Financing

The simplest way to purchase Caribbean property would be to pay cash for it, but if your savings don’t add up, you can explore one of these options: Take a HELOC or refinance your current mortgage or get financing from local Bank, preferably a multinational one that offers cross-border services. The financing is straightforward, especially when one works with an international bank like Scotia Bank. Typically, you will need to put down a minimum of 30% of the property cost. There is a verification process that will need to happen prior to the approval of your mortgage, and this process can take some time. Usually getting a mortgage is based on your personal income and your credit history in the country of your permanent residence. Typical Mortgages are done in United States dollars and have 25 years amortization period. Mortgage Interest rate varies from one country to another, but for example, in the Dominican Republic today, can range to be as low as 5%, which is lower than mortgage rates in the USA or Canada

The most common scenario for the pre-construction purchase is when the buyer uses a credit line secured by real estate in the country of residence and pays for the purchase from this credit line. After construction completion, you will have the ability to refinance the property at a local bank and return funds back to the credit line

After the completion of the construction, you have the opportunity to receive loans from the market value of the property and not from the purchase price, which often makes it possible to finance property one hundred percent loan to value of the purchase price

In most cases of the purchase of investment property, income from short-term rentals will cover the mortgage payment and maintenance costs of the property and you will end up with positive cash flow.