USD$ Mortgages in Barbados…
There are two options when it comes to local mortgages; USD$ offshore mortgages & local BBD$ mortgages. In this blogpost we are going to be sharing the details on USD$ Mortgages. There are 2 banks which offer this service:
RBC - Royal Bank of Canada
FCIBC - First Caribbean International Bank
These two banks are local banks that have an offshore sector within the banking industry which is how they have USD$ mortgages readily available for non-nationals & non-residents. As you can imagine there are a few requirements in getting a USD$ mortgage, please see the list as follows:
2 forms of Government issued identification (passport, drivers license or ID)
Proof of foreign income. This is to make sure you can repay the mortgage. You can use Income Tax Returns or a Job Letter.
Current personal state of affairs
If you’re purchasing as a company then an audited financial statement will be requires by a reputable chartered accounting firm.
Bank references
Total debt servicing ratio not to exceed 40%
Sales agreement and current valuation report on the Barbados property you intend to purchase
Approval by The Central Bank of Barbados
We have contacts within each institution that we can put you in contact with to discuss the accurate rates, terms & all other details about how you can apply for a USD$ mortgage. Please see an overview on what you can expect in terms of numbers:
Minimum loan value is USD$250,000
Bank’s attorney fees are usually between 1%-2.5% +VAT of 17.5%
Administration & Arrangement fees are usually about 1%
Repayment Period is between 5-25 years
The Loan-To-Value (LTV) is 60%-70% on a property below USD$2,500,000 & 50% if the property purchase price is over USD$2,500,000
LIBOR Rate is the standard rate used + between 2.5%-4% (this rate varies according to the market forces, your chosen institution will bettwe direct you when it comes to your USD$ mortgage).
Looking to purchase your first property in Barbados or maybe expand your existing portfolio on the island? Kindly email our Head if Sales, Emilee at emilee@barbadosvillaservices.com & she will be in touch & if you’d like to meet with a mortgage finance specialist for more information, kindly state that in the email so we can schedule a meeting accordingly.
