Some real estate experts are saying now is the best time to get a mortgage! Oh really?

So according to the Planning Institute of Jamaica, the total number of mortgages issued between July and September 2023 fell 13%, and the overall value of the mortgages that were issued fell 45%.

That means less people were applying for mortgages and those who did apply were either asking for or getting less money.

And I mean, it’s not hard to see why that might be the case. Things just really expensive right now! And high interest rates, logistics and supply chain issues have made owning a home more challenging. In America, they’re calling it a generation ruined because so many people won’t be able to afford a home anytime soon.

BUT the Realtors Association of Jamaica is saying now is actually the best time to get a mortgage. You just have to shop around.

As Vice President of the RAJ, Gabrielle Grant Gilpin-Hudson explains it, Jamaica is currently in a hybrid real estate climate, meaning it’s both a buyers’ and a sellers’ market. 

In a buyers’ market, there’s a lot of supply and low demand, so buyers can call the shots. 

While in a sellers’ market, there is more demand than supply, so sellers can get top dollar for their properties.

However, right now, there’s a clear segmentation in the market.

There’s heavy demand for properties less than J$40 million (about US$250,000).  There are more buyers than sellers for these properties, which means sellers in that segment still have the upper hand. 

But for properties over that amount, there are more sellers than buyers, which means the buyers have more power to get deals and negotiate prices. 

So it’s about being strategic in your search, maybe consider different locations. You know anything in Kingston is gonna be expensive.  St Ann as well. But with the highway systems building out, you don’t have to live in Kingston to have easy access to it.

But Kalilah! What about interest rates? Mortgage interest rates are now 10% at some institutions!  And those high interest rates might be around for a while. 

As Gilpin-Hudson noted, even if the Bank of Jamaica lowered interest rates today, it would still take a while for the effect to trickle down through the mortgage sector.

And one thing we know for sure is that housing costs will continue to go up. So you could look at it like this – 10% on a J$30 million mortgage is still better than 8% on a J$45 million loan. Same property.

Plus when interest rates come down, you may be able to refinance your mortgage with the lower rates. 

So it’s all about shopping around, finding the right property for your budget and the right mortgage provider to get the first deal.

And that’s the bottom line.