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Overview

Why Choose Republic Bank

How we make it happen...

Republic Bank Limited can make your dream of a new home a quick and affordable reality through a range of Mortgage loans that are especially designed to meet your specific needs. These include:

  • Residential Mortgages - for buying or building your home.

  • Land Loans - for the purchase of land.

  • Bridging Finance - for construction of the building on your land.

Why should I obtain my mortgage financing at Republic Bank?

Republic Bank's mortgage package is designed with you in mind, tailored to suit your individual needs. We offer you affordability and quality service as well as other value added features. Our competitive packages include:-



The Mortgage Process

Stage 1
Mortgage Certificate Stage

The Mortgage Certificate is a form of pre-qualification for the loan and is presented to you after Republic Bank analyzes your current income, debt servicing and basic credit history to determine the maximum loan amount for which you may qualify. This is of course subject to the value of the property representing an acceptable loan to value ratio and the location of the property being acceptable to the Bank

Your Mortgage Certificate is valid for a period of three months from the date of issuance and allows you the opportunity to locate your land, dream home or building contractors (when constructing your home). If you do not have all the required documents (listed below) on hand when you visit our branches, our Sales Officers can still calculate the financing for which you qualify by asking you a few questions during the interview. You will get the official Mortgage Certificate when you bring in the required documents at a later date.


Documents/ Information required

At the first stage, the Bank determines the level of financing for which you qualify, therefore you will be required to produce documents that show your financial standing. These are:-

  • A letter from your employer stating salary, allowances, employment status and length of service, as well as a recent payslip. For self-employed persons instead of a payslip you can provide a certified statement of income (prepared by an accountant) or financial/bank statements for the last three years
  • The name and address of your bankers
  • All bank and other financial institutions statements reflecting your deposit and loan balances with applicable installments. This information can be retrieved for Republic Bank customers.
  • Two forms of valid identification (ID card, Passport or Driver's Permit

The Sales Officer will also require your authorization to perform a credit check.



Stage 2
Letter of Offer Stage


This is the most involved and important stage of the three stages. it entails:-

  1. Completing an application Form
  2. Receiving a Letter of Offer
  3. Providing additional documents
  4. Meeting Insurance, legal and costs requirements

If you are purchasing your home or land and have identified the seller, the Sales Officer can complete the mortgage application using the documents you supplied in the first stage and you just need to supply the address of the property and the purchase price. (Please note the different procedure in the "Building your home" section)

When your mortgage application has been approved you will receive your Letter of Offer which confirms that the Bank is extending mortgage financing to you and outlines the main terms and conditions of the mortgage.

When purchasing your home

In order to arrive at the stage of disbursement the Bank needs to determine that the property you wish to purchase is of acceptable security. Therefore you will need:-

  1. The purchase agreement
  2. A copy of the title document – Deed of Conveyance/Lease, Certificate of Title
  3. Copies of up-to-date receipts for lease rent (if applicable), land and building taxes and WASA rates
  4. A WASA Clearance Certificate
  5. A Valuation report (to be obtained from one of Republic Bank's approved valuators )
  6. A copy of the existing mortgage deed (if applicable)
  7. Completion Certificate from the relevant Local Government Authority if the property is new, i.e. recently constructed.

When purchasing land

The documents required for the purchase of land are the same as for the purchase of a home, except that in the case of land purchases the land and building tax will be replaced by a land tax receipt and the Completion Certificate is not required.

Building your home

If you own or are buying land and want to build your own home, you will need Bridging Finance. The purpose of this financing is to bridge the gap between construction and completion of your home by providing the necessary funds during the construction phase.

Unlike the procedure when purchasing your home, you will need to supply additional documents before the application form can be completed. These documents will confirm the level of financing you request.

The documents required for home construction are the same as for purchasing a home, in addition to the following:

  1. Approved building plans.
  2. A detailed Builder's estimate.
  3. A Quantity Surveyor's report.
  4. A building contract (if applicable).
  5. The full name and address of the Builder's bankers, as well as two written references on the Builder.
  6. Projected Valuation Report.

Upon completion of the building, a Completion Certificate from the Local Government Authority and an Electrical Inspection Certificate from T&TEC will be required.



Purchasing a Townhouse/ Condomonium

If you are purchasing a townhouse or a condominium, you will need to provide the same documents required for purchasing a home, as well as the following:

  1. Articles of Association of the Administrative Company.
  2. A copy of the blanket homeowners' insurance policy issued in the name of the administrative company (if applicable).
  3. If the unit is being purchased from the developers, the agreement must contain details of all applicable maintenance charges.
  4. If the unit is being purchased from an existing owner, written confirmation of all applicable maintenance fees and evidence that the fees are not in arrears. You must also provide a copy of the last receipt of payment.
  5. A copy of the share certificate pertaining to the unit. The original certificate must be produced to the Attorneys when the purchase is being concluded.

