H.O.M.E by COK
FREQUENTLY ASKED QUESTIONS
According to the Ministry of Water and Housing there is an effective demand for 15,000 housing units annually. With the current reduction in fees among several mortgage providers and with the cessation of charges when transferring mortgages between financial institutions more consumers are entering the market with the hope of becoming home owners.
As COK Sodality continues to respond to the needs of our membership, in fulfillment of our commitment to enhance their well-being, we are now pleased to announce our entry into the mortgage market through our HOME by COK Mortgage product.
The name is an acronym for HOME OWNERSHIP MADE EASY by COK.
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Below are 10 questions that you may have with regard to this new offer:
1. WHAT CAN THE HOME-BY-COK LOAN BE USED FOR?
The loan can be used for the purchase of a residential home or the renovation of an existing residential property. The product is also for first time homeowners, young professionals and solid loans from other institutions where existing mortgagees wish to refinance/ transfer their obligations to COK.
The facility excludes home equity financing, as well as, excludes the transfer of such loans from other institutions; however an existing mortgage from another financial institution can be transferred to the HOME-by-COK Mortgage Plan.
2. WHAT IS THE LOAN’S MAXIMUM TENURE
The loan can be held for a maximum of 25 years.
3. IS THERE A MAXIMUM AMOUNT? Yes, the maximum amount for which a member can be approved is $25 Million, but can be higher on a case by case basis subject to affordability by the borrower.
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4. WHAT IS THE APPLIED INTEREST RATE?
Well the interest rate offered on the mortgage product may be as low as 10% .
The 10% is offered to those existing members who have been actively saving with us and have achieved the minimum % of the loan amount in his/her savings. However if the new member deposits the minimum % of the loan amount in his or her savings, then he or she will qualify for the 10% interest rate.
For young professionals, an adjustable rate is applicable after a specific period.
5. WHAT ARE THE FEES APPLICABLE TO THIS LOAN?
This loan attracts the combined Commitment/Processing/Legal fees of between 2.5% to 4% of the loan amount.
6. WILL THE HOME-BY-COK MORTGAGE PLAN COVER 100% OF THE COST OF THE PROPERTY BEING PURCHASED?
No. The HOME-by-COK Mortgage Plan offers 90% financing. Please note that this is 90% of the market value of the home or the sale price of the property (whichever is lower).
7. GIVEN QUESTION 6, WHAT THEN IS THE AMOUNT THAT I MUST HAVE IN MY SHARES TO QUALIFY FOR THE LOAN?
The share requirement, or the amount that the members must have in his/her shares, ranges from a low of 1% to a high of 4.5% of the loan amount.
8. WHAT IS THE MONTHLY SHARE CONTRIBUTION?
The amount that members, with a HOME-by-COK loan, are required to contribute monthly to their share account is $5,000.00.
9. IS THIS MONTHLY SHARE CONTRIBUTION COMPULSORY?
This is a condition of the loan facility and is a required mandatory monthly payment, which will attract penalties if not paid.
10. IS THERE ANY ARRANGEMENT FOR PROPERTY INSURANCE?
Yes. Please note though that the member will have to settle the first year’s property insurance upfront, which can be accommodated through the Credit Union’s premium financing facility. COK will however include the property insurance charges, for the subsequent year, in the monthly loan amount; so that 1/10th of the annual property insurance will be collected monthly and paid over to the insurance company in the 12th month.
11. ARE CLOSING COSTS INCLUDED IN THE MORTGAGE? Closing costs are not included in the mortgage. However, consideration will be given on a case by case basis depending on the percentage funding required by the applicant.
12. WHEN WILL LOAN REPAYMENT BE DUE?
All loans have the same repayment date, which is the 30th of each month.