There is good news for mortgagors with Jamaica National Building Society (JNBS).
The entity has started a round of interest rate reductions on new and existing mortgage accounts.
Existing mortgages with rates of 15% and above have been cut by 0.25 percentage points effective May 1.
Wanica Purkiss, JNBS Mortgage Operations Executive, disclosed that other residential loans in good standing will see a reduction of one percentage point as of June 1.
The building society has already implemented a base lending rate of 13.5% for new mortgage loans as of April 4 down from 14.49%.
Mrs. Purkiss says there has been a reduction in the demand for mortgages over the past year due to a decline in persons’ disposable income and it’s expected that the cut in rates will help to reverse the fall-off.
The JNBS executive said last month’s reduction was the first in a round of adjustments.
Changes to previously contracted loans are to follow on a phased basis.
Jamaica National currently has more than 17,000 mortgage accounts on its books valued at a little over $38 billion.
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