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Additional Information

Flexibility in your Mortgage Financing Package

Flexibility in your mortgage financing package is important. We at First Citizens give you the opportunity to repay your mortgage at your convenience be it monthly or fortnightly. You the purchaser must ask key questions as you seek to negotiate with your Banker the most flexible mortgage financing package to suit your needs.

Firstly - Can you make lumpsum payments towards your mortgage loan?

We at First Citizens will allow two (2) lumpsum payments per calendar year, to be made towards your mortgage loan provided one month’s written notice is given. Such lumpsum payments would be applied to the principal balance outstanding. At the time of making such payments you would need to advise your banker whether your intention is to alter the term of your mortgage or the monthly instalment. This option of making lumpsum payments can result in less interest being paid to the Bank over the life of your mortgage loan.

Secondly - Are there penalties for early liquidation of your mortgage loan?

At First Citizens there are no penalties for early liquidation of your mortgage loan once 3 months’ written notice is provided to the bank. This promotes the concept of having flexibility in your financing mortgage package.

Insurance to Protect my Property

There are essentially 4 types of insurance which can be considered:

a. Homeowner’s Comprehensive Policy- In the event of a loss e.g. fire this type of insurance will cover your investment in your property. Attractive rates are available through First Citizens Group Homeowners Plan.

b. Contractor’s All Risk Policy- This type of insurance provides coverage during the period of construction and will be elaborated upon in a subsequent programme when we look at what is involved should you wish to construct your own home.

c. Life Insurance- While life insurance is not mandatory in obtaining a mortgage loan it is often recommended to the purchaser that such insurance can protect his/her family’s interest in their home.

d. Mortgage Indemnity Insurance- This type of insurance covers the excess over 75% financing up to 90%. As such it allows you to access more financing to purchase your home.

Possible causes for Delays

1. Time taken for attorney to conduct the Title search

The length of time for the Title searches to be conducted on the property being purchased will vary depending on whether the title for the property falls under Common Law or under the provision of the Real Property Ordinance commonly referred to as RPO. Common Law and RPO therefore refer to Systems of Title governing ownership of property in Trinidad and Tobago.

A search of the title to the property under the RPO can usually be completed within 2 days. Ownership of RPO properties are evidenced by a Certificate of Title and locating this document can take up to 1 week.

With respect to searches of property governed by Common Law, the timeframe for completion of a Title search will depend on the Ward in which the property is located. An average title search may be completed within 10 working days. If title is found to be defective, this can delay the mortgage transaction.

Where there is a good root of title and no problems are encountered in completing the title search, delays in the mortgage transaction may occur for one or more of the following reasons:

2. An existing mortgage to be liquidated – the mortgage transaction can be delayed if there is an existing mortgage to be liquidated as such one must ensure that the release of the existing mortgage has been put in place.

3. A judgment is discovered - A judgment when revealed in the title searches is
obtained in the High Court of Justice and operates as a charge over the property of the person against whom it is registered. Hence if you purchase a property from someone with a judgment registered against the owner, the said judgment must be settled in full by the vendor/owner of the property so that you the purchaser can obtain clear title to the property.

4. A missing Certificate of Title.

5. A party to the transaction resides abroad.

6. A Lis Pendens is discovered when title searches are done which gives notice of a High Court Action that may affect the property.

7. The Land and Building taxes receipt is not in the name of the Vendor.

8. Death of a previous owner: depending on the manner of ownership, death of a previous owner might require the production of a Death Certificate or a Grant of Probate/Letters of Administration.

9. Unavailability of Completion documents: The unavailability of documents such as WASA clearance, up-to-date Land and Building Taxes receipts can delay the mortgage transaction. In the case of leasehold properties consent from the Lessor is required. In the case of a Leasehold Townhouse, the original Share Certificate and up-to-date receipts evidencing payment of maintenance fees must be obtained.

Delays may be avoided if the Borrower obtains all the documents necessary for completion of the mortgage transaction in a timely manner.