financing with scotia bank in north america for property in dom rep

[bolo777]

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.

I have a project built in Bavaro and fully rented. Several of my tenants have asked about buying. Please have him contact me.

 

[nudel1]

Hi,
I have another thread going, in which I have been seeking similar information on raising funds in the DR to purchase property. There is some great information and advice on that thread.

As a UK citizen, I have tried Scotiabank and Banco Popular, getting through a full (online) mortgage application only to be told at the last page that Scotiabank only offer this service to Canadian citizens, and Banco Popular would not even let me enter a LTV figure of over 50%. European Banks are currently lending up to 95% on purchases in major European cities to residents of any country.

Why it is so difficult to raise regular mortgage finance for property in the DR? (For UK citizens, anyway)

 

[paradise07]

Canadian buying in Punta Cana

I am so glad that I looked at this thread...cause I am facing the same dilemma.

I am looking to buy a house in Pueblo Bavaro and am looking for financing from a local bank here. I do have 1 property in Canada, but not enough equity to draw on.

With that said, what are the chances with a local bank like Popular or Scotiabank ? Is it better to work with a mortgage broker ?

And secondly, I was wondering if this existed here as well..In Canada, when there are new projects being built, often the developer already has a financial institution in place that is willing to offer financing fo the specific project...Is that the case here that a local bank would offer ofertas?

ANY advice would be more than appreciated !

 

[marklaw01]

Colleen, please send me a PM. Would like to discuss financing with you husband.

 

[DRob]

Hi,

As a UK citizen, I have tried Scotiabank and Banco Popular, getting through a full (online) mortgage application only to be told at the last page that Scotiabank only offer this service to Canadian citizens, and Banco Popular would not even let me enter a LTV figure of over 50%. European Banks are currently lending up to 95% on purchases in major European cities to residents of any country.

Why it is so difficult to raise regular mortgage finance for property in the DR? (For UK citizens, anyway)

Look at it from the bank's perspective:

Somewhere in Europe, presumably, you've got a primary residence. The bank knows 1) the property, 2) the market, 3) the stability of the local/provincial/national/regional government and economy, and 4) can reasonably predict valuation trends.

In DR, however, they know that most who buy property see it as expendable. There have been a few posters that talk of shuttering - not selling - their houses in their native countries. The bank knows that you'll do virtually anything to keep from losing your primary residence, including walking away from a vacation house. You may plan to live there, but the bank still sees it the same way. The best way to keep you honest - and paying the mortgage - is for you to dump a significant amount of your own money into the project.

Also, they also know that far more houses are bought than sold in vacation areas, and that people don't buy property, they buy sun, sand, shore, and the escapism fantasy. They're simply throwing in the house for free. Which means that people tend to stop being reasonable and start overpaying. Most banks typically require you to put down 5-20 percent of a property's true value for primary residences. Higher LTV's are typically reserved for investment/vacation properties, or properties which have been overpriced. Therefore, if a bank is only willing to put down half for a house, that should tell you something.

DRob:glasses:

 

[cobraboy]

Look at it from the bank's perspective:

Somewhere in Europe, presumably, you've got a primary residence. The bank knows 1) the property, 2) the market, 3) the stability of the local/provincial/national/regional government and economy, and 4) can reasonably predict valuation trends.

In DR, however, they know that most who buy property see it as expendable. There have been a few posters that talk of shuttering - not selling - their houses in their native countries. The bank knows that you'll do virtually anything to keep from losing your primary residence, including walking away from a vacation house. You may plan to live there, but the bank still sees it the same way. The best way to keep you honest - and paying the mortgage - is for you to dump a significant amount of your own money into the project.

Also, they also know that far more houses are bought than sold in vacation areas, and that people don't buy property, they buy sun, sand, shore, and the escapism fantasy. They're simply throwing in the house for free. Which means that people tend to stop being reasonable and start overpaying. Most banks typically require you to put down 5-20 percent of a property's true value for primary residences. Higher LTV's are typically reserved for investment/vacation properties, or properties which have been overpriced. Therefore, if a bank is only willing to put down half for a house, that should tell you something.

DRob:glasses:

^^^100% spot on, and a great ananysis.^^^