Thursday 22 August, 2019

VMBS launches special mortgage product for self-employed Jamaicans

President and CEO of the Victoria Mutual Group Courtney Campbell said the new product was in keeping with Victoria Mutual’s commitment to helping Jamaicans own their homes and achieve financial independence.

President and CEO of the Victoria Mutual Group Courtney Campbell said the new product was in keeping with Victoria Mutual’s commitment to helping Jamaicans own their homes and achieve financial independence.

Victoria Mutual Building Society  (VMBS) has earmarked $1.4 billion for a new mortgage product for self-employed individuals.

The product, referred to as the “100 per cent Mortgage Solutions for Specialised Groups”, will be available to approximately 100,000 potential applicants - who demonstrate the ability and discipline required for home ownership.

This specialised group includes plumbers, electricians, hairdressers, taxi owners and contract workers.

Borrowers will be offered 100 per cent financing to purchase residential property valued as much as $15 million and for residential land valued up to $3 million, at an interest rate of 8.5 per annum, with a flexible repayment schedule - weekly, fortnightly or monthly.

President and CEO of the Victoria Mutual Group Courtney Campbell said the offering was in keeping with Victoria Mutual’s commitment to helping Jamaicans own their homes and achieve financial independence.

“We don’t believe that they should be denied the joys of home ownership. So, we came up with a solution,” said Campbell. “The 100 per cent Mortgage Solution for Specialised Groups demonstrates our commitment to making homeownership accessible to more Jamaicans,” he told a press briefing to announce the new product on Friday.

As for the expected contribution to the company's mortgage portfolio, Campbell said: “the new product will help accelerate the growth of VMBS’ mortgage portfolio, which grew by $5 billion last year.”

Campbell also noted that to ensure borrower’s creditworthiness, the company would help foster a discipline of saving and also help with financial counselling.

“It’s not just about saving with us and borrowing from us. We will offer financial counselling. We want to ensure that you have thought about not just repaying the mortgage, but all aspects of your financial affairs,” Campbell said.

He also said the company continues to offer the most competitive mortgage package in the market.

“We offer competitive rates, our fees are like a fraction of the competitor’s fees, that is .5 per cent and for this specialised group, the mortgage fee is capped at $58,000,” Campbell said.

He noted that VM offers longer repayment period, lower insurance rates, lower mortgage processing fees and lower valuation costs.

Campbell noted that two years ago, Victoria Mutual launched 97 per cent mortgage financing and that this new solution is another step to help more persons to own their homes.

 

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