The buyers are swarming back to the Turks and Caicos Islands! After several years of slow moving real estate after the Great Recession, the market is once again getting hot. The challenge however for many buyers is coming up with the cash to buy their dream property in the sun. It has always been difficult to get a home loan in TCI, however the crash in 2008 only made it worse. The banks have opened the doors but unfortunately closed the vault.
So where do you go to get a home loan here in TCI? Carib Capital Ltd can help with that, as we have access to private money which we can finance up to 50% of the property value in Providenciales. A little lower loan to value than the banks, but they are really not a reliable lending source on the island.
Trying a TCI Bank for Financing
We certainly wouldn’t deter a client from trying a bank first. They can go as high as 70% ltv, and the rates will be a point or two lower. Having said that you must know prior to starting that the process is extremely slow (usually months for an approval), and qualification can be difficult and frustrating.
For those looking to purchase fairly quickly, the banks are simply not an option. If you have more time till closing or you are building a new villa, you may have a chance. Again, prepare yourself to be patient.
The Benefits of Private Financing in the Caribbean
Private financing for your vacation or investment property in the Turks and Caicos is a great option. Private financing is offered by companies or individuals, looking for a better return on their investment than traditional investments. They lend to strong applicants who are looking for easy access, to reasonably priced funds for property.
The price of these funds can vary but for residential you are usually looking at 8-9% plus lender/broker fees. Certainly not the norm by North American standards however even bank funds are a lot more in the Caribbean. Let’s call it sunshine tax.
The maximum loan to value we can finance here in the Turks and Caicos is 50% of the property. Again this is quite conservative compared to mainland standards, however property values are not always as predictable as they are in larger cities.
Fastest Growing Caribbean Tourist Destination
The Caribbean Tourist Organization has declared Turks and Caicos the fastest growing tourist destination in the Caribbean for 2016. This goes to show how popular the TCI is becoming and what a great investment that property can be in this little slice of paradise. The toughest part to becoming a home owner here is financing your dream; talk to us today about all of our private mortgage options.
