Financing a foreign property can be challenging. By far the easiest option is to take the equity in your home if you have it. If you don’t have the equity in your home, then you need to find out the options in the country you are looking, as chances are no lenders in the US or Canada will finance a foreign property.
Working with Foreign Banks
In many of the Islands throughout the Caribbean, you will find Canadian banks. The appearance of these banks may add a feeling of familiarity for Canadian buyers, however that feeling fades pretty quickly once you start dealing with them. Policies can seem quite ‘foreign’, for lack of a better term, and qualification is not nearly as easy as you may be used to at home.
Other banks you will run into local or Caribbean banks, but again, these lenders seem more set up to deal with the local peoples and norms than what is familiar in North America.
Private Financing for a Foreign Property
Private financing is a bit more traditional for those who are familiar with it. These loans are generally equity based and don’t require the same scrutiny as bank financing. More equity will be required than you may be used to, however most Caribbean markets are not as mature and predictable as North American markets.
Rates and fees will be only slightly higher than private financing in the US or Canada. The cost of financing a foreign property (especially the Caribbean), can be costly.
Buying a foreign property is a very rewarding experience. Financing this property is just part of the experience. By working with Carib Capital we will guide you through this process to make it as seamless as possible. Talk to us about financing a foreign property today!
