Carib Capital now has another bank option for Caribbean home buyers. As we have talked about extensively here on our blog, the banking experience is not the same as it is in most of North America and Europe. Turn around times are slow, qualification is difficult and rates are higher. Having said all that, bank mortgages are the best priced, and highest loan to value loans we offer for residential properties.
What Can you Expect for a Bank Mortgage?
Bank mortgages will generally be a point or two cheaper than private mortgages in the Caribbean. The rates are usually between 6 and 7% today, along with a 1% lender fee (plus broker fee). The amortization for these loans are generally 15 years, this means your payments may actually be higher in a lot of cases than they will be on a private mortgage which often offers interest only payments. Of course, your mortgage does not go away very quickly when you don’t pay down any principal.
Bank mortgages do have their benefits however outside of just a lower rate. These mortgages are generally more flexible, they are more secure and will save you a significant amount of money over the life of your mortgage. Another key benefit is the amount of down payment required to qualify, only 30% of the purchase price.
Where Can we Offer Bank Mortgages
We are not going to get into an extensive list of countries where we can offer our new bank mortgage product, here are just a few of the locations where we will offer mortgages to non resident buyers:
- Bahamas
- Turks and Caicos
- Cayman Islands
- Virgin Islands
- Barbados
Again, contact us directly to discuss the location you would like to buy, as we may very well have a conventional mortgage option which may work for you.
How to Apply for a Bank Mortgage in the Caribbean?
Applying for a mortgage is easy, we will work with you to put a package together to submit to the bank. Here is what we generally need to get you qualified:
- Application
- Job letter (noting salary, position and start date)
- Last 3 years tax returns
- Printout on all savings, checking and investment accounts
- Offer Letter or Sales Agreement for the new property
- Appraisal on the property
- Passport & driver’s license
- Credit bureau
The bank may need more info than this, but this is the basic package we require. Again, it is important to remember that these mortgages will not be approved or closed as quickly as you may be used to at home. The process can be frustrating at times, but again, these mortgages are often the only option we have in some destinations.
Talk to us today about buying your new dream home in the Caribbean!
