Getting a mortgage through a bank in Turks and Caicos is an option for clients looking to buy a vacation property in the island nation. The banks will be your most cost effective way of financing a property in TCI (other than borrowing against equity in your own home in North American or Europe). Here are the pros and cons and what you can expect when applying for a conventional mortgage at the bank.
Obviously the biggest benefit to getting your mortgage through a bank, will be the cost of funds. These are the lowest mortgage rates available to buyers of property in Turks and Caicos. The rates won’t be as low as what you see at home (likely), however you can count on rates in the 5-6.5% range. Amortizations are usually a little lower than what you are used to as well, usually in the 15-20 year range.
Over the long term, a bank mortgage is the most desirable way to finance a property. The local banks are all large Canadian banks which have no issues in terms of stability, however longevity could be an issue as the banks have not shown a commitment to stay in the Caribbean since the recession of 2009.
Island time is something most visitors to the islands grow to love; a laid back lifestyle out of the rat race. Island time is not so great however when you are under a time crunch of a financing deadline to buy a property. The process of applying for a mortgage in TCI (as it is through much of the Caribbean), a long and tedious one, often taking many months just to get an approval. For most real estate transactions, this is not a workable time frame.
Qualification will likely be different than you are used to at home. Some policies are designed to make qualification harder, to ensure the clients are strong enough to manage a slow down in short term rental income.
There are no special programs for self employed clients, or stated income type of mortgages in TCI, the mortgages will all be fully qualifying conventional loans. We do have a jumbo mortgage which has a minimum value of 1M US, this loan can be expedited and closed in much quicker than a standard branch loan.
Talk to us today about our bank mortgage options, and if a private mortgage may be a better option to get you into a new property sooner (with much less stress).