A mortgage is the primary financial pathway to own land and property. This option is for any person who may not have the finances to purchase immediately. While it has become the main part of the home buying process for many people, some still have questions about how they can obtain one or if it’s a wise financial decision to make.
Here are some important points to note about mortgages and how to obtain one in Trinidad and Tobago:
First off, what is a mortgage?
A mortgage is a type of loan that is specifically used to purchase a home. When you are approved for a loan, the lender will give you a specific amount of money to purchase the land or building. In return, you agree to pay back the loan with interest over a set period of time. The exact numbers are found through various factors such as:
- The interest rate- This is determined by 2 factors which are the current market rates and the “risk” the lender takes to lend you money.
- The amount of money you are eligible to borrow- This depends on what you can afford, the assets you have, your credit rating, and the market value of the home you wish to purchase. The lender will assess your current financial situation by assessing your income, credit history and your debt service to decide on what amount to lend to you.
How can I obtain a mortgage in Trinidad and Tobago?
Financial institutions in Trinidad and Tobago often follow similar protocols but each may have its specific requirements. It is important to call or look on their website to learn more about the application process for the institution you choose to get a mortgage with.
Typically, it is broken into 3 main parts:
Pre-Qualification Stage - this is where you present yourself and your financial situation, this includes ID, proof of income, savings and debts. This would typically include a letter from an employer, statements from banks, credit unions and/ or trusts etc. This step is essentially where the lender evaluates how much they can lend you or request additional documents that you must produce to get the value that you want.
Application Process: Once you are qualified and you have a property you want to buy you can then begin the application process. This requires you to submit more documents related to finances and purchase documents related to the property or estate, the agreement of sale, Certificate of Title or Land Register, a WASA Clearance Certificate, insurance coverage and more.
Closing & Disbursement: After the approval for the application is complete, this will be the phase when you purchase your home. This includes legal documents such as the signing of the Deed of Mortgage, stamped documents by BIR, completion certificate and required payments for the home.
As we mentioned before each institution will have various requirements and steps, for instance, Scotiabank has it broken down into 4 stages rather than 3.
Below are the links for some financial institutions in the country and their respective web pages with their Mortgage information and requirements:
- RBC
- TTMF
- Sagicor
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