Although there are bank options for mortgage financing in the Cayman Islands, they are not always a good option. For those in North America, that might sound odd, however banks are not always as willing and able to lend money in this part of the world. Or even when they are able to lend, the process can be very slow and frustrating.
Bank options generally allow you to go in with less down payment, offer lower rates and are less restrictive in terms of property. We are not competing with the banks, we offer alternative financing options.
So what do non-bank mortgages look like? The mortgage rates are higher, usually in the 8-10% range, plus lender fees. If you are shopping around for the best deal, a private mortgage in the Cayman Islands is not going to be your first choice. Private mortgages serve a purpose but cost savings is not one of them.
The properties we finance are not as varied as the banks. We generally only work with properties that are higher end properties or properties that rent well in the vacation or expat spaces. We will certainly look at purchases or refinances of principal residences, but again we are looking for mid to high end properties.
Another area where our loans differ from bank financing is qualification. It is much easier to qualify for a private mortgage as the primary requirement is equity in the property. We will lend up to 50% of the value of a property. An appraiser of our choosing will determine the value of the property.
We will also ask to see some other information from you as well, just to show us that you have the wherewithal to make payments on the mortgage. The requirements, debt ratios and such, won’t be as stringent as the banks, but there will be some review of this information.
Talk to us today about our private financing options in the Cayman Islands to see if they might be a good fit for your situation.