Caribbean Mortgages
Caribbean Mortgages Simplified
Making Sense of it All
Bank financing in the Caribbean can be a challenge. Lenders are lending to the right clients on the right properties, but the process can be slower and more tedious than you may be used to at home. Interest rates are becoming more competitive and largely based on LIBOR or Prime Rate with some percentage mark-up.
All banks vary their approach to lending, which is why it is important that you obtain the right advice. Generally the terms are maximum 15 years and a maximum Loan to Value ratio of 65%.
This large Loan to Value ratio is the biggest difference for many clients as they are not used to having to make such a large down payment.
Each Island is Different
Application criteria varies from island to island. For example, in Barbados, you have to have the Central Bank of Barbados approval. In St. Lucia you need an Alien Land License. The market is very conservative and the applications are carefully scrutinized and need to be of high caliber.
These markets do not provide interest only, buy-to-let, or flexible mortgages.
Applications take time to process and if they are not presented with all the required information, the process will take longer. All mortgages require legal representation and the mortgagee also has the legal representation acting on their behalf. The applicant must pay his/her legal fees and the bank legal fees. Quotes for these services can be obtained upon request.
Also all mortgage applications are subject to a satisfactory valuation report approved by the lender and paid for by the applicant.
