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Mortgage Rates in Trinidad - Who is Best?

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Azzuri
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Mortgage Rates in Trinidad - Who is Best?

Postby Azzuri » March 27th, 2014, 2:56 pm

According to this article below Mortgage rates are supposed to be down. However, I'm getting quoted between 6.5% to 7.5% from almost every lending institution.

This means, a 29 year old girl with no credit card debt, no ongoing loans (perfect credit history) and with a salary of 27K/mo (permanent job) can only qualify for a Home Purchase loan of 1.4M. (WITH 10% DOWN)

I also have a savings of just under 400K as well. Meaning that I can reasonably afford a house of 1.5-1.6M.

Awhile back Republic Bank put out full page ads where the figures quoted below allowed a person to pay 35% of their salary toward the loan with a 7.5% interest rate.
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However, I called two different loan officers and was told those rates no longer hold and that they only allow persons to pay a max of 30% of their monthly salary toward the mortgage.

I'm getting pretty frustrated. How are young people supposed to afford real estate?


http://www.news.gov.tt/content/mortgage ... zRwjvlT6OA

March 7, 2014: The residential mortgage rates of the local commercial banks have continued to show a downward trend in 2013, according to a statement from the Central Bank on March 4.

According to the statement, the residential mortgage rate on new mortgages fell from 5.32 percent in September 2013 to 4.84 percent in December 2013, having started the year at 6.28 percent.

In addition, the residential mortgage rate on outstanding mortgages dipped to 6.05 percent in December 2013 from 6.16 percent in September 2013 and was 6.95 percent at the end of December 2012.

Lower mortgage rates have helped to support real estate mortgage demand throughout most of 2013 with mortgage lending by the banking sector grew by 13.4 percent in December 2013.

According to the Central Bank, domestic interest rates remained low and liquidity levels in the banking system remained high. Commercial banks’ funding cost, as reflected in the weighted average deposit rate, was unchanged at 0.56 percent in December 2013, while the 15 year Central Government bond yield rose marginally to an estimated 3.21 percent, from 3.15 percent in September 2013.

On this basis the interest rate benchmark for residential mortgages: the Mortgage Market Reference Rate, remained unchanged at 2.25 percent in March 2014.

The statement noted that commercial banks and their affiliated non-bank financial institutions are expected to apply this mortgage rate plus a margin to all existing residential mortgage loans that are due to be re-­priced as well as new mortgages from March 3, 2014.

It added that the margin will be negotiated between the commercial bank and customer. The margin takes into account the customer’s credit rating, the location of the property, the size of the down payment and the size and quality of collateral.

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Re: Mortgage Rates in Trinidad - Who is Best?

Postby Advent » March 27th, 2014, 3:17 pm

totally agreed :(, #rentingforever

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Re: Mortgage Rates in Trinidad - Who is Best?

Postby pete » March 27th, 2014, 3:24 pm

You wouldn't compromise a little and get something cheaper? I did and found somewhere for under 900k to ease the strain. Paying less than what that republic ad says from scotia.

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Re: Mortgage Rates in Trinidad - Who is Best?

Postby drunkenscorpion » March 27th, 2014, 3:34 pm

You can negotiate the rates with the banks depending on if your stated credit history is indeed good. They will check your history, and then based on the results will tell you what the best rate you can get. I have a reduced rate at Scotia as well, and regardless of the bank's rate, I will always be the same basis points lower. And I never even banked with Scotia before that

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Re: Mortgage Rates in Trinidad - Who is Best?

Postby noshownogo » March 27th, 2014, 3:39 pm

Same, never banked with Scotia and I got the most competitive Mortgage rate with them. Lower than advertised figures from all major banks.

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Re: Mortgage Rates in Trinidad - Who is Best?

Postby ADONI » March 27th, 2014, 3:55 pm

Surprise we don't have trailer parks here yet...
Live in a RV outside of work...

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Re: Mortgage Rates in Trinidad - Who is Best?

Postby nemesis » March 27th, 2014, 4:15 pm

Your relationship with the bank and your negotiations go a long way for rates. I got my lowest at Republic and my sis got her best at Scotia. Depends on your situation.

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Azzuri
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Re: Mortgage Rates in Trinidad - Who is Best?

Postby Azzuri » March 27th, 2014, 4:23 pm

Right now I haven't gone in to talk to any loan officers except Home Mortage Bank.

I think I've called pretty much all the banks and then some.

Best rate I got over the phone was at RBC....30 years, 10% down, 6.5%

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Re: Mortgage Rates in Trinidad - Who is Best?