Insurance is also required at this stage to protect the borrower's family and the premises. All the plans are available under Republic Bank's affordable Group Plan.

Life Insurance Coverage
Life insurance coverage gives you the peace of mind that if you (the borrower) were to unfortunately pass away; your family will not have to bear the burden of the mortgage instalments or even move out of the premises. The insurance will cover the outstanding balance of the mortgage loan.



Comprehensive Insurance Coverage
Insurance coverage on the property provides protection against the threat of fire and other risks on your home. It is taken for the amount recommended in the valuation report.



Mortgage Indemnity Insurance
Republic Bank's normal lending criterion is 80% of the lower of cost or market value, however up to 90% financing is also available. Mortgage Indemnity Insurance is insurance required when the loan amount required is in excess of the 80%. This insurance is available up to a value of $100,000. Instead of paying for Mortgage Indemnity Insurance, you can use other security e.g. equity in another property, cash/investments; to cover the "excess" requested over 80%.



Mortgage Instalment Protection (optional)

  1. Pays your mortgage and mortgage-related expenses should you become temporarily disabled due to accident or sickness which results in a loss of income; or
  2. Pays off the outstanding balance on your mortgage loan if you become permanently totally disabled; or
  3. Waives the premiums due for up to one year for the above benefits if you become unemployed due to redundancy or retrenchment.

Legal Requirements

Upon your acceptance of the Letter of Offer, an attorney will then be assigned to:


  1. Carry out necessary searches to the title of the property.
  2. Prepare legal documentation.
  3. Disburse funds.

Searches
A search will be conducted at the Land Registry to determine that the prospective property is free of all encumbrances. A search of the Judgments Register will also be conducted on the vendor (if applicable) and on the borrower to ensure that there are no judgments against either party.


Legal Documents
A Deed of Conveyance is prepared by your attorney, or by Republic Bank's attorneys at your request, to transfer ownership, once the property is deemed transferable.



Cost Required

Along with the documents and insurances required at this stage, there are some other costs that you will be required to cover. You can see the Summary of Costs table as well as the Mortgage Costs example. The costs to cover at this stage are:-

Downpayment
A normal downpayment is 20% to 25% of the selling price of the house or land; however a minimum of 10% may be accepted, subject to the discretion of Republic Bank. It is important to note that the Bank will finance 90% of the lower of the cost or market value of the property. In the instances where the market value is less that the cost of the property you will have to pay more than 10% of the cost of the property.

Valuation Report Fee
Most of the valuators have a table of fees with varying percentages charged for different ranges of property values. Although the cost differs among different valuators, a general estimate for the valuator report cost is ¼ of 1% of the market value of the property.

Handling Fee
Upon signing and accepting the Letter of Offer you are required to pay the low handling fee of 1% of the mortgage value, which is the Bank's processing charge



Deed of Conveyance costs
To determine these costs you will need to first establish whether the property that you are purchasing has a deed that is R.P.O (Real Property Ordinance) or Old Law. You can get this information from your vendor.

Lawyers use a standard schedule of fees to calculate the cost for the Deed of Conveyance which is made up of -attorney fees, stamp duty and search fees (See summary of costs).

Deed of Mortgages costs (downpayment)
A Deed of Mortgage will be prepared by the Bank's attorneys outlining the terms and conditions of the mortgage. You will be required to make a deposit of $2000 towards the preparation of this Deed upon acceptance of the Letter of Offer, and the full balance at the disbursement stage. The charges associated with this deed are based on the mortgage value and like the Deed of Conveyance are made up of attorney fees, stamp duty and search fees.


Tips on document collection and cost saving

  1. The search to be conducted on the Deed can be a lengthy process so we suggest that you obtain your purchase agreement and title document and submit these as soon as possible to your Sales Officer so that the searches can commence while you gather the other documents.
  2. You will need the up-to-date receipts for the land and building taxes and WASA rates in order to get your WASA Clearance Certificate. So gather these before going to WASA's office.
  3. Determine from the seller of the property whether they got their valuation from one of the Valuators on our panel. If this valuation was prepared within 12 months of the application you will not have to get another report, which saves you hassle and costs.
  4. Although you have the option of using your own attorney to prepare the Deed of Conveyance you can save money if you use one of the Bank's attorneys for both the Deed of Conveyance and the Deed of Mortgage. With the same attorney you will only have to pay 50% of the attorney fees for the Deed of Mortgage and you will only have to pay the search fee once.

