Getting financing in Canada for house in DR

[kdeer]

We used Guido Perdomo and he has been great. Everything went very smoothly and he explained the way things are done in the DR each step of the way.

To the OP not sure how the bank can tell you what you can or can't spend you LOC on. When we did this there was absolutely no mention of it being illegal. The bank is fully aware of what we did purchase (and where) and, in fact, the loan officer has posted the villa on a bulletin board in case anyone in the bank is interested in renting it. However, it is not classified as a mortgage, it is a home equity line of credit.

Steve, we are in the same area as you and can see the golf course from our property as well (yes it is still for sale....$675,000 US I believe). I understand what you are saying as the value of our property (equity) has also increased since we first purchased it in May. It also seems to be a good area for rentals as we have been quite fortunate in that area as well

 

[Fiesta Mama]

Thank you all for your helpful information.

If using Guido Perdomo or Fabio Guzman for the real estate transaction, what is the approxmate cost (to the seller of course). Also, I am a Canadian citizen and my husband is a Dominican citizen (however, both residents of Canada) - what are the tax pluses or minuses? Would we get a tax break with our situation either way as a foreigner or as a citizen?

...sorry for all the questions!

 

[AnnaC]

Closing costs to the buyer

It depends on the price of the property just like Canada.

Here is Mr Guzman's post on that.

Closing costs on a typical real estate transaction are as follows:

Attorney/Notary: 1.16% of purchase price (1% + 16% service tax)

Taxes: Approximately 4.4% of the market value of the property as determined by the tax authorities, not on the price of purchase in the deed of sale. (3% Transfer Tax -Law # 288-04; 1.3% Document Stamp Tax - Law # 835-45; plus minor expenses such as tax on certified check, sundry stamps and tips at the Registry).

Surveyor: $100 +, depending on the size of the property.

Title Insurance (optional): Approx. 1% of the insured value.

Incorporation (optional): $1400 + depending on the capitalization.

Here is that thread

http://www.dr1.com/forums/showthread.php?p=367139&highlight=closing+costs#post367139