Dominican Republic Real Estate Financing

Financing is easily arranged for purchasing property over here.

One way would be 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. 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

The other would be to use a professional mortgage broker and full details are to be found below.

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.

Download Mortgage Application PDF

Click To Begin Download

How Do I Get Started?

Steps to Mortgaging Your Property in the DR…

Contact us! The friendly, helpful people at West Indies Connections, can be reached at 1.780.474.7900 or via email to: mvalerio@shaw.ca. We are always happy to explain the mortgage process and offer options that will work best for you. Buying property in a foreign country comes with many questions and concerns. We are experienced brokers and can help you wade through the process successfully.
In order to begin the process of getting a mortgage, an application needs to be filled out by you, the purchaser(s). This form includes basic information regarding your employment and financial situation, where you live, birth date, social insurance or social security number, etc. You can begin this process even before you put an offer in on a property by obtaining a pre-approval. This is a great way to determine what you can afford, what your payments will be, and helps you narrow down your property search, before you commit to a property.
Start gathering pertinent information required by the lender (employment letters, tax info, account statements, etc.)
Receive an all-clear that your funding is approved and your Dominican lawyer has received mortgage instructions from the lender.
Get your keys!