreciation as the value of your home rises through the years. In fact, if you're like most people, buying a home can be the smartest financial decision you'll ever make.

    Your Home creates wealth in two ways

    Equity Built up over time

    Mortgages require you to pay down your balance over time, creating a form of "forced savings." Even if your home never appreciates at all, you gradually build up more equity over time with your payments.

    Appreciation

    Of course, most houses in Jamaica do appreciate, averaging about 20% a year over the past 10 years. And thanks to your mortgage, you get to take advantage of that appreciation using leverage. That means using a little of your own money, plus a lot of someone else's money (in this case, the mortgage lender's) to make even more money.

     
    Here’s an example

    Here's how it works. Say you purchased a Quad in Greater Portmore in 1991 for $90,000 and they have been appreciating at an annual rate of about 23%. In 2005, your house would be worth more than $1.6m. That means your down payment -- $9,000 -- would have grown to equity that equals $1,519,000. The growth in your home's value represents a return of 275% per year on your original investment.

    Even if you take out maintenance costs of 2% of the home's value each year and throw in another 1% for Peril insurance and utility bills, you're still looking at a return of more than 200% a year.

    But this calculation also comes with caveats:

    • If you sell your home within 3 years you won't get all of the benefit. Every time you change homes, you lose about 20% of the value to selling and moving costs.
    • Out-of-control spenders can still lose. If you drain off every dollar in appreciation through home equity loans and lines of credit, you aren't building wealth -- you're destroying it.
    • Home prices don't always appreciate. Sometimes they plateau or even decline. There have been periods in our real estate market where you would have been better off renting and investing your down payment in the stock market. Overall buying a home is the best alternative for most persons, as it carries great benefits for you and your family, but, you must be ready for this commitment to find the required deposit and closing costs, noisy neighbors and sometimes, unexpected expenses.

    Homeownership as we have discovered, is not a 'one size fits all' it must be seen as part of our wealth creation strategy and we must choose the option that best suits our particular circumstances in life.