(876) 878-2886
A Step-by-Step Guide to Buying a House in Jamaica
Buying a house in Jamaica requires careful planning and a good understanding of the process. There are some unique aspects to consider – such as the National Housing Trust (NHT) and local taxes – but by following the key steps, you can navigate the purchase smoothly.
In this guide, we outline the essential stages from budgeting and mortgage options to making an offer, closing the sale, and securing insurance. With the right preparation, you can avoid surprises and move confidently toward owning your Jamaican home.
Step-by-Step Guide to Buying a House in Jamaica
Here are the key steps to follow when purchasing a home in Jamaica.
Step 1: Set Your Budget
Evaluate your finances and decide what you can afford. Aim to save at least 5%–10% of the property price for a down payment. You’ll also need funds for closing costs (taxes, fees, etc.), which can be another 5%–10% of the price. Try to reduce any existing debts and improve your credit before applying for a mortgage. Finally, factor in ongoing expenses like property taxes and home insurance when setting your budget so you have a realistic picture of homeownership costs.
Step 2: Explore Loan Options
Since most buyers need a mortgage, compare your loan options early. If you’re an NHT contributor, see if you qualify for an NHT home loan at a favourable interest rate. (As of 2025, an individual can borrow up to JMD $9 million from NHT at rates as low as 0%–4%, depending on income.)
Many people combine an NHT loan with a bank mortgage to cover the full purchase price. Whichever route you choose, get pre-approved for your loan before you start house hunting. A pre-approval letter from your bank or the NHT will confirm how much you can borrow and show sellers that you’re a serious buyer.
Quick Facts
Down Payment: 5%–10% of property price
Closing Costs: 5%–10% of property price
NHT Loan Max: JMD $9 million
NHT Interest Rates: 0%–4%
Deposit: Usually 10% of price
Attorney Fees: 2%–3% of price
NHT Loan Benefits
As of 2025, NHT contributors can borrow up to JMD $9 million at interest rates as low as 0%–4%, depending on income. Many buyers combine NHT loans with bank mortgages to cover the full purchase price.
Step 3: Research the Market
With your budget set and financing lined up, start searching for properties. You can browse online listings, check newspapers, and work with a licensed real estate agent. An agent can access more listings and guide you to homes that fit your criteria and budget.
Compare recent sale prices of similar properties in your target areas so you know the market value. Also consider factors like the neighbourhood, proximity to work or schools, and the property’s condition. Doing this homework will help you identify a fair deal when you find the right house.
Closing Costs Breakdown
Stamp Duty: JMD $5,000 (split between buyer and seller)
Transfer Tax: 2% of sale price (paid by seller)
Title Registration Fee: ~0.5% of price (typically split)
Attorney Fees: 2%–3% of purchase price (each party pays their own attorney)
Step 4: Make an Offer
When you find a house you want, you’ll make a formal offer to the seller. Typically, your real estate agent helps you submit an Offer to Purchase document stating your proposed price and any conditions. Include your mortgage pre-approval letter to strengthen your offer. If the seller accepts, their attorney will draft a Sale Agreement (contract) for both parties to sign.
At this stage, be sure to have your own attorney review the contract — it’s best for the buyer and seller to have separate lawyers. The Sale Agreement will detail the terms (price, deposit, timeline, etc.). Once you sign, you usually pay a deposit (often 10% of the price) to confirm the deal.
Quick Facts
Down Payment: 5%–10% of property price
Closing Costs: 5%–10% of property price
NHT Loan Max: JMD $9 million
NHT Interest Rates: 0%–4%
Deposit: Usually 10% of price
Attorney Fees: 2%–3% of price
Step 5: Understand the Buying Process, Fees & Taxes
With the contract signed and deposit paid, the transaction moves into the closing phase. Now is when you have to pay the government fees and taxes. The sale attracts a stamp duty of JMD $5,000 (split equally between buyer and seller), and a transfer tax of 2% of the sale price (paid by the seller). Additionally, there is a title registration fee of about 0.5% of the price to register the new owner, which is typically split between both parties.
You will also pay your attorney (and the seller pays theirs) a fee, typically 2%–3% of the purchase price. Make sure you budget for these closing costs. The legal paperwork and payments (stamping the sale agreement, paying taxes, and updating the title) can take a few months to complete, but your attorney will handle the filings and guide you through the process.
Quick Facts
Down Payment: 5%–10% of property price
Closing Costs: 5%–10% of property price
NHT Loan Max: JMD $9 million
NHT Interest Rates: 0%–4%
Deposit: Usually 10% of price
Attorney Fees: 2%–3% of price
Step 6: Finalise Your Mortgage + Insurance
Next, you’ll finalise your financing and prepare to close the deal. Submit the signed Sale Agreement and all required documents to your lender so they can finalise the loan approval. The bank’s attorneys will then work with the seller’s attorney to transfer the title and register your mortgage (recording the bank’s lien on the property).
Before the bank releases the funds, you must have a home insurance policy in place on the property (lenders require this as protection). On the closing date, the bank disburses the loan funds to the seller, the title is officially updated with your name, and you receive the keys to your new home.
Why home insurance is essential for protecting your investment
Your new home is a major asset, and home insurance is essential to protect it. Jamaica is susceptible to hurricanes, floods, earthquakes, and fires, which can cause severe damage to houses. Homeowners insurance covers the cost of repairs or rebuilding after such disasters and also helps replace your belongings if theft or vandalism occurs.
General Accident offers comprehensive home insurance coverage for Jamaican homeowners – protecting your house and contents against a wide range of risks, including fire, hurricanes, theft, and liability. By choosing a trusted insurer like GenAc, you ensure that your hard-earned investment is secure for the long run.
To learn more, contact GenAc today.