Ashford W. Meikle, Staff ReporterA MONTH after it was first disclosed by this newspaper, FirstCaribbean International Building Society (FCIBS) officially launched its international hard currency mortgage product on Wednesday at the Knutsford Court Hotel in New Kingston.
The product is geared mainly at foreign national and non-national investors who want to acquire real estate in Jamaica.
It is geared towards high net worth individuals as evidenced by the building society's partnership with the developers of the Palmyra and Goldeneye. FirstCaribbean's strategy is to provide financing to buyers in these developments where property prices range from US$500,000 up to US$3 million.
In introducing the product the general manger of FCIBS, Lenworth Tracey, noted that the product is more than just another revenue stream for the FirstCaribbean group.
"Our passion around what we do here today is bolstered not only by what this will mean to FirstCaribbean as a business ... but, very significantly, by what it will mean to the economy of Jamaica and for the lifestyle and investment opportunities it will support for both Jamaican nationals and the nationals of other countries."
Tracey emphasised that FCIBS aimed to be a serious competitor in Jamaica. "FirstCaribbean is a dominant player in the provision of mortgage financing throughout the Caribbean. FirstCaribbean Building Society is now geared to be the dominant player in the provision of mortgage financing in the local market."
MORTGAGE PORTFOLIO
Between September 2004 and September 2005 FirstCaribbean International Building Society's mortgage portfolio grew by some 67 per cent compared to the industry average of 27 per cent. In fact, the building society now controls some six per cent of the mortgage market compared to the four per cent share it held a year ago.
The hard currency mortgage product will be offered in the major currencies - U.S. dollar, pound sterling, euro and the Canadian dollar.
The building society says that it will lend up to 90 per cent of the purchase price, valuation or construction cost of the property - whichever is lower - with mortgages running for up to 30 years.
For property construction the building society is willing to lend 50 per cent.
The rates which the bank says is competitive will be linked to the three-month U.S. dollar LIBOR rate plus 3.75 per cent for the first six months, up to June this year.
While the product is new to Jamaica, the bank has already offered similar product in the Cayman Islands, Barbados, the Bahamas, the British Virgin Islands and the Turks and Caicos Islands.
In his remarks to the audience, managing director of FirstCaribbean Bank, Milton Brady noted that the bank's operating platform and culture is in congress with the CSME. "FirstCaribbean has been at the forefront and we are helping to make the CSME a reality. We know firsthand what it means to create one entity that spans the region."
The guest speaker at the function was the Minister of Finance, Dr. Omar Davies, who challenged financial institutions to provide affordable mortgages for working-class Jamaicans.
TAKEN FROM THE FINANCIAL GLEANER, FRIDAY, JANUARY 27, 2006
