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Mon 11th Mar, 2024

 It has been widely published and therefore no secret that the Government of Trinidad and Tobago is beginning the collection of Property Tax this year, 2024. Through the Finance Act 2023 the ways to collect and use this tax will be implemented and it will be payable to Municipal Corporations.

What we also know is that every property in Trinidad and Tobago, whether residential, commercial or industrial, has an assigned rental value. This ‘rental value’ is a calculation of the rent the property will get on the open market if it was put up for rent. For those of us who have a residential property or a home, the property tax you will be required to pay on your home is calculated at a rate of 3% of the property’s Annual Rental Value (ARV).

But let us break that down…so we can understand clearly how your home’s Property Tax is calculated.

Calculating Your Property Tax is Simple

Calculating your property tax in Trinidad and Tobago involves a straightforward process.

  1. Determine Your Property’s Annual Rental Value (ARV):
    • The Annual Rental Value, or the estimated annual rent your property would fetch on the open market if it were rented out, is assigned by the government based on factors such as location, size and condition of the property.
    • You can find your property’s Annual Rental Value on your Property Tax Assessment Notice or by contacting the Valuation Division of the Ministry of Finance. (N.B. The Board of Inland Revenue will determine the annual taxable value and issue to you a Notice of Assessment, which will tell you the amount of property tax to be paid.)
  1. Calculate the Property Tax:
    • For residential properties, the property tax rate is 3% of the Annual Rental Value.
    • Multiply your property’s Annual Rental Value by 0.03 to find the annual property tax amount.
  1. Example Calculation:
    • Let’s say your property’s Annual Rental Value is $48, 000.
    • Find your Annual Taxable Value by deducting 10% from this = $43, 200
    • 3% will be calculated of your taxable value and this will represent your Property Tax = 3% of $43, 200 = $1, 296.00 per year or $108 per month.

The figures used above are an example and can be used as a guide. To work out how much Taxes you might have to pay, simply replace the Annual Rental Value in the example with the (estimated) projected rental value of your property.

You must pay attention to the following:

  1. The amount of tax payable will be contained on a notice called a Notice of Assessment of Tax Liability. This is expected to be issued and received by residential owners by the end of March, 2024.
  2. The Property Tax stated on the Notice of Assessment of Tax Liability will be due and payable on the 30thSeptember 2024.
  3. An owner who is dissatisfied with either the valuation on the Notice of Valuation or the amount of Property Tax on the Notice of Assessment of Tax Liability, can follow the following legal avenues:
  • Disputing a Notice of Valuation:

If an owner disagrees with the valuation contained in the Notice of Valuation, he/she may object to the valuation within thirty (30) days after service or receipt of a notice of valuation, and to provide the grounds upon which the objection is being made. If an owner is dissatisfied with the Commissioners decision, he/she can appeal to a newly constituted body called the Valuation Tribunal.

  • Disputing a Notice of Assessment of Tax Liability:

If an owner disagrees with the amount of Property Tax to be paid (i.e., the amount that is contained on the Notice of Assessment of Tax Liability), he/she can object to the assessment by notifying the Board of Inland Revenue, in writing, of the objection, within twenty-one (21) days that the Property Tax will become due and payable. The owner may appeal the decision, to the Tax Appeal Board, in writing.

Become Home Smart

Always remember that TTMF is here to help.  Set up an appointment to speak with one of our knowledgeable Customer Service Representatives to find out more about how we can help you.

You can also make an appointment with a knowledgeable TTMF representative by logging on to www.ttmf-mortgages.com to chat online or call 623-TTMF.

We’ll take you from here…to home. Let’s get started…today!

Related articles:

The Ins and Outs of Property Tax

Property Tax FAQs

Property Tax Starts in January

The Finance Act 2023

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Thu 22nd Feb, 2024

Did you know that getting a loan to either purchase or upgrade your home is difficult when you have a bad credit score? Truth is, your Credit Score is key to having a stable financial life. Your credit score is one of the most important factors lenders look at when considering your loan application as it tells the story about your approach to debit and credit servicing.

So, building a healthy credit score (making you pre-approved ready) is important, but it can be difficult to do especially when one does not know the first step on how or where to start.

But, don’t worry. It’s not the end of the world. Your credit story can have a ‘happy ending’ if you take steps to improve your credit score. Here is some valuable information for you…

 

Where did the credit score originate?

The importance of a credit score started in 2004 with the advent of the Automated Credit Bureau (ACB) to which all commercial lenders subscribe. The Bureau is the first and only automated, on-line credit reporting agency in Trinidad and Tobago. As a subscriber, a lending agency like TTMF can access information on a customer’s credit history/profile from each of the other member subscribers as they seek to:

  • Determine how risky it would be to offer you credit
  • Evaluate your ability to repay your credit repayment pattern over time and
  • The likelihood that repayment will be consistent and timely

 

What is a Healthy Credit Score?

A healthy credit score shows that current loans, as well as previous financial obligations by the borrower, are being repaid on time. You can obtain a copy of your credit report from the Bureau. The credit report provides details such as:

  • The types of credit facilities that have been granted, i.e. consumer loan, credit card, mortgage etc.
  • The amount of credit granted
  • The length of time that the accounts have been open
  • Whether or not the loans were paid on time
  • Whether any additional requests for credit were made

Your credit profile contains Personal Information, Residence History, Employment History, Credit Information (various loans granted and repayment history) and Inquiries (whether and from whom attempts to obtain credit facilities were made).