Stage 3
Disbursement Stage

Purchasing your home/land
At this stage you must have already provided all the documents, insurances and obtained the Deed of Conveyance. To draw down on your loan you are required to sign the Deed of Mortgage. The attorney/s will be paid by you for his/their services as well as for any stamp duty that may apply to the two Deeds. These legal documents will then be stamped by the Board of Inland Revenue.


Documents required (after disbursement)

Land and Building Register

The attorney who prepared your Deed of Conveyance or Lease, as applicable, will provide a Return of Ownership which must be taken to the District Revenue Office for recording the transfer of ownership in the Land and Building Register. A number is allocated by the District Revenue Office, which must be quoted when future land/building taxes are being paid.


Utilities

The District Revenue Officer will then provide you with a form to take to WASA to have an account opened in your name.

In the case of T&TEC, in order to obtain a transfer of the electrical supply in your name on an existing building, the following must be provided:

  1. Valid ID (passport, driver's permit or national identification card).
  2. Correct address of property.
  3. Proof of ownership, i.e. title deed.
  4. Letter from an attorney or mortgage company verifying transfer/purchase of property.
  5. Meter number and current reading.

Building your home

If the Bank is providing construction or bridging finance, our officials will visit your site at intervals to monitor that the construction is progressing in line with the funds spent and in accordance with the approved building plans.


Documents required

Completion Certificate

When the construction phase is complete, an application must be made to the Local Government Authority for a Completion Certificate. This Certificate confirms that the building has been completed to the building plans that were approved in the initial application to the Town and Country Planning Division and Local Government Authority. An Electrical Inspection Certificate must also be submitted. A reinspection Valuation Report may be required as well.



Costs required

Site Visit Fee

A fee of $150- $200 is payable for each site visit conducted by Bank officials.




FAQ's & Glossary


A.

These documents are necessary so that the attorneys can verify that there are no encumbrances against the property by WASA. The Bank cannot disburse the funds without this verification.

A.

A Preferential Rate Mortgage is a mortgage facility for the purchase or construction of a first home, strictly for owner-occupancy. The interest rate payable on a PRM is lower than market rates; however, the value of the property cannot exceed $450,000 to enjoy the preferential rates.

A.

Subject to a few basic conditions, mortgages are granted on virtually any type of house, except those located on rented land.

A.

Each installment paid consists of both principal and interest. Each payment splits to pay interest due for the period (month) and the difference applied to reduce the principal.  In this instance there is no compounding or capitalizing.

A.

The maximum number of years for the mortgage loan can be up to 30 years or the number of years left until your retirement age - age 60, whichever is less. Persons who can show proof of income beyond the age of 60 can access mortgages up to 30 years or until age 75, whichever is less.

A.

Our normal lending criterion is up to 80% of the lower of cost or value. However, up to 90% financing is available with Mortgage Indemnity Insurance.

Factors such as the geographical location of the property can influence the level of financing being offered.

A.

Up to 75% of the lower of cost or market value of the land can be borrowed.

A.

Of course, we can lend you money to renovate your kitchen, install cupboards or conduct structural work. This is subject to the total loan value not exceeding 90% and provided that Mortgage Indemnity Insurance is available for the amount in excess of 80% of the value of the property.
Amortisation This is loan repayment by equal periodic instalments including accrued interest on the outstanding balances, calculated to pay off the debt at the end of a fixed period.
Borrower One who applies for and receives a loan in the form of a mortgage.
Bridge financing/ construction loan Financing for constructing a home.
Building permit A certificate that must be obtained by the property owner or contractor before a building can be constructed or extended. This can be obtained at the City or Regional Corporation overseeing the area where the property is located.
Certificate of completion Confirmation that the building has been completed to the construction standards that were approved in the initial application to the local Government Authority. This can be obtained at the City or Regional Corporation overseeing the area where the property is located.
Closing date Date when the purchase is final and you take ownership of the property.
Closing/settlement Meeting between the lender, the buyer and seller or their agents where the property title and funds legally change hands.
Credit report A report documenting the credit history and current status of a borrower's credit status
Default Failure to meet legal obligations in a contract or mortgage payments.
Downpayment This is the deposit you must make up front to the vendor or vendor's agent toward the purchase of your home, thereby reducing the amount of the purchase price.
Debt Servicing Ratio This ratio is calculated by dividing your mortgage loan instalment (plus any other loan instalments) by your gross monthly basic salary or GMBS (i.e. your monthly salary before tax and other deductions).
Equity The difference between the market value of the property and the debt, secured by the property.
Freehold title Indefinite ownership of property.
Foreclosure A legal process by which lender or seller forces a sale of a mortgaged property because the borrower has not met the obligations of the mortgage.
Gross monthly basic salary (GMBS) The borrower's monthly basic salary before tax and other deductions.
Holdback An amount of money withheld by the lender during construction to ensure that the work is progressing as planned at every stage.
Interest rate The rate of interest payable at the outset will be the rate in force at the time the loan is advanced. From time to time this may be varied (upward or downward) with three (3) months' notice in writing being given by Republic Bank.
Leasehold title Ownership for a stated period of time.
Market value The highest price that a buyer will pay and the lowest price a seller will accept on a property.
Mortgage loan A loan given to purchase real estate.
Mortgagee The lender.
Principal The amount of debt excluding interest left on a loan.
Valuation report An estimate of the value of the property, made by a qualified professional valuer.
Real Property Ordinance (R.P.O) & Old law title Old law titles were given in the past where new deeds were supplied when title was transferred. R.P.O. title replaced old law title where only a stamp at the back of the deed is required when title is transferred.