Postby neilsingh100 » March 27th, 2014, 4:27 pm

I am more interested to know how Azzuri was 31 last year and now 29.

viewtopic.php?f=4&t=508483
Hi 2nrs,

Recently I've decided to further my post grad studies with an MBA. My background (if it helps) is that I'm 31, BSc & MSc in Chemical Engineering from UWI. I'm looking to expand my knowledge as I move up the corporate ladder in my workplace. I have also considered doing a Phd, but at this point in my life, I don't have the passion in Chem Eng to do a full Phd.

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Re: Mortgage Rates in Trinidad - Who is Best?

Postby INDAVID WORKSHOP » March 27th, 2014, 5:03 pm

I have my mortgage with TTMF and no issue to date recently refinanced when they had 6% fixed for the entire loan period.

Check the Chaguanas branch best in customer service.

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Re: Mortgage Rates in Trinidad - Who is Best?

Postby Bareback » March 27th, 2014, 5:13 pm

noshownogo wrote:Same, never banked with Scotia and I got the most competitive Mortgage rate with them. Lower than advertised figures from all major banks.

Correct is right, Scotia!

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Re: Mortgage Rates in Trinidad - Who is Best?

Postby S_2NR » March 27th, 2014, 9:34 pm

Get married. Combined income. Otherwise, rent till parents dead.

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Re: Mortgage Rates in Trinidad - Who is Best?

Postby nismodriver » March 27th, 2014, 10:02 pm

And still your better off than alot of those out there with little savings and half of that salary.
Take all the paper work on the house/property you want to buy, take it to the banks.
They will see your serious.
Weigh out downpayment, interest rates etc, then tell them flat, what your getting with other banks.
Most of them have negotiating power, especially for residential homes.
Try other financial institutions as well just to compare...Sagicor, Maritime etc...

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Re: Mortgage Rates in Trinidad - Who is Best?

Postby hong kong phooey » March 27th, 2014, 10:45 pm

If you want a 1.6 million house and the bank giving you a 1.4 million loan get the owner of the property to value the house at 1.4 million and the appliances, accs, etc, at 200 thousand.
pay that part cash and get the loan for 1.4 mil.
I would advise you to speak to your lawyer because you also have a tax to pay (forgot the name ) which is based on the value of the property and also legal fees.

Even better talk to your parents see if you can get a loan from the bank of daddy because he probably getting 1 % on his money in the bank

Banks are business and they main concern is to make a profit for the shareholders

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Re: Mortgage Rates in Trinidad - Who is Best?

Postby crazychinee » March 28th, 2014, 4:46 am

Most banks hover between 30% and 40% as your DSR, and they might cap the Mortgage part of the DSR between 30% and 35%.

The reason why you are getting that rate is probably because your credit stinks, or you have none.
Goto Transunion on Carlos street, and request a copy. it costs about $87.

I did a mortgage in 2013, and got 5.6%, and another last month and got 5%.

But a rate shouldn't be your most important thing. Closing costs , the ability to prepay on the principal , and other fine print are also very imporant. Example scotia bank will not mortgage a house when the valuation says it's in a "fair" condition.

PM if you need some more help.

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Re: Mortgage Rates in Trinidad - Who is Best?

Postby subie_2NR » March 28th, 2014, 4:58 am

If you have $400k in savings and work for 27K a month, look for T&C approved lot, buy cash then take the land as security and get a loan for construction.
This process will lake much longer but at the end of the day you are not sacrificing yourself to pay a 30yr mortgage and you get a house that you want.

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Re: Mortgage Rates in Trinidad - Who is Best?

Postby hong kong phooey » March 28th, 2014, 5:10 am

or you should not post your finances on tuner there are some people who view these fourms for other reasons

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Re: Mortgage Rates in Trinidad - Who is Best?

Postby JD...... » March 28th, 2014, 6:07 am

RBC quoted 5.75% for 30 years
Republic 5.5% (5.25% if you can pull it off)
TTMF, with a salary over a certain amount the % is too high

Both banks were only able to lend up to 90% the value of the property.
have 150K for closing fees etc.
Personally i think you will be able to get around 1.8m easy.

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Re: Mortgage Rates in Trinidad - Who is Best?

Postby lalloboy101 » March 28th, 2014, 6:13 am

subie_2NR wrote:If you have $400k in savings and work for 27K a month, look for T&C approved lot, buy cash then take the land as security and get a loan for construction.
This process will lake much longer but at the end of the day you are not sacrificing yourself to pay a 30yr mortgage and you get a house that you want.


Best advice so far

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Re: Mortgage Rates in Trinidad - Who is Best?

