Owning a home will be one of the great steps in your life, a hallmark, a major milestone… so, we say: Take the leap! Having your own home provides security for our loved ones and constitutes the heritage for our families. That is why in this edition, we will highlight the most important benefits to homeownership.

The first-time homeownership benefits of:

1. Tax Exemption

Many people may not even think of this type of deduction due to simple lack of awareness or difficulty in understanding the current laws that support them. In some cases, those deductions or exemptions can mean great refunds.

There are many expenses that the government allows you to deduct from your declared income, and being a first-time homeowner is one of them. Tax exemptions provide extra disposable income, by reducing the amount of tax you pay. You will first have to seek approval from the Inland Revenue Division, and then claim the tax deductions while filing your tax return the following year.

From 2022, there is also the increase the first-time homeowner tax-allowance limit from TT$25,000 to TT$30,000 per household on mortgage interest for the first five years. Tax deductions on home ownership would provide extra disposable income by reducing the amount of tax paid.

Make sure to read Ministry of Finance – Reducing Your Income Tax and Inland Revenue Division – Deductions and Required Supporting Documents, Income Tax Return for more information.

2. Exemption from stamp duty up to a maximum of TTD$1.5 million

Stamp duty is a tax that must be paid when doing certain transactions that require legal documents. The public is required to pay stamp duty tax to the Inland Revenue Division (IRD) when buying or a home, or seeking a mortgage.

As a first-time homeowner constructing your own home on approved lands, the mortgage deed you receive will qualify for exemption up to a maximum of TTD$1.5 million where the mortgage is for the construction of that home.

3. Affordable housing programmes

There are several private affordable housing programmes to choose from. The Government has revised its Affordable Housing Programme. For instance, if your household income is TT$14,000 or lower per month, you can now access a 2% mortgage financing for properties valued up to TT$1,000,000. Visit Owning your first home has never been this easy! for more insights.

With TTMB, a 2% facility offers up to 100% financing, a maximum repayment term of 30 years, inclusive of TT$20,000 approved for major appliances. For a 5% mortgage facility, your income must range between TT$14,001 and TT$30,000 per month for properties valued up to TT$1.5 million, with 95% financing and the maximum term of the loan at 30 years up to age 70.

Check out our 2% Program and 5% Mortgage Program to read up about our mortgage rates.

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