Mortgage

NBS Bank offers several mortgage facilities to help customers own property. The standard Mortgage facility allows you to purchase residential or commercial property, with options for owner-occupation or rental purposes . The Construction Mortgage finances the construction of residential and commercial property, and can also finance land purchase if you do not already own the land. This facility is also available for customers with unfinished structures who wish to complete them .

For the standard Mortgage facility, you can access up to 80 percent of the collateral value for owner-occupied properties . For the Construction Mortgage, the facility amount is determined based on the loan-to-value ratio, with similar parameters applying. In some mortgage products, the loan-to-value ratio is set at 70 percent of the collateral value . Your actual loan amount will be assessed based on your income, repayment capacity, and the value of the property being purchased or constructed.

Interest rates for mortgages are calculated as the Base Rate plus a Risk-Based margin . Different rates apply depending on the purpose of the property: owner-occupied properties use the Base Lending Rate, rental properties attract Base Rate plus 2.5 percent, commercial buildings are charged Base Rate plus 5 percent, and personal loans against mortgages carry Base Rate plus 7 percent . Processing fees include an arrangement fee of 2.5 percent of the loan amount for construction mortgages . Residential and commercial mortgage processing fees apply, along with disbursement fees. Additional charges may include title deed photocopy fees, mortgage loan statement fees, internal property valuation fees, and loan rescheduling fees if applicable . Mandatory insurance covers include Life Cover to protect the mortgage and Property Cover Insurance to insure the property against loss due to fire and other natural causes .

NBS Bank mortgages offer several key benefits. Property is insured against loss due to fire and other natural causes, providing peace of mind. The borrower's life is insured to protect the mortgage, with funds used to liquidate or reduce the loan amount upon the death of the borrower. The mortgage can also be used to build a new house or make home improvements. For construction mortgages, the facility allows customers to construct properties according to their preference and in localities of their choice within the Bank's approved zones. Interest is calculated on a reducing balance basis, which helps lower overall interest costs over the life of the loan .

To apply for a mortgage, you will need to provide several documents. These include an offer letter or sale agreement, a valid identification document such as a National ID, passport, or driver's license, and income documentation showing three most recent payslips or a letter of salary. If you are self-employed, you must provide six months of recent bank statements or confirmation from your employer. You will also need a copy of the certificate of lease or land certificate, bills of quantities and approved plans if you are constructing, and a valuation report from a registered and Bank-approved valuer or quantity surveyor. Your NBS Bank active account must be aged six months or above, and you must have a clean Credit Reference Bureau (CRB) report . For corporate or SME applicants, additional documents are required, including minutes of approval by the Board, audited accounts for preceding financial periods, management accounts, 12-month cash flow projections, Memorandum and Articles of Association, and a Board resolution to borrow from the Bank .

Repayment terms vary by mortgage type. For occupational mortgages, the maximum term is 240 months, which is 20 years, or until retirement whichever is less . For rental mortgages, the maximum term is 120 months, which is 10 years . Commercial mortgages and personal loans against mortgages have a maximum term of 60 months, which is 5 years . For the Construction Mortgage, individual customers can access a maximum term of 240 months, while corporate and SME customers have a maximum term of 60 months . Interest is calculated on a reducing capital balance basis, meaning you pay interest only on the outstanding loan balance. Repayments can be made monthly, quarterly, or bi-annually, and bullet payments are allowed .