BVI News

National Bank offering locals 100% loan financing on land for up to 15 years

The National Bank of the Virgin Islands (NBVI) is offering locals 100 percent loan financing for land purchases within the territory.

The National Bank said the initiative is geared towards making it easier for likely land owners to capitalize on government’s stamp duty tax exemption period for locals.

Chief Executive Officer of NBVI, Joy Penn said the campaign will allow financing for terms up to a maximum of 15 years, which she urged locals to take advantage of.

“We believe that now, more than ever, customers need an opportunity to realize their dreams of becoming land owners,” she said.

“Loan candidates are examined regularly and oftentimes they are unable to meet the deposit requirements, but have sound repayment capacity. With this opportunity for 100 percent financing, we hope to make their land ownership and eventual home ownership goals become a reality,” Penn added.

Thousands of dollars to be saved in deposits

The CEO also explained that potential customers will be able to save thousands of dollars on deposits.

“If someone wanted to buy a piece of land for $50,000, their normal deposit requirement towards the purchase would have been $5,000 (10 percent). Additionally, they would have been required to pay another $2,000 (four percent) in government Stamp Duty on the transfer (if the land was also appraised at $50,000),” Penn stated.

“So right away you see savings of $7,000 on that transaction under NBVI’s current land loan campaign. I am optimistic that persons will find raw land available for sale. I strongly encourage you to embrace this opportunity to own your piece of paradise today,” she added.

The National Bank also revealed that successful applicants will have their names entered into a draw for a $500 savings deposit at the bank.

Stamp duty waiver

Meanwhile, Cabinet made the decision to waive taxes on stamp duty from May 2020, to May 2021, as part of the Andrew Fahie administration’s economic stimulus plan.

Premier Fahie, however, warned locals taking advantage of the waiver that they must not resell the property acquired to a non-local until the end of a seven-year period.

Should a sale or transfer occur within the aforementioned period, the land owner will have to reimburse the government for fees that were previously waived.

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13 Comments

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  1. CEO Need to Go back to School says:

    Not requiring a down payment is not saving anyone money. All it means is the borrower has to borrow more. He now needs to borrow 50k to buy that land instead of 45k. When you add interest the borrower will pay on that additional 5k borrowed he is spending more money! This bank CEO is Strups.

    Like 11
    Dislike 7
    • Kingfish says:

      I am positive that you can take advantage of the offer using a down payment. The good news is for those who cannot afford a down payment the opportunity is there to use the 100% financing, yes it will cost you more over the term of the loan,that is the price some people have to pay.

      Like 13
    • Nonsense says:

      You are a HATER!!!! The point is that the end result will be land ownership and that person that doesn’t have $7K at their disposal now have a chance to own property, even if it means paying the interest on that additional $7K over time. I really hope our young people take advantage of this offer.

      Like 13
      Dislike 1
  2. Maduro says:

    It no easy get through with development bank.2018 I try get a car loan with them but they never approve me. I try for piece land them turn me down You don’t get no where with them. And the management them s****s.No believe nothing them say. Them help friends in they.

    Like 4
    Dislike 3
  3. YOUTH says:

    I agree with our Premier that these banks MUST do better by the people.

  4. 2020 says:

    “The CEO also explained that potential customers will be able to save thousands of dollars on deposits.”

    NONSENSE!

    Lady, learn to articulate the message you want people to receive. Persons will save in reference to BVI Government stamp duty initiative. But explain to me how they will save on the deposits? If a person has no money to put down, how is that a saving? You mean to say they will benefit in not having to come up with the deposit if they do not have it. But they would not be saving on deposits. No? Secondly, if the person has the deposit plus is more or less financially stable, would it not be better if the person put down a deposit and pay lower cumulative total interest over the term of the loan given that the interest that person will receive from the bank on his deposit will be less than $1 annually? Afterall, the land will appreciate faster than any interest arising on money sitting in a deposit account the bank using to make 8+% in interest off of? No.

    Let us teach the people real financial management. These banks do not speak the full truth. All they want is to make money off those they think stupid. If you can afford to make a deposit then do so as long as you have all other financial matters set. If you do not have the deposit, you will pay more interest.

    Like 7
    Dislike 2
  5. LOL says:

    …If someone WHO HAS THE DEPOSIT and now do not have to PAY THE DEPOSIT, they realize a SAVINGS ON THE DEPOSIT! Wow, you cannot make this stuff up!!!! You are so hellbent on trying to destroy the individual that you talk even more s**t than you are trying to put on her. In cash flow terms especially in this era, she is right that it’s a savings as you have the cash available.

    Like 2
    Dislike 3
  6. the question is... says:

    at what interest rate?

  7. Nice says:

    When so many people out of work

  8. Rubber Duck says:

    There is no mention of the rate of interest. The fact is people in BVI are ripped of by the banks on every rate of interest from home loans to credit card charges. Home loan rates in UK and USA are down at the 1-1.5% level. What are they in BVI?

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