First Global Bank (FGB) is now offering a 1 per cent mortgage deposit for all potential mortgagors, as it focuses on innovation and providing tailored mortgage products by leveraging data and research.

The bank endeavours to change how Jamaicans view homeownership, and so has engaged in construction partnerships with local developers to offer mortgagors this low down payment. At present, potential homeowners can choose between two properties—SilverSun in Old Harbour and Chester Creek in Greater Portmore—developed by WIHCON Limited.

Traditionally, the initial deposit required for a mortgage would be between 5 per cent and 10 per cent of the total cost. However, FGB’s latest market move aims to help qualified borrowers improve their chances of homeownership with a lower upfront cost

Commenting on this new offering at a recent press briefing, Arlene Williams, vice-president, Personal and Business Banking at FGB, shared, “For many Jamaicans, the dream of homeownership has been paved with a primary obstacle the down payment. Rising property values, inflation, and stagnant wages have created a widening gap between property aspiration and reality. Now, you can own your home with FGB, starting with only 1 per cent of the total cost.”

The bank explained that this new offer will empower a new generation of homeowners who understand that having real estate is one means of building wealth. To this end, FGB outlined that its mission is to accelerate the typical Jamaican’s journey from renter to owner.

Responding to a customer challenge

“In today’s economic climate, where every dollar is stretched, saving a 10 per cent to 20 per cent deposit to secure a mortgage can often take years, sometimes decades. We’re reducing the time that it takes to get you what you need—the home of your dreams at a faster, more affordable rate,” Williams explained.

FGB, the banking arm of the GraceKennedy Financial Group (GKFG), has positioned the product to disrupt the market at a time of key structural changes in Jamaica’s economy. With the recently announced interest rate reductions by the Bank of Jamaica (BOJ), and the new National Housing Trust (NHT) loan ceiling increase now in effect, Williams pointed out the ease with which potential homeowners can find properties and realise the long-term value in real estate.

“Investing in real estate is an often misunderstood yet attainable goal that most Jamaicans can achieve, believe it or not. Once you see the return on investment with a property, any homeowner realises and values the property as an appreciating asset; so, the time to invest in real estate was yesterday,” the FGB vice-president shared.

She further stressed that while the 1 per cent down payment significantly eases the burden, interested persons will still need to cover other closing costs, such as legal fees, stamp duty, and other administrative charges. To this end, she advised how potential homeowners can strategically source funding to complete the purchase of their new home as quickly as possible.

“Think of it this way: you can source it from us directly or you can use other financial tools such as partner draws, utilising your employer’s benefits, and credit unions,” Williams explained.

Furthermore, the banker also encourages its clients and other prospective homeowners to engage with the bank’s officers in open discussions.

“Qualified buyers can safely move from mere hoping to house keys in a matter of weeks, not months, with FGB,” the mortgage expert reasoned.

A full-service approach

For FGB, this 1 per cent down payment programme is more than a loan, as the bank works closely with applicants by combining the offer with strategic financial planning and a proactive approach to achieve homeownership.

The take-up for the 1 per cent mortgage product, according to the bank, has been overwhelmingly positive given the demand for homes at Silver Sun and Chester Creek. As such, the FGB one per cent mortgage offer is valid until December 2025 or until all units are sold.