Growth & Jobs | ‘There’s never a perfect time to prepare for home ownership’

As housing affordability continues to be a concern for many Jamaicans amid shifting market conditions and ongoing economic uncertainty, Karon Lewis, acting business relationship and sales manager at JN Bank, has urged prospective homeowners not to wait for the “perfect time” to begin preparing for home ownership.

“There’s never going to be a perfect time because there’s always going to be something happening,” he said, emphasising that consistent preparation can make the path to home ownership more achievable. “Life has a way of throwing unexpected challenges your way. That’s why it’s important to start preparing as early as you can. The earlier you begin, the more options you’ll have when you’re ready to make your purchase.”

Lewis, who is also a mortgage specialist, said aspiring homeowners also need not wait until they have found their dream home before starting the journey. An initial purchase, he noted, can serve as a steppingstone to the home buyers ultimately aspire to own, as homeowners build equity and strengthen their financial position over time, placing them in a better position to move up the property ladder.

“You build what’s called equity. As your property’s value appreciates and the debt decreases, you can tap into that equity. You may be able to use it as a downpayment on another home, or you can sell the property and use the value you’ve built to help finance your next purchase,” he said.

For individuals who may still be years away from purchasing a home, he said it is still worthwhile to seek financial guidance early, noting that understanding the mortgage process ahead of time can help avoid common pitfalls and make the goal easier to achieve.

He urged prospective homeowners to begin where they are by building sound financial habits, growing their savings and gaining a clear understanding of what they can realistically afford through a mortgage pre-approval, positioning themselves to take advantage of opportunities when they arise.

“Foster a relationship with a bank,” he encouraged aspirants, noting that mortgage eligibility is determined by much more than a borrower’s ability to make a down payment. He said lenders assess an applicant’s overall financial health, including income stability, debt obligations, savings habits and credit history.

“Imagine you eventually decide you want to purchase a home for $36 million and, when it’s time to apply for the mortgage, you realise that, because of your car loan or student loan, you don’t qualify for that amount. If you had gone to the bank earlier and spoken to a mortgage representative, they could have helped you understand your borrowing capacity and guided you on the steps needed to get there.”

Lewis added that people who are not yet in the market for a home can also begin building towards that goal in other ways. He pointed to JN Bank’s Tell-a-Friend Referral Programme, through which eligible participants can earn up to $100,000 for referring new customers. Those incentives, he said, can be set aside to help fund a future home purchase, whether by contributing to a deposit or meeting other upfront expenses.

Acknowledging that the home ownership journey can become tedious, burdensome and stressful if approached unprepared, Lewis said planning ahead can make a significant difference.

“What’s important is that you take stock of your own life and make decisions that are right for you. Plan, prepare and have the right people in your corner to help you understand what’s required, and it can be a breeze.”