Is there really a “generation of life-time renters” emerging in St. Vincent and the Grenadines? The story is that for the average Vincentian, house prices are way too high, and the options available for a competitive mortgage are way too low. Notwithstanding the seemingly elusive nature of property ownership, there are creative ways to finance your property investment that may only require a greater bit of discipline, sacrifice and creativity. 

1. ResearchDo some research to get an idea of the listing prices of properties in the area/s you would like to live. If the prices seem too prohibitive, consider other locations that may not be on the top of your list, but offer great properties at lower prices. Do not overlook that house that seems dilapidated. You will be surprised at what a coat of paint can do!
2. Get Pre-Approved Make an appointment with your lending institution to receive pre-approval for your mortgage. Pre-approval will make your search a lot easier, since you will know from beforehand the property you may be able to afford. If your lending institution does not offer this feature, you may use an online mortgage calculator which will give you a general idea of what your monthly mortgage payment may look like. Shop around to get the best deals. Different institutions offer different rates. Also, there are a number of institutions that are offering mortgages aside from the traditional banks and credit unions. Just do some research.
3. Decide on the PropertyFind a property you wish to purchase. Be sure to arrange a site visit with the realtor/vendor. If you are purchasing a property, the site visit will help you determine if the property is in need of any repairs, or if it is ready for you to move in. If repairs are needed, ask the vendor if he is willing to reduce the price in light of the repairs needed. Again, do not overlook the fixer-upper property. With a splash of paint and a change of kitchen fixtures, the property can be as good as new. In fact, why not invite a quantity surveyor to attend the site visit with you so you can have a quick idea of what the repairs may cost. That fixer-upper may end up being your best option yet!4. Make an OfferThat’s it. Make an offer. Be sure to negotiate the purchase price, as many vendors make provision for this when they list a property for sale. Remember, an offer can be refused. If so, just make another offer! And don’t be afraid to NEGOTIATE.
5. Find a LawyerThe next step is to see your lawyer. This is an important step. The vendor will usually give you a sale agreement and this sale agreement is binding once you sign it. Therefore, you should meet with your lawyer so that she can review the sale agreement and advise you on whether the agreement is in order. From here on, your lawyer will work closely with you to ensure that you are properly advised.
6. Apply for the MortgageOnce your offer has been accepted, make an appointment to see your lender. Your lender will instruct you as to what documents you will need to complete the mortgage application. Usually, your lending institution will ask that you get a sale agreement, a copy of the property deed, a recent valuation of the property, land survey, bill of quantities (if you are requesting a mortgage to build your house), proof of employment, proof of address, among other things. Find out if property insurance is also a requirement. Don’t rule out the use of traditional and non-traditional lending sources. Just do some research and you will be surprised at what options may be available.
7. Closing the Deal 

Once your mortgage application is approved, your lending institution will notify you to come in and sign the documents. Your lending institution will give the mortgage money to your lawyer, and your lawyer will pay the vendor. Be sure to follow up with your lawyer to ensure that they register the deed in your name and give you a copy of the deed. The lending institution will also prepare a mortgage deed. Be sure to get a copy of that deed as well. 
There may be a few other things that will be necessary on closing day. Work closely with your lawyer to ensure that you are kept abreast at every stage. Finally, don’t forget to collect the keys to your new home!

Here are a few other things you may wish to consider: 

Deposit In most cases, your lending institution will give you a mortgage of 75% to 90% of the value of the property. You may be required to find the remaining sum. Also, a vendor may ask that you make a deposit (for example, 10% of the purchase price). Make sure you clear this up very early so that you can source the amounts required. Do you need to take a small loan to help with your deposit? Well, that may be an option. Or you could ask a family member or friend to lend you all or part of the deposit needed. Do you have insurance? You may be able to borrow from your insurance to contribute to your deposit. The point is, there are options available to you. Be creative!

Most importantly, you should think carefully about what you can afford, and do not be afraid to shop around. Again, different lending institutions have different requirements. 
Make Additional PaymentsMost institutions will not tell you that you can significantly reduce your interest payments and your overall loan amortization period (loan repayment period) if you make payments in addition to your regularly scheduled monthly payments.

Here is how this works: The longer your repayment period, the lower your scheduled mortgage payments will be, but the more interest you will pay in the long run. If you make an additional payment of EC$100.00 per month for the first five years, you may lessen your mortgage period by two years and reduce your interest payments by thousands of dollars! The more payments you make in a year, the lower the overall interest you have to pay on your mortgage.  

Interest RatesInterest rates may vary between lending institutions. Shop around to make sure that you are getting the best deal possible. 

While the process may generally be the same, different lending institutions may have different requirements. Be sure to make an appointment with your lending institution to discuss your specific situation. If you have questions that you would like answered, let us know. We will be happy to help you.
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Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with your lawyer. For specific technical or legal advice on the information provided and related topics, please contact Meisha Cruickshank. Meisha is a Barrister and Solicitor in St. Vincent and the Grenadines. She practices in the areas of Land and Property Law, Estate Planning and Family Law. You can reach her by phone at 784-451-5669 or email at meishacruickshank@gmail.com.