Non-Bank Mortgage Financing in the Caribbean

At Carib Capital, we deal in non bank mortgage products, one of which being private mortgages. Private mortgages are those which are funded by individuals rather than institutions such as banks. There are several differences between bank and private non bank mortgages, and understanding the niche that each lender services will help you understand which is the better option for you.

Here are just a few of the differences between the two types of loans:

• bank rates are lower than private mortgage rates
• private mortgages have much less stringent lending criteria
• private mortgages rely much more on equity than bank mortgages which rely more heavily on income and credit worthiness
• private mortgages can fund quicker, with less documentation
• the fees can be higher with private mortgages
• private lenders will usually only lend on more marketable properties (ie vacation properties)

Caribbean Private Mortgage Lenders

Private lenders are usually not as easy to find as a typical bank; often they are just individuals looking to make a better return on a secure investment. We deal with a number of private lenders in the Caribbean, meaning we are more likely to be able to fund your loan than you can source on your own. Obviously if a bank mortgage is an option (ie you have a lot of time, patience and can meet the stringent banking standards), this will be your best option, however bank mortgages do not work for everyone. By talking to our Caribbean brokers, we can assist you in determining the right options for you and your financing needs here in the Caribbean.

Here are a few of the requirements for our private mortgages:

• Generally we don’t fund over 50% of the value of the property
• interest rates usually start at 8%
• We don’t consider loans under $100,000
• We generally only lend on properties in the ‘tourist’ zones (more marketable areas)

In the Caribbean, private mortgages are a much more common option than you would find in North America or Europe. Due to the poor institutional lending options that exist, clients find non banking mortgage options quicker and easier than the banks in the region. Contact us today to see if a private mortgage in the Caribbean may be right for you.