Ashford W. Meikle, Staff Reporter
BRADY
THE BUILDING society subsidiary of FirstCaribbean International Bank (Jamaica) Limited (FCIBJ) is about to roll out a new mortgage product for overseas residents who wish to buy real estate in Jamaica, said FCIBJ's managing director, Milton Brady.
Speaking to Wednesday Business about the FirstCaribbean International Building Society's (FCIBS) future plans, Brady said, "The product we are probably most excited about ... is what we call international mortgages. That's hard currency mortgage financing for accessing properties in Jamaica."
He explained that the product is "geared mainly at foreign investors who are looking to acquire second homes, vacation homes in Jamaica or to make investments."
Not surprisingly, the building society is eyeing developments such as The Palmyra and Goldeneye.
"We're in active discussions with all of these major developers and the brokers - all the international brokers based in Jamaica. We [will] work with these developers in providing financing to buyers of these properties, which are not cheap. They are between US$500,000-US$3million."
REMARKABLE YEAR
The mortgages will be offered in the major currencies - euro, pound sterling, Canadian and United States dollars.
It has been a remarkable year for FirstCaribbean International Building Society. While it is the smallest player in the industry, FCIBS has been the fastest growing building society over the past year.
According to figures from the Bank of Jamaica (BoJ) the mortgage lender grew by some 67 per cent over the one-year period up to September 2005 - well ahead the industry average of 26.5 per cent. The central bank's figures also point to an increased percentage of the market. For example, as at September 2004 it controlled 4.5 per cent of the mortgage market. A year later this had increased to six per cent.
The international mortgage product, while a novel concept, is offered in other Caribbean territories where FirstCaribbean operates. "It's natural for us because we do this in ... other countries - Barbados, the Bahamas, Cayman, the Turks and Caicos - all around the Caribbean. So Jamaica is now the latest country in which we are rolling it out."
The interest rate, which Brady says is "highly competitive ... comparable to what is offered in the rest of the Caribbean," will be around eight to nine per cent.
