VMBS Launches $ 1.4 Billion Mortgage Fund for Self-Employed and Contract Workers – Taxi Drivers, Hairdressers and Plumbers Among Beneficiaries | Business

Victoria Mutual Building Society (VMBS) President and CEO Courtney Campbell announced on Friday the launch of a new 100% mortgage offering for Jamaican self-employed and contract workers.

These groups, including taxi drivers, hairdressers, plumbers, electricians, micro-business owners and contract workers have often been denied loans and mortgages because their incomes “were inconsistent”. Campbell said during a press briefing at the Courtleigh Hotel, New Kingston.

He said that with Victoria Mutual’s new offer, anyone who pays rent and is a constant saver would be 100% eligible for the loan, noting that the target group also has difficulty paying the home deposit fee.

The mortgage offer is priced at 8.5 percent with a repayment term of 30 years.

Loan amounts under the new program range up to $ 3 million for residential land and up to $ 15 million for houses.

Citing an example, Victoria Mutual said the payment requirement for a 30-year-old borrowing $ 15 million over 30 years would be in the range of $ 115,000 per month.

The product, designed for specialty groups, offers flexible repayment terms, including weekly, bi-monthly or monthly, said Paul Elliot, vice president of sales and services at VMBS.

He said those who access mortgages would improve their equity with every payment, rather than paying rent.

To be eligible, borrowers will need to save with VMBS for six months before applying for mortgages, or reactivate dormant accounts and save with the institution for three months before applying.

Campbell told the Financial Gleaner that $ 1.4 billion had been set aside for the new sub-portfolio, and that the amount would be reviewed if it was exhausted before the end of the fiscal year.

VMBS is one of Jamaica’s largest mortgage lenders, with a residential loan portfolio of approximately $ 50 billion. Campbell said growth over the past fiscal year was double-digit.

He said VMBS would use Jamaica Mortgage Bank’s mortgage indemnity insurance program to manage risks in the new portfolio, but VM would also do its due diligence on each borrower, closely examining their repayment capacity. .

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