Postby ~*Pãñdorą*~ » March 28th, 2014, 6:34 am

subie_2NR wrote:If you have $400k in savings and work for 27K a month, look for T&C approved lot, buy cash then take the land as security and get a loan for construction.
This process will lake much longer but at the end of the day you are not sacrificing yourself to pay a 30yr mortgage and you get a house that you want.


Never thought of it this way.. Good advice.

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Re: Mortgage Rates in Trinidad - Who is Best?

Postby dineshb316 » March 28th, 2014, 6:46 am

Getting the mortgage should be simple enough, just ensure the property owners have all the papers in order and in hand (not awaiting approvals) cause i recently went through the process and had many delays eg plans were done incorrectly, final approval delays etc. ( took me more than 6 mnths to close off the process).You will be guaranteed however with the bank's lawyers they ensure everything is legit and up to standard. I dealt with republic bank and the law firm they utilize is Pollonais, Blanc, de la Bastide & Jacelon.

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Re: Mortgage Rates in Trinidad - Who is Best?

Postby shake d livin wake d dead » March 28th, 2014, 7:29 am

FCB had a nice loan sale late last year where interest rates were 5.5% for 10 years (buying land)

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Re: Mortgage Rates in Trinidad - Who is Best?

Postby ray d saint » March 28th, 2014, 8:27 am

subie_2NR wrote:If you have $400k in savings and work for 27K a month, look for T&C approved lot, buy cash then take the land as security and get a loan for construction.
This process will lake much longer but at the end of the day you are not sacrificing yourself to pay a 30yr mortgage and you get a house that you want.



This is what i am doing.

However a loan/mortgage for Construction is classed different from Land and House Acquisition, so i was told by both HMB and RBL.

Currently in talks with RBC, will let u all kno the outcome.

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Re: Mortgage Rates in Trinidad - Who is Best?

Postby scotty_buttons » March 28th, 2014, 8:32 am

lalloboy101 wrote:
subie_2NR wrote:If you have $400k in savings and work for 27K a month, look for T&C approved lot, buy cash then take the land as security and get a loan for construction.
This process will lake much longer but at the end of the day you are not sacrificing yourself to pay a 30yr mortgage and you get a house that you want.


Best advice so far


X2

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Re: Mortgage Rates in Trinidad - Who is Best?

Postby S_2NR » March 28th, 2014, 8:36 am

hong kong phooey wrote:or you should not post your finances on tuner there are some people who view these fourms for other reasons


Bandit doh have internet apparently

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Re: Mortgage Rates in Trinidad - Who is Best?

Postby pete » March 28th, 2014, 8:48 am

With building the real pressure comes with the bridging finance right? So all the money you start to pay in bridging does not go towards the final mortgage. So to cut down the time between the allocation of money and the completion certificate being issued (when you start the mortgage) would reduce money wasted in that.

How about this scenario. Savings 400k, land price 400. Salary 27k. (Around 22k after taxes)

Take 25% as downpayment for a land loan, go to the bank and get a 10 year loan for 300k for the rest. Monthly payment for that should be around 3500/month.

Take the 300k from the bank and start to build while still saving as much as possible. If the total price to build the house is going to be 600k then go back to the bank after for the other 300k for building the house. That way you'll only be paying bridging costs on the 300k instead of 600k.

Then once the house is complete get one mortgage to cover all of the remaining owed on the land and building.

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Re: Mortgage Rates in Trinidad - Who is Best?

Postby dougla_boy » March 28th, 2014, 8:55 am

in for info

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Re: Mortgage Rates in Trinidad - Who is Best?

Postby mitch1980 » March 28th, 2014, 9:21 am

subie_2NR wrote:If you have $400k in savings and work for 27K a month, look for T&C approved lot, buy cash then take the land as security and get a loan for construction.
This process will lake much longer but at the end of the day you are not sacrificing yourself to pay a 30yr mortgage and you get a house that you want.



Simply the best advice you can take
SMART SMART move

I was in the same boat as you OP

father told me to do this
3 years now i took the mortgage.

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Re: Mortgage Rates in Trinidad - Who is Best?

Postby subie_2NR » March 28th, 2014, 9:28 am

That's what I'm doing. I refuse to take any mortgage. The interest you pay back is ridiculous.

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Re: Mortgage Rates in Trinidad - Who is Best?

Postby teems1 » March 28th, 2014, 9:43 am

subie_2NR wrote:If you have $400k in savings and work for 27K a month, look for T&C approved lot, buy cash then take the land as security and get a loan for construction.
This process will lake much longer but at the end of the day you are not sacrificing yourself to pay a 30yr mortgage and you get a house that you want.


Acquiring land is the problem. In a good area it's near impossible to find T&C approved land that hasn't already been sold or in the process of being sold.

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