Can I get a mortgage in Barbados?

If you’re seeking financing for your property investment in Barbados, you have various options to explore. Here’s detailed information on securing either a US dollar offshore mortgage or a local dollar mortgage for your property purchase.

Should you have any queries, our agents can offer additional details or guide you to a qualified financing specialist.

US Dollar Mortgage / Finance:

US dollar mortgages are accessible to non-nationals and non-residents through the offshore segment of the local banking industry. For precise terms and conditions, it is recommended to reach out to these institutions. However, here’s an overview of what you can anticipate:

  • Loan-to-Value (LTV) between 60% – 70% up to US $2.5 million, and 50% LTV for amounts exceeding US $2.5 million.
  • Minimum loan value is approximately US $250,000.
  • Amortization period ranging from 5 to 25 years.
  • Interest rate is LIBOR plus 2.5% to 4%, subject to market fluctuations.
  • Bank’s attorney fees approximately 1% – 2.5% plus 17.5% VAT.
  • Administration and arrangement fees typically around 1%.

Personal requirements include:

  • Demonstrated foreign income stream (Job Letters / Income Tax returns).
  • Current valuation / appraisal on owned Barbados property.
  • Personal state of affairs and, if purchased by a company, an audited financial statement from a reputable Chartered Accounting firm.
  • Bank references.
  • Total debt servicing ratio not to exceed 40%.
  • Approval by The Central Bank of Barbados.
  • Sales agreement and current valuation report on the intended property purchase.
  • Two forms of Government-issued identification.

Institutions offering US Dollar Mortgages:

  • The Royal Bank of Canada.
  • First Caribbean International Bank.

Contact us for more information and to speak with our Mortgage Specialists today.

Local Barbados Dollar Mortgage / Finance:

When applying for a local Barbados dollar mortgage, take note of the following:

Documentation required:

  • Proof of identification (Barbados ID or Passport).
  • Confirmation of residential address (e.g., utility bill).
  • Job letter and recent pay slip (for employees).
  • Financial statements (for self-employed individuals).
  • Bank statements, particularly for new customers.
  • Barbados property sales valuation.
  • Contractor’s estimate if building or renovating.
  • Agreement of property sale from the vendor (if applicable).

Terms and conditions (may vary):

  • Interest rates between 6 – 8.5%, subject to local market changes.
  • Mortgages covering up to 95% of the total amount; some institutions offer 100% coverage.
  • Housing Service Ratio (HSR) not exceeding 40% of gross personal income.
  • List of assets and collateral.
  • Evidence of full life insurance.
  • List of cash and bonds.
  • The property itself can be used as collateral.

Terms can vary, including up to a 10% deposit, up to 35 years to repay, and typically requiring repayment before reaching 70 years of age. Flexibility exists with most institutions, and it’s advisable to consult with a mortgage finance specialist to determine the ideal term for your loan.

Contact us for more information and to speak with our Mortgage Specialists today.

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