Purchasing a home is an exciting journey, but there are many important decisions to be made, from the neighborhoods that make it to your preferred short list, to the number of bedrooms and bathrooms you need to be comfortable. However, the mortgage facility you use trumps all other decisions because it has the power to affect your personal budget for many years to come.
Despite the heavy weight nature of this decision many Trinidadians are not in the habit of exploring their options in this regard. There is an overriding practice of consulting mainly with the bank with which personal accounts are held. This habit can be costly, so if you are in the market for a new home it is worth your while to get familiar with the mortgage options available across the industry.
It is in this vein that TriniRealty has decided to put the spotlight on the major mortgage facility options currently available. This week the focus is on RBTT.
The following are some of the frequently asked questions about the mortgage process as it pertains to the RBTT facility.
What mortgage interest rate is currently being offered at RBTT?
6.75% per annum. This is a variable interest rate which may be adjusted by the bank based on market conditions. (this rate is subject to change, dependent on movements in the REPO rate set by the Central Bank)
What are the special features of an RBTT mortgage?
RBTT has lowered the interest rate on new residential mortgages but nothing else has changed. Customers can still pay down as little as 10% and have as long as 30 years to repay.
RBTT is currently cancelling the first year of membership fees (valued at $225) on its credit cards for mortgage loan customers. In addition, the first year of membership fees (up to $225) on new credit cards for mortgage customers is free. The credit card can then be used to purchase furniture and appliances for your new home.
RBTT is also offering up to 25% off of existing loan rates if new mortgage clients wish to take an additional loan to make home improvements. The bank also has relationships with certain household stores so its customers can capitalize on even more discounts.
New mortgage holders can also qualify for up to 30% off on their home owner’s insurance.
Is it possible to make lump sum prepayments that go directly to your principal?
Yes. You can make lump sum payments of a minimum of $20,000 per month. It is advised to specify that your intention is to make a payment directly to the principal otherwise your funds may be used as a prepayment on your next mortgage payment(s).
How does a person who has no prior relationship with your bank apply for a mortgage loan?
To apply for a mortgage loan you will need;
- 2 forms of national identification
- A job letter and pay slip
- Property deed
- Sale agreement
- Valuation report
- Current land and building taxes receipt
- WASA Clearance certificate
How long does the process take?
Most applicants receive their Letter of Offer (loan approval) well before 10 days from the first meeting. The entire process, including legal work and title fees connected to the property can take up to 45 days.
TriniRealty will continue this series to provide up-to-date information on all mortgage facilities available in the industry so you can make your comparisons.
RBTT Mortgage Quick FAQs
You can apply for a mortgage loan for any of the following purposes:
- Purchase of your new home
- Purchase of residential land
- Construction of your home
- Home renovation
- Consolidation of debts
- Investments
- Education
- Medical expenses
- Minimum age: 18 years
- Gainfully employed (salaried/self employed)
- Good Credit History
- Total loan/rent payments, inclusive of the proposed mortgage, not to exceed 40% of your gross income. However, for the duration of the current “In Easy Reach” mortgage campaign, this ratio has been adjusted to 35%
- The loan must be repaid by age 60 years, however special conditions apply
- As with all loan facilities, mortgage loans are subject to normal lending criteria.
- All costs are available to clients on request.
- 2 forms of identification
- Current job letter and pay slip/financial statements if self-employed
- Deed of property
- Sale agreement
- Valuation report
- Current Land and Building Taxes receipt
- WASA Clearance Certificate
- Approved plans - Town and Country planning
- Builder's estimate and references
- Quantity Surveyor's report
- Most recently paid WASA bill (for renovations only).
Clients can receive immediate conditional approval. If the documents referred to above are in hand, most applicants receive their Letter of Offer (loan approval) within 10 days from the first meeting. The entire process, up to granting of the mortgage, can be completed as quickly as 45 days.
- Day 1 : Just Call us or come in to discuss your request, and receive instant conditional approval
- Day 10: Final approval and issuance of the Letter of Offer
- Day 25: You have up to 14 days to accept the offer and pay the fees. Attorneys will be advised to start the legal work including the title searches.
- Day 45: Once there are no complications with the title search, you would be contacted to visit the lawyers to sign the documents.
- Fast approval
- Value added "one stop shop" to meet all your home acquisition/renovation and other household needs
- Up to 93% financing
- Switch your existing mortgage over to RBTT at no cost
- Free membership to RBTT Home Rewards Card Club, which entitles you to discounts at participating hardware and furniture shops.
- Guidance and support from our experienced mortgage experts
Yes. You may enter a mortgage singly or with one or more persons. However, in cases where the mortgage over a couple's matrimonial home is to be taken, both parties must be joint on the loan are responsible for repayment of the loan.
Yes. At present, lump sum payments of a minimum of ,000 are permitted on any day appointed for the payment of the monthly installments, without penalty or notice. However, at the time of making this payment you should specify whether your intentions is to pre-pay the mortgage or have the payment applied directly to principal.
Making lump sum payments to the mortgage, and specifying that the funds are to be applied to the principal, will reduce the term of the loan. Early re-payment will reduce the amount of interest paid to the Bank.
No. We do not charge penalty interest for early repayment of a mortgage loan. However you are required to let your Mortgage Officer know of your intent to settle the loan.
- Homeowners Comprehensive Policy - to cover your investment in the property in event of a loss due to fire, floods, hurricane, earthquake, burglary etc.
- Life Insurance - to protect your family's interest in their home in the event of death of one of the mortgagor(s).
- Mortgage Indemnity Insurance - to allow you access to more money for the purchase of your home.
- Contractors All Risk Policy (Construction) - to cover risks during construction.
Below is a table which gives an indication of the monthly installment and the qualifying income necessary for a specified loan amount.
These figures have been calculated using the current interest rate offer of 6.75%, amortizing the principal over a term of 25yrs. For the duration of this campaign, we have adjusted the Total Debt Service Ratio to 35% of the client’s gross income.
| Value of Mortgage | Monthly Payment | Qualifying Income |
| $ 300,000 | $ 2,072.73 | $ 5,923 |
| $ 400,000 | $ 2,763.65 | $ 7,897 |
| $ 500,000 | $ 3,454.56 | $ 9,871 |
| $ 600,000 | $ 4,145.47 | $ 11,845 |
| $ 700,000 | $ 4,863.38 | $ 13,819 |
| $ 800,000 | $ 5,527.29 | $ 15,793 |
| $ 900,000 | $ 6,218.20 | $ 17,767 |
| $ 1,000,000 | $ 6,909.12 | $ 19,741 |
RBTT Home Mortgage Centres are conveniently located at the following branches:
| - Arima | - Carlton Center | - Chaguanas | - Diego Martin |
| - Gulf City | - High Street | - Independence Sq | - Maraval |
| - Park Street | - Pointe-a-Pierre | - Point Fortin | - San Juan |
| - Scarborough | - St Augustine | - Trincity | - West Mall |