Valuators & Lawyers

Here's a list of our valuators and lawyers

Panel of Valuators Panel of Lawyers
Raymond & Pierre Ltd. J.D. Sellier & Co.
Linden Scott & Associates Ltd. Pollonais Blanc, de la Bastide & Jacelon
Brent Augustus & Associates Ltd. Hobsons
G.A. Farrel & Associates Lex Caribbean
Terra Caribbean J.B. Kelshall
Ray Pierre Daltons
Mervyn Thompson RC Chadeesingh
D.W.H. Knott (Tobago)
Charles B. Lawrence & Associates
Deloitte & Touche Real Estate Services
BCQS International Limited


Costs

Mortgage applicants sometimes underestimate the costs that they must cover themselves. Therefore Republic Bank will like to provide you with the following information which should help you better prepare for your mortgage expenses.


Mortgage related costs Calculation When Due
Down Payment 10%- 20% & over the cost of property 25% & over the cost of land Upon signing of vendor's sale agreement and before the Bank presents you with the Letter of Offer
Valuation report cost ¼ of 1% the market value. Before the Bank can disburse financing
Handling Fee 1.0% of the mortgage value Upon acceptance of the Letter of Offer
Mortgage Indemnity Insurance(Charged when financing property over 80%) (% financing) x lower of cost & market value
minus
80% x lower of cost & market value Result x 11%
plus
6% tax
Upon acceptance of the Letter of Offer
Deed of Conveyance costs Fees + Vat rough averages)(1.2% market value Old law; 0.8%, market value R.P.O)
plus
Stamp Duty (no exemption for land purchases) (Nil under $450,000, 5% $450,001-550,000, 7.5% $550,001-650,000, 10% 650,001 and above)
plus
Search Title (average) $1,000
Due before disbursement of loan
Group Life Insurance Ranges from $0.12-$0.95 per $1000 of mortgage value 3 months premium due after acceptance of Letter of Offer, before loan can be disbursed
Group Fire Insurance $3 per $1000 + 6% tax After acceptance of Letter of Offer, before loan can be disbursed
Deed of Mortgage costs Fees + Vat
rough averages
(1.2% Mortgage value Old law; 0.8% Mortgage value R.P.O )
plus
Stamp Duty (no exemption for land purchases) (Exempt up to $315,000, thereafter 0.2% NB if you already own a mortgage and you are refinancing the charge will be 0.4%)
plus
Search Title (average) $1,000
$2,000 down payment due upon acceptance of the Letter of Offer and remainder due on draw down date
*Qualifying income based on a 25 year term, 40% DSR and 8.75% interest rate
Cost of Property $600, 000 Qualifying Income*
$11,097

Instalment
$4,439
Market Value $600, 000
Financing 90%
Mortgage Value $540, 000
Land Value $200, 000
House Value $400, 000
Downpayment
10% 60,000
Handling Fee
1% 2,700
Valuation Report Fee
0.0025 1,500
Deed of Compliance
Old Law 7,200
R.P.O. 4,800
Stamp Duty 8,750
Search Title 1000
Morgage Indemnity
11% 6,600
6% 386 6996
Life Insurance
Worst case Scenario
0.00095 1.539
Fire Insurance
0.003 1,200
6% 72 1,272
Mortgage Deed
Old Law 6,480
R.P.O. 4,320
Stamp Duty 1,080
Search Title 1,000
% of Cost of property
17% Old law 99,517
16% R.P.O. 94,957
If both deed performed by same lawyer
16% Old law 95,277
15% R.P.O. 91,797
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Contact Us

To learn more about our mortgage offering please:

  • Call us at 625-4411
  • Visit us at any of our 41 conveniently located lending branches
  • Call one of our Business Development Officers
Business Development Officers
Jeevan Boodoo (East & Central)- Tel: +1(868)-735-0369
Arlene Lee Kong-Garcia (North & West)- Tel: +1(868)-741-7508
Rachel Woodcock (South) - Tel: +1(868)-741-7513
For a detailed list of all our branch locations click here.