Mortgage Lenders in the Caribbean

Although there is no shortage of mortgage lenders in the Caribbean, there are a shortage of lenders who are actually lending. A number of the international banks operating in the Caribbean, have pulled back or are getting out of the region all together. Local banks also suffered significant losses during the recession which has them nervous about getting back into the market.

In terms of non bank lenders, they are less common than you might expect as well. We are always searching for new lenders abroad to work with, and we pass on these options to our clients who are looking for mortgages in the region. So what are your options?

Caribbean Banks

Banks are generally fairly profitable, this is why you see them on every street corner. It is no different in the Caribbean where there are no shortage of banking institutions. The problem for many of them is the inability or lack of desire to get back into the local mortgage market. Many of the these international lenders are still working to get the bad deals off their books from 2009.

There are banks lending however, but they are definitely more conservative than they have been in the past. On top of figuring out which banks are opening their wallets, you need to know the process and how long it will take you to get approved for a mortgage. It is no exaggeration to say that it could take months just to get an approval.

If you are looking for a higher loan to value (ie above 50%), banks may be your only option for a mortgage in the Caribbean.

Private Mortgage Lenders

Private mortgage options are definitely the path of least resistance. The issue with private mortgage loans are the cost versus bank financing. You will generally pay a minimum of 2% more on a private mortgage than you will pay at the local banks (which are quite a bit higher than banks in North America). These loans generally max out at 60-65% loan to value of the property value.

The pros of using a private mortgage lender are just as obvious. These loans can be approved quickly, with little paperwork. They can also fund very quickly as well, which can work well with the timing of a typical property purchase; something the banks have a difficult time doing.

Part of our network of private lenders, are mortgage funds who lend clients money out for a higher return than a typical bank investment. We have a number of these funds who can assist buyers when the bank is unable or unwilling to help.

International Commercial Mortgages

For those looking for commercial financing for resort or development loans, we work with non institutional lenders who offer financing on properties in the hospitality, health care and multi-family sectors. These international mortgages would be qualifying loans, similar to what you would need to do in order to qualify in the US or Canada. The rates abroad are not the same as institutional loans you can get at home, however those options are basically non existent in the Caribbean today.

The costs of these loans can vary quite a bit depending on the sector and the deal itself as they are priced on a case by case basis. Talk to us today about your situation and (potential) property. Our Caribbean mortgage brokers will work with you to find the best mortgage financing for your situation.