Intro
Caribbean mortgages have, over the years become easier to obtain
for the foreign investor. There are a number of banks offering
mortgages but they all have slightly different lending criteria
making the use of an international mortgage broker very beneficial.
Typically the currency of choice by the banks is USD which is
advantageous during periods of a rapidly depreciating dollar.
Availability
Mortgages in the Caribbean are available at up to 70% LTV and
over a term of 20 years however this will vary depending on which
island or with which developer you choose to purchase. Most banks
will insist that you open a bank account with them as well so that
they can withdraw your mortgage payments each month.
Cost
Interest rates in the Caribbean are generally from 6.5% upwards
and tend to track LIBOR so are therefore variable. Bank arrangement
fees are usually 1% of the loan amount and some banks insist that a
life insurance policy is assigned to them. With most Caribbean
yields being generally quite high, the mortgage cost, in
comparison, makes this an interesting investment option.
Application Process
Depending on whether you are employed or self employed, the
level of documentation required by the bank will vary. The bank
will expect all documents to be sent to them in advance, some of
which need to be certified.
Mortgage Finance from Frontiers Financial Services
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