Anytime you borrow money abroad, it is never as easy as borrowing at home. Policies, document requirements and such can all be a bit different than you might be used to at your bank. However, these are the hoops you need to jump through to borrow in another country. On top of all this, the mortgage terms will likely be less attractive than you can get at home as well. So why would you want a Caribbean mortgage?
Banks Cannot Lend on Properties Abroad
If you want to borrow money at home to finance a Caribbean property you need to borrow against existing equity in a property you currently own. How much you can take out of your property depends on where you live, your income and of course how much equity there is in the property.
Qualification, mortgage rates, ease of process will all be most favorable if you are fortunate enough to be able to self finance your vacation home.
If you do not have enough equity to fully buy your property, borrowing against your home for your down payment is a great option. By doing this, and securing a mortgage in the Caribbean for the balance, it allows you to purchase without draining your savings. As long as you have 50% of the purchase price, we can help!
Financing through a Caribbean Bank
For many who attempt to deal with a Caribbean bank, there is often a bit of frustration at the process. It often takes months to get a response, and qualification can be difficult especially for those who do not show a lot of income on paper (self employed clients). For this reason, we generally avoid the banks, and deal directly with private lenders or smaller banks (non prime), who are more interested in actually funding loans.
If you are able to meet the guidelines for borrowing in the Caribbean, you will likely be able to finance as much as 70% of the value as a non resident (more if you are a resident on the island). Many clients are surprised to hear this is all they can get but it’s actually the same in both the US and Canada for non residents.
Financing Through a Private Lender in the Caribbean
The reason for paying higher rates, more in fees and having to put more down is a simple one; ease. There is virtually no qualification when you apply for a private loan in the Caribbean, and the loans can fund very quickly. This allows for a quick turn around, something many buyers want if they are hoping to get a better deal on a property.
Private loans take the frustration out of financing a property. Often, they are your only option, due to difficult qualification or a simply unwillingness of the banks to lend on a certain property type.
Talk to us today about all of your financing options in the Caribbean today!
