Home Buying & Mortgages in Jamaica
Your comprehensive guide to mortgages, NHT contributions, closing costs, and becoming a homeowner in Jamaica.
In This Guide
Understanding Mortgages
A mortgage is a long-term loan used to purchase property. In Jamaica, mortgages typically run for 20-40 years, with the property serving as collateral until the loan is fully repaid.
Variable Rate Mortgages
Most common in Jamaica. The interest rate can change based on market conditions, meaning your monthly payment may fluctuate over time.
Current rates: 6.9% - 10.75%
Fixed Rate Mortgages
Less common but offers stability. Your rate is locked for a set period (e.g., 5 years), protecting you from rate increases.
Usually 0.5-1% higher than variable
Property Types
Residential
Best rates available
Commercial
Higher rates, shorter terms
Land
Larger down payment
Construction
Staged disbursements
Current Market Rates (December 2025)
JMMB
6.9%
VM Building Society
7.95%
NCB
8.25%
National Housing Trust (NHT)
The NHT is a game-changer for Jamaican homebuyers. If you've been contributing, you may qualify for below-market interest rates that can save you millions over the life of your mortgage.
How NHT Contributions Work
Employed Jamaicans contribute 2% of their gross salary to the NHT, while employers contribute 3%. After contributing for a minimum period, you become eligible for an NHT mortgage.
NHT Loan Benefits
- Interest rates as low as 2-6%
- Up to J$6.5 million loan amount
- Can be combined with bank mortgage (joint financing)
- Refund of contributions if unused
Eligibility Requirements
- Minimum 52 weeks of contributions
- 13 contributions in last 26 weeks
- First-time homebuyer (for certain benefits)
- Must be employed at time of application
Joint Financing Explained
Since NHT has a maximum loan limit, most homebuyers use joint financing - combining an NHT loan with a commercial bank mortgage. For example:
Property Price: J$20,000,000
NHT Contribution: J$6,500,000 @ 4%
Bank Mortgage: J$11,500,000 @ 7.95%
Down Payment: J$2,000,000 (10%)
The blended effective rate is lower than a 100% bank mortgage!
Understanding Closing Costs
Don't Forget Closing Costs!
Beyond your down payment, expect to pay 8-12% of the property value in closing costs. Budget for this in advance to avoid surprises.
| Fee Type | Typical Cost | Notes |
|---|---|---|
| Stamp Duty | 4% of property value | Government tax on property transfer |
| Transfer Tax | 2% of property value | Paid by seller (may be negotiated) |
| Legal Fees | J$50,000 - J$150,000+ | Attorney fees for conveyancing |
| Valuation/Appraisal | J$20,000 - J$35,000 | Required by lender |
| Origination Fee | 1% - 1.5% of loan | Bank processing fee |
| Registration Fee | ~J$8,000 | Title registration |
| Property Insurance | Varies | Required - covers fire, hurricane, etc. |
Example: Closing Costs for J$15M Property
Stamp Duty (4%): J$600,000
Legal Fees: ~J$80,000
Valuation: ~J$25,000
Origination (1%): ~J$135,000
Registration: ~J$8,000
Total: ~J$850,000+
Home Buying Tips
Start NHT Contributions Early
Even if you're not planning to buy soon, contribute to NHT. The longer you contribute, the more you accumulate for your eventual home purchase.
Get Pre-Approved Before House Hunting
Know exactly how much you can borrow before falling in love with a property. Pre-approval also shows sellers you're a serious buyer.
Budget for All Costs
Beyond down payment and closing costs, budget for: moving expenses, immediate repairs, furniture, appliances, and a reserve fund for emergencies.
Consider Location Carefully
Look at commute times, school districts, neighborhood safety, and future development plans. A cheaper property in a bad location can cost more in the long run.
Don't Skip the Inspection
Always get a professional property inspection before purchase. Hidden issues like water damage, termites, or structural problems can cost millions to repair.
Ready to Calculate Your Mortgage?
See monthly payments and compare rates across Jamaican lenders.
Important Disclaimer
The calculations and information provided on this website are for educational and informational purposes only and do not constitute financial, legal, or professional advice.
- Results are estimates based on the information you provide
- Actual loan terms may vary based on your credit profile and bank policies
- Interest rates are subject to change without notice
- Always consult with a licensed financial advisor before making financial decisions