The most cost effective way of financing property in the Caribbean (other than taking equity out of your property at home), is to finance through a Caribbean bank. The mortgage rates are higher than what you would pay in the US or Canada, but still relatively low in historical standards.
The rates however are generally are generally not the sticking point for most clients. Caribbean banks have been reluctant to lend since 2008, after many of the institutions took mortgage losses. This makes the banks unreliable lending partners in a lot of cases. The only loans we seem to have no difficulty financing with the banks are for high end clientele through our jumbo loans.
Finding the right lender in the Caribbean for your situation can be tough. Obviously dealing with a mortgage broker is a great way to find out who does what, but the banks are not always willing partners for brokers. It may require some due diligence on the part of the client. Realtors, lawyers or people who have gone through the process in that country are all great resources for you.
You will want to know which banks are actively lending, do they work with non-residents and what is their time frame for putting a mortgage together. This last point is key, as often it can take 3 months or more just to get a commitment on a mortgage.
If you are in the market for bank financing, talk to us first. We will let you know what our bank options are, and also offer alternatives for private financing. Bank financing should always be your first choice if there is an option there, so let us assist you in exploring those opportunities.
Talk to us today about all of our financing choices in the Caribbean.