MORTGAGE NEWS

The Central Bank reported today (June 2, 2014) that the Mortgage Market Reference Rate remains unchanged at 2.25 percent in June 2014.

The report noted that the commercial banks and their affiliated non-bank financial institutions are expected to apply the MMRR plus a margin to all existing residential mortgage loans that are due to be re-priced as well as new mortgages granted from June 2, 2014.

The margin will be negotiated between the commercial bank and customer. The margin takes into account the customer’s credit rating, the location of the property, the size of the down payment and the size and quality of collateral. The next MMRR announcement is scheduled for September 1.

During his second Monetary Policy Forum in Tobago on May 27, the Central Bank Governor, Jwala Rambarran noted that "Record low mortgage rates continue to spur demand for real estate mortgage financing.


Although such loans continue to record double-digit growth to March 2014, and there has been an increase in property prices, there is no compelling evidence to suggest overheating in the residential property market. More importantly, commercial banks have maintained their prudent mortgage lending standards."

://www.central-bank.org.tt/pdf/Public%20Education%20Pamphlets/The%20Residential%20Mortgage%20Market%20in%20T&T.pdf