We fund up to 100% of the construction cost.


Purpose/Use of Funds:

• Construction of new houses on land owned by the sponsors, or on land leased by them for a period in excess of the life of the loan, and intended to be used as a residence for him/her or family.

• Renovation (improvement) or extension of existing residential


• Purchase of existing house for use as a residence for the sponsor or family.

• Purchase of land and construction of house for residential purposes.

• In such cases the loan could be used to purchase not more than

half (½) an acre of land intended to be used for building a residential

home. It can be more than one lot but they must be adjacent to each other so

that there should be no other lot or road separating them. If the customer

does not commence construction after 10 years from the purchase of the land,

the interest rate will be increased to the market rate for commercial loans.

• Furnish newly constructed or renovated house funded by the GDB.

Loan Limit:

• Maximum loan – $400K or as specified by the funding source whichever is less.

• The maximum loan can be given with 100% financing, but subjected to once we can obtain our loan to value ratio.

Maximum Repayment Term:

• Repayment period – maximum of 25 years or up to retirement age whichever comes first for the purchase or construction of houses.

• 15 years or up to retirement age with respect to improvement of existing houses.

• 15 years for purchase of land for future construction of house.


• Affordability will be determined based on the income of the applicant(s).

• As a general rule loan repayment should not exceed 45% of the gross income of the applicant(s). The approving authority however will be allowed to exercise a discretion based on the particular circumstance.


All loans must be fully secured. Security can comprise any of the following or a combination:

• A first legal mortgage on the property to be purchased and or developed.

• Fire and other perils insurance to coverage the full insurable value of the property.

• Assignment of insurance on the life of the borrower(s) with a minimum face value equivalent to the loan amount. Insurance can be individual whole of life or term.

In addition the GDB allows for student loan recipients of the bank who wish to obtain financing for any of the purpose outlined above, have their student loan consolidated with the new borrowings and the consolidated loan amortized over the maximum available term. In such cases the interest charged will be the weighted average of the rate on the existing student loan and the rate of the new borrowing.