Question Re: Mortgages in DR

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Martin Stoik

New member
Nov 13, 2013
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Hi Everyone,

I'm wondering if anyone has experience with this matter in Dominican Republic.

If a Dominican has a mortgage on a property, and say the mortgage is for 15 years, can the Dominican 'pay down or pay off the principle early' without penalty?

Or are all mortgage contracts set up in a way that there's a penalty for early repayment?

THank you in advance.
 
AlterEgo

AlterEgo

Administrator
Staff member
Jan 9, 2009
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South Coast
I don't know about "all" contracts, but we wanted to pay off a mortgage on a property in the capital/SD and there was a penalty if we did.
 
M

Martin Stoik

New member
Nov 13, 2013
7
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0
Thanks for your feedback.

As you can appreciate, I'm wondering if there's any value in setting up a trade where I buy a house in the Capital on leverage, and simply speculate that the value of the peso decreases. Hence once it reaches a specific threshold, to pay off the mortgage.

As such, if anyone else can provide any insight on if paying principle or a house off 'early' incurs a penalty in DR, I would greatly appreciate the local knowledge.

Thank you
 
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MJSantoDomingo

Bronze
Apr 13, 2011
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It depends on the mortgage company and what their policy is about putting an "early payoff" penalty in the contract.
 
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Eugeniefs

New member
Jan 24, 2008
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I would say that the mortgages here are the same as anywhere around the world.. it all depends on the company you use. The majority of providers will force you to incur a fee because they are losing all the interest you would be paying over 15 years etc. I suggest that you talk to each company and get them to give you a quote etc., on whether you pay off your mortgage over the time specified period or if you are able to pay it off early. Again they may say if you pay it off within 5 years you have to pay 'x' and if you pay it off within 10 years you have to pay 'y' as penalties. Whatever you do make sure you get it in 'writing', something that you can prove or have it put into your contract.
 
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