| Min Date: | |
| Max Date: |
| Date | Published Mortgage Market Reference Rate (MMRR)1, 2 | Treasury Yields3 | Commercial Bank's Cost of Funds4 | New Real Estate Mortgage Loan Rates (Residential)5 | Outstanding Real Estate Mortgage Loan Rates (Residential)5 | Commercial Banks' Outstanding Real Estate Mortgage Loans (Residential) Year-on-Year Percentage Change |
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Source: Central Bank of Trinidad and Tobago
1. The Residential Real Estate Mortgage Market Guideline sets the framework for transparency in mortgage loans’ terms and conditions by commercial banks in Trinidad and Tobago and incorporates a Mortgage Market Reference Rate (MMRR) that commercial banks may choose to utilise as a base rate for setting their adjustable mortgage rates. The MMRR is not a policy rate but is calculated utilising information on the system cost of funds and the 15-year Treasury bond yield. The published MMRR rates are rounded to the nearest 25 bps. The MMRR was reviewed in 2017 which resulted in an adjustment to the weighting structure to 50:50 between the cost of funds of the banking system and the 15-year Treasury rate from 40:60 ratio (MMRR Guideline June 1, 2017)
From the period September 2020 the MMRR was held constant at 3.00 per cent while the Central Bank undertook an in-depth assessment of the operational aspects of the calculation of the MMRR. In September 2021, in the context of the financial situation brought about by the COVID-19 pandemic, the Central Bank and commercial banks agreed to maintain the MMRR at the then-existing level (3.00 per cent) for a 2-year period.
2. In light of the suspension of the MMRR since September 2021, the MMRR for December 2023 reflects the rate as at September 2021 (3.00 per cent).
As a result, changes in the components (system cost of funds and 15-year Treasury rate) which occurred during the period of suspension shall not be reflected in the determination of the MMRR for December 2023 and thereafter (MMRR Update February 29, 2024).
3. The 15-year Treasury bond yield replaced the 10-year bond yield in December 2013 (Media Release, December 2, 2013).
4. Represents a weighted aggregation of average cost of deposits liabilities, cost of other funding liabilities and deposit insurance and reserve costs.
5. Weighted average rates for new and outstanding mortgages.