 

How do you build your credit score?

Building your credit score means putting in the work and patience to improve your standing and establishing a good credit history. Although there is no one-size-fits-all apporach, there are some basic principles that hold true. Mainly,  a high credit score means that you are a low-risk borrower, which could lead to pre-approval/borrowing success. So, how is it done?

  • Be prepared to discuss past credit problems honestly with your lender. Tell them about any repayment issues that may have been caused by unemployment, illness or other financial difficulties.
  • Make your monthly payments (e.g. credit card) on time. Show lenders that you are responsible with money and that you will not default on a loan in the future.
  • If your goal is to acquire a home in the short to medium term, you should seek to improve your debt-servicing ratio (DSR). Your DSR is the percentage of your monthly gross income that is committed to repaying loans, credit cards, higher purchase etc. When appling for a mortgage, your DSR should not exceed 40%.
  • Ensure that you repay as many of your loans as possible and keep credit card balances low until you are ready to submit your mortgage application. The lower your level of debt at the time of applying for a mortgage, the more affordable your new home is likely to be.
  • Put at least one major loan, like student loan, or car loan on automatic payment. This is a crucial step in building a high credit score. It demonstrates that you can meet your financial obligations on time, which lenders look at before offering further credit.

 

Become Home Smart

By understanding the importance of your credit score, you can also better understand the mortgage application process and criteria. You may even feel empowered to plan your future and achieve your home ownership goals.

…And if your want to find out more about your Credit Score and how it’s calculated, check out this FAQ.

Always remember that TTMF is here to help.  Set up an appointment to speak with one of our knowledgeable Customer Service Representatives to find out more about how we can help you; or Get Pre-Qualified online in under 1 minute.

You can also make an appointment with a knowledgeable TTMF representative by logging on to www.ttmf-mortgages.com to chat online or call 623-TTMF.

 

We’ll take you from here…to home. Let’s get started…today!

RELATED ARTICLES

Avoid: Disregarding your Credit Rating

Don’t Make These 6 Common Mortgage Mistakes

Key Steps to financing your First Home

Getting a house loan on your own: Here’s what single people need to consider

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Wed 17th Jan, 2024

You may have promised yourself that this year, 2024, will be your year for buying a home. You may even have said that the most important thing in applying for the mortgage of this home is to focus on saving for your deposit. But really, that thinking can be seen as the most basic knowledge on mortgages and you will end up being ill-prepared and not really knowing how to become mortgage ready.

Not to worry…many things in life work better if you do the groundwork first, and buying a home or land is no different. Obtaining a mortgage for your land or home can be seen as a two-step process: First you begin with being pre-approved or pre-qualified for a mortgage and then you move onto the actual mortgage application process.

Pre-approval or pre-qualification is a preliminary evaluation of a potential borrower by a lender to determine whether they can qualify for a mortgage.  It is the first step in the mortgage process, where a lender may check basic information like your age, income and existing financial commitments.

This Pre-Approval or Pre-qualification is not a binding agreement, however. It is simply something you can use to gauge your buying capability.

For example, we have a Pre-Qualification exercise which analyses your financial information to help you determine the amount of money you can borrow, your interest rate and your monthly payment. At TTMF, your pre-qualification process will usually provide you with a Pre-Qualification Certificate at the end, which tells you everything you need to know and the amount you can borrow…in advance.

But after you are pre-qualified or pre-approved, your next step is to identify the property that you wish to purchase within your prequalification amount to begin the mortgage application process. This is an in-depth process that goes deep…all the way to eventually having an offer of financing from the lender.

But understand this: although you have pre-qualified or been pre-approved and might be deciding to move to the second stage – the mortgage application stage – you could run into problems, which you must stay away from:

 1. Your Monthly Expenditure

Making any big life changes, changing careers or switching jobs could put your financial capabilities in question. Also, can you really afford a mortgage, if you are to add the new responsibilities of property tax, utility bills, travel costs and any other regular payments alongside groceries and savings? Some adjustments will need to be made…

 2. Your spending habits

Taking out any new debts, big spending or big purchases can damage your chances of being accepted for a mortgage. Some yellow-flag spending habits are entertainment, expensive holidays and luxury items which appear to be beyond your means.

 

Get Home Smart

By understanding the meaning of Pre-Approved vs Pre-Qualified, you can also better understand the mortgage application process and criteria. You will even feel empowered to plan your future and achieve your home ownership goals.

Always remember that TTMF is here to help.  Set up an appointment to speak with one of our knowledgeable Customer Service Representatives to find out more about how we can help you; or Get Pre-Qualified online in under 1 minute.

You can also make an appointment with a knowledgeable TTMF representative by logging on to www.ttmf-mortgages.com to chat online or call 623-TTMF.

We’ll take you from here…to home. Let’s get started…today!

Related articles:

Pre-Qualified for Mortgage Financing : What You Need to Know

Are you in the Market for Home Mortgage Loan? Here are your options:

What to Ask Before Taking a Mortgage

Assessing Your Mortgage Readiness – Four Important Questions