Republic Bank has a long history in Trinidad & Tobago that stretches well over 150 years, during which time the bank has served the country under various incarnations.
Following up on TriniRealty quest to provide a comparison of mortgage financing available across the country, this week we take a look at the Republic Bank facility.
What mortgage interest rate is currently being offered at Republic Bank?
6.99% The bank maintains that this is not a ‘special rate’ but simply part of RBL’s guarantee to keep mortgage rates as low as possible. The interest rate is adjustable and it is calculated on a reducing balance method, which means that the amount that goes to your principal is deducted each month before calculating the interest payable for the current month.
What are the special features of a Republic Bank mortgage?
Republic Bank offers up to 33% off of building supplies, furniture and fittings at select stores. The bank also offers a medium-term loan to cover mortgage related costs such as the down payment and closing costs.
RBL also uses one of the highest debt to income ratios to calculate how much mortgage you can carry, which means that you may qualify for a bigger mortgage at RBL than another bank because they are willing to allow you to put up to 40% of your gross income towards your mortgage while other banks may use more conservative figures.
Is it possible to make lump sum prepayments that go directly to your principal?
You can make lump sum prepayments but you need to give the bank 3 months written notice and specify that the payment is to go directly to your principal.
How does a person who has no prior relationship with your bank apply for a mortgage loan?
- At the application stage all you need to bring are;
- 2 forms of valid national identification
- A job letter stating your salary, length of service and other benefits or if you are self-employed you can walk with a certified statement of income (which is prepared by an accountant) or bank statements for the past three years.
- All financial information including loans and deposits that are held at institutions other than RBL.
When you are at the disbursement phase and you have settled on the property you would like to buy, you will have to bring the following in order to close your mortgage;
- The Purchase Agreement
- The Deed of Conveyance
- WASA Clearance Certificate
- A Valuation Report
- A Completion Certificate (if it is new construction)
If you would like to apply for an RBL mortgage you can visit any of the RBL branches located nationwide.