This mortgage loan will be offered under the following criteria:
Eligibility Requirements
• Government Contract Workers continuously employed for a minimum of 3 years;
• With a debt service ratio (DSR) of up to 50%.
Use of Funds
• The purchase or construction of a dwelling house (including furnishings, fixtures and fittings, appliances etc.)
• The purchase of land for future home construction
• Upgrades to existing freehold property e.g. renovations, building a downstairs, adding rooms or bathrooms etc where a first legal mortgage can be obtained including climate change adaptation and mitigation initiatives such as solar water heaters, PV systems, water tanks and pumps etc.
• Legal fees and property insurance payments- (There will be a 50% reduction on legal fees for 6 months), bank charges- (there will be 100% waiver on bank charges for 6 months).
Financing Terms
• The maximum amount that can be accessed per applicant is EC$375,000 at an interest rate of 3% per annum.
• The fund would provide up to 100% financing.
• Moratoria on principal or principal and interest can be obtained for up to one year. The repayment period would be up to retirement age of the borrower or for a period of 30 years whichever is less
• If the borrower becomes unemployed due to the redundancy of the contracted position or for similar reasons that are not performance related, the accrual of interest would be suspended for a period of up to 12 months or until gainful employment is obtained (whichever comes first). This would prevent the loan from growing during that period due to the accumulation of outstanding interest.
Security and Collateral
• First Legal Mortgage on the property to be purchased or constructed.
• Property insurance on the replacement value of the property for the duration of the loan
• Life insurance on the life of the borrower for no less than the amount of the loan
• Any other security that might be deemed acceptable by the Ministry of Finance.
Application Process
Applications will be submitted by potential beneficiaries to the Grenada Development Bank and loans will be considered based on the Government’s established credit policy and approval limits.
Applicants would be required to provide the following:
• Completed application and financial declaration forms
• Recent job letter and payslip from the relevant Government ministry, department or agency
• Sale agreement where applicable
• A recent property valuation is to be performed by Government approved valuators
• Construction estimates according to Government approved terms and conditions
• Two copies of identification
• Approved construction plan where applicable.