Real Estate Financing and Mortgages
Financing of Dominican Republic real estate is easily arranged.
Borrowing through local Banks
One way to finance your real estate investment is to talk to one of the Banks over here, when in the country.
The Banks will consider lending up to around 80% on the purchase price subject to their terms and conditions.
Real Estate Loans are available on land, villas, apartments and construction. No lower limit to the amount loaned.
The Bank will need insurance on both the property and the borrowers’ lives. Proof of income needed, in any currency. Total time needed from completing documents to receiving loan: 3 – 4 weeks. Interest rates are around 9.5% and it should be noted the borrower pays the Bank legal fees
Using a professional Mortgage Broker. Mortgage Innovations Dominican Republic. A Canadian Company
For the First Time…
Innovative, affordable mortgage financing is available in the Dominican Republic. Borrow up to 80% of the value of the property. Buy your retirement home, invest in rental property, or make the move of your dreams with the help of long amortizations (long term mortgages), excellent rates, and an experienced, professional mortgage broker.
What is Available?
Fixed DR 15-Year Program
• Interest rate fixed for 5-year U.S. dollar loan
• Amortized over 15-years
• Structured as an adjustment off of the FHLB (currently at 5.3%). Adjustment is 3.5%. (This is currently and effective interest rate of 8.8%)
• Maximum loan-to-value is 70%
• Maximum loan amount is $1,250,000.00
Fixed DR 20-Year Program
• Interest rate fixed for 10-year U.S. dollar loan
• Amortized over 20-years
• Structured as an adjustment off of the FHLB (currently at 5.3%). Adjustment is 4.0%. (This is currently and effective interest rate of 9.3%)
• Maximum loan-to-value is 70%
• Maximum loan amount is $1,250,000.00
Variable DR 20-Year Program
• Variable 20-year U.S. dollar loan
• Amortized over 20-years
• Structured as an adjustable rate mortgage with a start rate of 8.5%
• 2.0% rate cap and the loan adjusts annually
• Maximum loan-to-value is 70%
• Maximum loan amount is $2,000,000.00
Exceptions to both loan-to-value and loan amount are given on a case by case basis.
What Do You Need from Me?
The documentation required to obtain a Dominican Republic mortgage is similar to what’s needed in Canada, the UK or the United States. Lenders are looking for the following:
• 2-years of personal income confirmation (employment letters, income tax forms, Notice of Assessment (Canada))
• If self-employed, 2-years of corporate financial statements
• Consent to obtain your credit report(s)
• Confirmation and source of your down payment
What are My Costs?
There is a one-time placement fee of 5% of the mortgage value. This 5% can be added on to the mortgage balance. In addition, there will be an appraisal required to determine the property’s value. This will be approximately $500.00.
For Your Convenience…
Your mortgage application can be processed electronically and does not require your attendance at any bank branch. All information is collected via secure means and your privacy and personal information is protected. Documents can be signed via fax.
http://www.westindies-realestate.com/real-estate-financing.html
http://www.westindies-realestate.com/dominican-republic-mortgage-application.pdf
http://www.westindies-realestate.com/real-estate-mortgage.html
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