If you are looking to buy a property on Grand Cayman, and you need mortgage financing for your purchase, it’s important to secure this before making an offer. Mortgages can be tough to get throughout the Caribbean, and Grand Cayman is no different. The options are similar to what you would see in the US or Canada, but qualification is just much harder as lenders are reluctant to lend on real estate.
This situation started in Grand Cayman after the 2008 recession and the problem has persisted. Some banks have all but either left the Caribbean or no longer offer mortgages. Things will hopefully get back to the pre-recession norm, but for the time being, this is the situation.
Not all banks have stopped lending, mortgages are still being offered. If you are rate sensitive, have a more traditional conventional down payment (ie 30%), and the time to go through the lengthy process, a bank mortgage will likely be your best bet. Nobody wants to pay more than they have to, you just need to be patient and willing to try several different lenders to find the right one.
Most lenders in Grand Cayman are not headquartered on the island, this means mortgages often have to be approved elsewhere. This structure and ‘island time’, can cause delays; be prepared.
Another option for financing in the Cayman Islands, is private financing. Private financing is non bank financing which generally offers higher rate mortgages for clients who are unable or unwilling to try the banks. This financing is much easier to arrange, with the main qualifying criteria being equity in the property (generally 50%).
Private mortgages can be arranged in a fraction of the time as most banks can in Grand Cayman. For many clients, the convenience and confidence they have in this financing, makes he higher rate a non issue. This will of course depend on the client, however they can be a great tool to purchase your new Cayman property.