If you plan to buy a house, even if you are getting a loan to take care of the purchase price, there are some costs that you have to pay from your personal savings. You are most likely aware for example, that you must make a deposit to the vendor, and that if you are borrowing from the NHT your loan will not include that deposit. However, there are other charges that you should know about. Here are some of those charges to help you plan ahead.
The Deposit
If you are an NHT contributor who is buying a house on the open market you will have to make at least a 5 per cent deposit before applying for an NHT loan. But a seller may ask for a larger payment.
The Sales Agreement
The buyer pays half the cost for the sales agreement. The sales agreement is a contract between the buyer and the seller, which sets out the terms of the sale.
Closing Costs
These include charges for stamp duty and registration. These costs are shared equally between the buyer and the seller. The buyer is required to pay 2.25 per cent of the selling price for stamp duty. The registration fee is 0.5 per cent of the selling price. The buyer is responsible for paying half of this amount.
Attorney’s Fees
You may want to have an attorney to represent you when buying a house. Attorneys’ fees typically range from 1.5 to 2 per cent of the selling price.
Valuator’s Fees
If you will be borrowing from the NHT, you will also have to provide a valuator’s report and a surveyor’s ID report. You will have to bear the costs for these unless the seller has already done these reports and is willing to provide the copies. The NHT requires that the reports be less than one year old.
Processing Fees
Finally, if you are getting a loan from the NHT to help with your purchase, you will also have to pay a fee for processing the NHT mortgage. This fee covers administrative costs and the NHT’s legal fees. The NHT charges a five per cent service charge to all mortgage loans except for loans given at the two per cent interest rate. Persons who get their loans at the two per cent rate pay a two per cent service charge for processing the mortgage. The NHT’s service charge is included in the mortgage loan, so you won’t be asked to pay them up front.
If you need any further advice on buying your house, call or visit the NHT office nearest you. We would like to hear from you. Write to us at feedback@nht.gov.jm. You may also visit our website at: www.nht.gov.jm.
