Mortgages & closing costs
Work out what the purchase actually costs
Two calculators for the two questions every buyer asks. What the bank will want each month, and what has to be in hand on closing day. Figures in TTD, using the stamp duty bands in force in Trinidad and Tobago.
What the monthly instalment comes to, and what the loan costs over its life.
Repayment estimate
25-year term
Purchase price
$1,650,000
Deposit
10% down
$165,000
Amount borrowed
$1,485,000
Total interest over the term
At 6.50% across 25 years
$1,523,048
Total repaid
Principal plus interest
$3,008,048
Monthly instalment
$10,027
Principal and interest only. Property tax, home insurance and any life cover the lender requires are charged on top.
An estimate for planning, not a mortgage offer. The rate, term and fees a lender actually approves depend on income, credit history and their own valuation of the property.
Where the first year goes
Of the $120,322 paid in year one, 80% is interest. The balance only starts falling quickly in the back half of the term.
- Interest
- $95,803
- Principal
- $24,519
Estimated closing costs
House & land
Stamp duty on transfer
$32,000
Legal and conveyancing
2% of purchase price
$33,000
Valuation report
$2,500
Stamp duty on mortgage deed
0.2% above $450k
$2,070
Cash needed at closing
$69,570
About 4.2% of the purchase price, on top of the deposit.
Stamp duty is assessed on the value the Board of Inland Revenue accepts, which can differ from the asking price. Legal and valuation figures are typical market rates, not quotations.
How the duty was worked out
Each rate applies only to the slice of the price inside its band, the way income tax brackets work. The top rate is never charged on the whole purchase price.
- 3% on $850k to $1.25Mon $400,000
- $12,000
- 5% on $1.25M to $1.75Mon $400,000
- $20,000
Stamp duty, band by band
Duty is charged in slices. A rate applies only to the portion of the price inside its own band, so a $2,000,000 house does not attract 7.5% on the whole amount. These are the residential rates in force since October 2008.
| Portion of price | House & land | Land only |
|---|---|---|
| Up to $450,000 | Nil | Nil |
| $450,001 to $650,000 | Nil | 2% |
| $650,001 to $850,000 | Nil | 5% |
| $850,001 to $1,250,000 | 3% | 7% |
| $1,250,001 to $1,750,000 | 5% | 7% |
| Above $1,750,000 | 7.5% | 7% |
Commercial and agricultural property is charged from the first dollar at 2%, 5% and 7%, with no exemption. Rates published by the Board of Inland Revenue.
First-time buyers
A first-time buyer pays no stamp duty on a residential house and land valued up to $2,000,000. The threshold rose from $1,500,000 under the Finance Act 2020 and has applied since January 2021. Above the cap the ordinary bands apply to the whole price, so a purchase just over it is worth structuring carefully.
What else to budget for
- Conveyancing, usually 1.5% to 2.5% of the price.
- A valuation report the lender will insist on, typically $1,500 to $4,000.
- Stamp duty on the mortgage deed itself, above $450,000.
- Life and property insurance, which most lenders require before they disburse.
Rather have someone run the numbers?
V-Star Properties works with buyers from the first viewing through the offer, the bank and closing day. A mortgage pre-approval or proof of funds is required before a viewing can be scheduled, so start with the bank early.