- Thread starter Jasper
- Start date
financing with scotia bank in north america for property in dom rep
Just an FYI
I contacted Scotiabank via email to get the logistics of getting a mortgage for property in the DR (I am a US citizen). I was advised that I would need to contact the local office in Santo Domingo.
I'll copy and paste the information I was given below if anyone is interested.
****************************************************
Dear Ms. ******,
With reference to your inquiry about obtaining a mortgage for a
vacation home in the Dominican Republic while residing in the United States;
Ms. ******, the domestic division of Scotiabank finances properties in
Canada, to borrowers that reside in Canada.
To obtain financing, the lender normally requires that the borrower
resides in the same country as the home being purchased, due to the
property being the security for the loan.
To find out more about Scotiabank products and services available in
the Dominican Republic, please contact:
Nicole Reich de Polignac
Senior Vice-President & General Manager
Call Centre Phone: (809)567-7268
Fax: (809) 567-5732
Mail: Apartado 1494
Aves. John F. Kennedy and Lope de Vega
Santo Domingo, Dominican Republic
drinfo@scotiabank.com
SWIFT: NOSCDOSD
We trust we have handled your inquiry today to your satisfaction.
Ms. ******, thank you for contacting Scotiabank.
Regards,
Taz Alladina,
Email Customer Service Specialist,
Customer Contact Centre,
Scotiabank
I contacted Scotiabank via email to get the logistics of getting a mortgage for property in the DR (I am a US citizen). I was advised that I would need to contact the local office in Santo Domingo.
I'll copy and paste the information I was given below if anyone is interested.
****************************************************
Dear Ms. ******,
With reference to your inquiry about obtaining a mortgage for a
vacation home in the Dominican Republic while residing in the United States;
Ms. ******, the domestic division of Scotiabank finances properties in
Canada, to borrowers that reside in Canada.
To obtain financing, the lender normally requires that the borrower
resides in the same country as the home being purchased, due to the
property being the security for the loan.
To find out more about Scotiabank products and services available in
the Dominican Republic, please contact:
Nicole Reich de Polignac
Senior Vice-President & General Manager
Call Centre Phone: (809)567-7268
Fax: (809) 567-5732
Mail: Apartado 1494
Aves. John F. Kennedy and Lope de Vega
Santo Domingo, Dominican Republic
drinfo@scotiabank.com
SWIFT: NOSCDOSD
We trust we have handled your inquiry today to your satisfaction.
Ms. ******, thank you for contacting Scotiabank.
Regards,
Taz Alladina,
Email Customer Service Specialist,
Customer Contact Centre,
Scotiabank
Last edited:
DR Mortgage financing
That is a great link for Scotia Bank. If it helps anyone, my husband is both a Canadian and DR mortgage broker and can do lending in both countries. He has very good rates and amortizations for DR properties with two DR banks as well as Scotia. I'm sure he's be happy to help anyone wanting to finance. The rules are tougher and you have to have lots of patience to financing in the DR, but it can be done.
That is a great link for Scotia Bank. If it helps anyone, my husband is both a Canadian and DR mortgage broker and can do lending in both countries. He has very good rates and amortizations for DR properties with two DR banks as well as Scotia. I'm sure he's be happy to help anyone wanting to finance. The rules are tougher and you have to have lots of patience to financing in the DR, but it can be done.
ColleenV, it will be a good thing for your husband to advertise on DR1 if he is not doing so already.
ColleenV, I'd love to learn more about financing in the DR. Mind if I contact you by PM?
Chris, I think that is an excellent idea, ColleenV's husband should definitely advertise on DR1!
Chris, I think that is an excellent idea, ColleenV's husband should definitely advertise on DR1!
I would be interested to see what their rates are. I would suspect they are the average Dominican rates (16% and up).
BTW you can do this with pretty much any bank in The DR. For instance you can get a mortgage or a construction loan at Banco Popular. It just takes a couple of months if you're not a Dominican citizen. What would be a killer business is if a bank can offer loans to buy property in The DR at US or Canadian rates...I haven't seen anyone do that yet.
BTW you can do this with pretty much any bank in The DR. For instance you can get a mortgage or a construction loan at Banco Popular. It just takes a couple of months if you're not a Dominican citizen. What would be a killer business is if a bank can offer loans to buy property in The DR at US or Canadian rates...I haven't seen anyone do that yet.
