First Global Bank (FGB) says it is ready to change how Jamaicans view homeownership by focusing on innovation and offering tailored mortgage products by leveraging data and research.

The bank is now offering a mortgage deposit of 1% for all potential mortgagors. The offer, however, is specific to established construction partnerships with local developers. Currently, potential homeowners can choose between two properties, SilverSun in Old Harbour and Chester Creek in Greater Portmore. Both properties are developed by Wihcon Developments.

Speaking 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% of the total cost.”

Traditionally, the initial deposit required for a mortgage would be between 5% and 10% of the total cost. In this latest market move, qualified borrowers now have an opportunity to get their homes at a lower price. Designed to empower a new generation who see owning their property as a wealth-building tool, the bank aims to accelerate the typical Jamaican’s journey from renter to owner.

A Market Response to A Customer Challenge

“In today’s economic climate, where every dollar is stretched, saving a 10–20% 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.”

For example, a typical JMD $35 million home, land or apartment will attract a JMD $3.5 million deposit upfront, a significant hurdle for most first-time buyers. With FGB’s new 1% offer, a potential homeowner would only need JMD $350,000, which drastically reduces the total upfront cost.

This new move from FGB, the banking arm of the GraceKennedy Financial Group (GKFG), comes at a critical time in the Jamaican economy. With the recently announced interest rate reductions by the central bank, Bank of Jamaica (BOJ), and the new National Housing Trust (NHT) loan ceiling increase now in effect, the mortgage expert encouraged potential homeowners to see 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,” said Williams.

Williams further stressed that while the 1% 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 and offered advice on how to strategically source the necessary funds to move into your new home as quickly as possible.

Williams added, “think of it this way, you can source it from us directly or you can use other financial tools such as partner draws, utilizing your employer’s benefits, credit union not only with your side hustle given the fact that we’re in a gig economy, but we’re open to discussions; qualified buyers can safely move from mere hoping to house keys in a matter of weeks, not months with FGB.”

This 1% down payment programme is more than a loan according to the bank; it’s a testament to a deliberate plan to help Jamaicans achieve the dream of homeownership. By combining this offering with strategic financial planning and a proactive approach, a dream home within your budget is closer than you think.

Given the current demand, FGB notes that take-up for the 1% mortgage product has been overwhelmingly positive. The FGB one per cent mortgage offer is valid until December 2025 or until all units are sold.