The Dominica Building and Loan Association

The Association helps members get loans secured by their land, supports homeownership, and builds a fund that is returned to members with interest. APPLICATION FOR MEMBERSHIP
To become a member of the Association any person of sound mind and good character may apply on a subscribed form to the Secretary who submits same to the Board of Directors for approval. Shares are of a nominal value of $250.

00 each which is paid by monthly instalments of $1.00 per share. APPLICATION FOR LOANS
A member may apply for a loan after having been a member for not less than 6 months. The loan will be secured by a caveat in favour of the Association noted on the borrower’s Certificate of Title and terms of conditions of the mortgage are detailed in a deed which will be registered. This enables the member to know his/her rights and entitlements and the limits of the Association’s rights against his/her property under the mortgage. The building on the property must be insured at least against the risks of fire and hurricane and there will be endorsed on the policy a clause signing the owners rights under the policy to the Association to the extent of the mortgage indebtedness. TERMS OF REPAYMENT
The terms of repayment of the Mortgage debt is usually counted as 15 years but the yearly surplus of the Association is shared among the members as dividends. This enables the borrower to build up a credit account made up of his monthly share payments and his yearly dividends which serve to reduce the repayment period of his mortgage. CHARGEABLE INTEREST RATES
The Association is also a savings institution. Persons whether members or not may invest in the Association and thus augment the funds that the Association uses to lend out as mortgage loans. The interest paid on such investment is at a rate of 3.5% per annum. The interest charged on mortgage loans is 7.75% on the reducing balance. OTHER BENEFITS
The interest on Deposits and the annual profits of the Association are both free of Income Tax. The Annual dividends credited to members may also be exempted from tax so long as payment in cash to the members is withheld. The Association is primarily concerned as a self-help project designed chiefly to assist ambitious persons in comparatively restricted circumstances to purchase or build their own homes.