Entrance to the Victoria Mutual Building Society branch at Liguanea, St Andrew. - File

Victoria Mutual Building Society's (VMBS) new mortgage rate structure took effect Saturday, but the repricings affect new loans only.

The society's rates are now set at 13.5 per cent to 13.99 per cent on new mortgages.

The increase was announced mid-February, four days following a similar move by market leader Jamaica National Building Society which adjusted its rates to 13.5 per cent on February 11.

Jamaica National 's new rates are 13.5 per cent for members of the society and 13.75 per cent for non-members.

Previously, loans were issued by the two rivals at a low of 12.99 per cent.

Boosting rates

Both mortgage lenders, which have a lock on 84 per cent of the private mortgage market among a field of four players, cited the increase in signal rates by the Bank of Jamaica as the underlying reason for boosting rates.

VMBS says, however, that its 'More than just rates' feature remains in effect, which means that borrowers will not be charged commitment fees, will qualify for free content insurance, get 50 per cent discount on valuations, but only those done by its property arm, Victoria Mutual Property Services Limited, as well as free insurance coverage up to $1 million.

business@gleanerjm.com