If you are thinking about building a home in the Turks and Caicos, chances are you will need some guidance. Whether that be from a reputable builder and quantity surveyor, or from a mortgage professional assisting with the funding process, you will likely have questions. The process of doing things in the Islands is not like it is at home (regardless of where that is), so having experienced partners is a must.
We work closely with a number of builders on the island. Although construction financing is not easy to find on TCI, we do have lenders who can facilitate these transactions. Even the major banks have now stopped offering construction loans.
So what do you need to know about financing a new build in the Turks and Caicos? First off, bank financing is almost non existent (we can only do it on exception with our jumbo mortgages). This of course could change, but for now the banks are not getting involved in these projects.
Secondly, when private financing is your only option, you have to expect higher mortgage rates. Once the project is complete, the loan can be flipped to a bank, as they will be more open to financing a completed home.
Lastly, be prepared to have a minimum of 50% equity in the project. When banks were lending, higher loan to values were available however now you have to be prepared for the terms of the private lenders. If you are able to refinance your mortgage after completion with a bank, a higher loan to value may be attainable.
Talk to us today about all of our construction mortgage options in the TCI!