All the large DR banks offer mortgage loans to Americans, Canadians and others at rates between 7-10%, with terms from 5 to 20 years, and 20 or 30% down (70-80% LTV). Most also have at least one person who speaks english to help you. The required documentation is usually less than a standard US loan, but takes quite a bit longer to close, and they have been known to drag it out to the point where the buyer decides to move on... but it can definitely be done, especially with the help of a broker. I can confirm that Scotia, BancoLeon, BHD, Reservas and (I believe) Progreso all offer these loans.
A suggestion
In the U.S. for a couple of points more you would get locked up for usuary.
Kidding aside, I couldn't see why everybody got all excited about this news when I read thread yesterday. If in fact this is a second house the cheaper way I suppose would be to re-fi your first house or take an equity loan on the first house and use those fund s against the DR property.
In fact then you would create the perfect storm and join the rest of the people facing foreclosure.Just kidding-I hope.
Good luck
john
In the U.S. for a couple of points more you would get locked up for usuary.
Kidding aside, I couldn't see why everybody got all excited about this news when I read thread yesterday. If in fact this is a second house the cheaper way I suppose would be to re-fi your first house or take an equity loan on the first house and use those fund s against the DR property.
In fact then you would create the perfect storm and join the rest of the people facing foreclosure.Just kidding-I hope.
Good luck
john
Is a home that is bought in DR considered Second Home/Vacation Home in US tax terminology, assuming one already does not have a second home in US. Are mortgage interest paid on the home equity loan from the primary residence tax deductible, since the proceeds are used to buy second home?
I don't think it matter whether they consider it a second home or not as you will be taking your deductions from the interest paid on the home equity loan. When the banks (should say IF) give you the second on your house in the US they don't care what you do with the money.
john
Right, I understand that the bank does not care what I do with the home equity loan, I just wanted to confirm that homes in DR can be considered as second/vacation home by IRS defn.
With home equity loans about 5-6%, this may be an excellent option to buy, assuming you have equity in your primary residence.
With home equity loans about 5-6%, this may be an excellent option to buy, assuming you have equity in your primary residence.
Refi's and equity lines on US property are the traditional ways people have been financing property outside of the country...but US banks are (obviously) becoming much stricter with lending guidelines.
I would also like to hear the answer to the question as to whether a second home outside the US is considered the same as a second home in the US. I would think it's a pretty simple question for a tax preparer.
I would also like to hear the answer to the question as to whether a second home outside the US is considered the same as a second home in the US. I would think it's a pretty simple question for a tax preparer.
Further to this point
john
I would like to hear if it could be designated as a real estate investment property and what the US guidelines would be. That opens some other possibilties to people. (In my case it doesn't matter because my business is real estate investing and all my deductions flow this way.) For the average person if you showed some income you (I imagine) could deduct your expenses for travel to the DR. (ain't that a nice thought?) And maybe depreciation? Don't know and like you said would like the answer from a qualified person.
john
When I asked about Financing in Jarabacoa
Good afternoon.
Thank you for contacting Scotiabank.
Regarding your inquiry, I inform you that currently we have no financing available in Jarabacoa. Our Non Resident Vacation Home Program request a vacation home located at a developed project such as golf and beach residences.
If you need any further information, do not hesitate to contact us.
Regards,
____________________________________
Ailyn Campos.
Internet Banking Officer
Scotiabank - Centro de Contacto
Tel.: (809) 545-8000 Ext.8955
Fax.: (809) 262-1109
E-mail: ailyn.campos@scotiabank.com.do
Good afternoon.
Thank you for contacting Scotiabank.
Regarding your inquiry, I inform you that currently we have no financing available in Jarabacoa. Our Non Resident Vacation Home Program request a vacation home located at a developed project such as golf and beach residences.
If you need any further information, do not hesitate to contact us.
Regards,
____________________________________
Ailyn Campos.
Internet Banking Officer
Scotiabank - Centro de Contacto
Tel.: (809) 545-8000 Ext.8955
Fax.: (809) 262-1109
E-mail: ailyn.campos@scotiabank.com.do
My quick take on this
My quick take on this is -SB will finance you with and through projects that they (SB) has financed for a major builder.
Don't know only my guess.
Reminds me of a number of years ago when I went to Citi bank in NYC and inquired about setting up a relationship with Citibank in SD.
Went to CB in SD and they looked at me like I was from Mars and told me flat out these were like different entities and not the sister banks one would think.
john
My quick take on this is -SB will finance you with and through projects that they (SB) has financed for a major builder.
Don't know only my guess.
Reminds me of a number of years ago when I went to Citi bank in NYC and inquired about setting up a relationship with Citibank in SD.
Went to CB in SD and they looked at me like I was from Mars and told me flat out these were like different entities and not the sister banks one would think.
john