When looking for financing in the Caribbean, you must be prepared for the lack of options, as it can be a challenge. There are still a few banks options who haven’t completely left the market, however they can be very selective in terms of what they lend on, and how much they choose to lend. For most clients in the commercial space, private equity loans or hard money loans, as they are more commonly known, are the quick and easy solution for their financing requirements in the Caribbean.
Hard money loans in the Caribbean can be a bit more restrictive than what you would deal with in the US or Canada, this is due to the marketability of the properties which creates more risk for the lenders. Generally clients looking for straight equity deals, 50% is the rule of thumb. Clients who are able to bring a bit more to the table in terms of income verification, the loan to value can get up to 65%. When it comes to hard money lenders, every deal is reviewed on a case by case basis, so talking to us about your situation and property is always the first step.
Another challenge to finding hard money in the Caribbean is knowing where to look. We work with mortgage funds who will lend throughout the Caribbean, making your job easy. One call to Carib Capital Ltd will get you on track to the financing your project needs; without the headaches and wait times of dealing with the banks.
The banks throughout the Caribbean have not done well since the recession, meaning they have tightened up or simply left the market all together. Most clients will try the banks first before coming to us, as the process can be extremely time consuming and tedious, followed by the a disappointing result.
The rates we offer our clients on private mortgage financing is higher than you would pay at home, just as the bank mortgage rates are higher here as well. Our rates are generally a few points more than you will pay for bank rates, it is simply the price you pay for ease and convenience. It is important to know beforehand that your cost for financing will be higher than what you are accustomed.
Why would someone pay more for a convenience? We can often approve a mortgage within a couple of days versus the banks which can take upwards of 2-3 months. For many buyers, they simply don’t have the time to see if the bank is an option.