Getting a mortgage in DR

Jencarnacion

New member
Jul 21, 2022
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5
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Bavaro
I am in process of obtaining a new construction property in DR. I have heloc in usa to. finance half the property and would like mortgage in DR to finance the other half. How do the credit. checks in dr work? do they look at us accounts only? is anyone familiar with obtaining a dominican mortgage that can offer some tips? thanks.
 

tripp789

Member
May 4, 2018
52
8
18
I got one from Banco Popular in 2020. Rates are higher than in the US. It’s hard to get fixed rates for long terms (over 5 years) and without prepayment penalties.
I also contacted ScotiaBank and was able to beat them up against each other to get a lower rate.
The process takes a long time here, so don’t dally.
 

Jencarnacion

New member
Jul 21, 2022
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3
Bavaro
Tripp, best rates i am seeing right now is in the 5-6% range for interest and max term is 15 years (us dollars of course). How long did the mortgage process take you? I am currently having to wait on the construction to finish so i can get the process going, banks seem to not want to even talk to me until the house is built. I am even considering taking out another heloc in the states but would rather spread the loan risk out overseas.
 

SKY

Gold
Apr 11, 2004
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Banks here want ZERO risk. You have a house built worth a certain amount you can get a mortgage worth less than half of what it is worth. "No ticky no laundry".........................
 

windeguy

Platinum
Jul 10, 2004
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Tripp, best rates i am seeing right now is in the 5-6% range for interest and max term is 15 years (us dollars of course). How long did the mortgage process take you? I am currently having to wait on the construction to finish so i can get the process going, banks seem to not want to even talk to me until the house is built. I am even considering taking out another heloc in the states but would rather spread the loan risk out overseas.
Where are you seeing that deal? What bank? Please post a link. I saw 13.5% on Banco Popular, I think in DR pesos for 3 years maximum.

Can someone that is not a legal resident or citizen of the DR even get a loan from a DR bank?
 

Jencarnacion

New member
Jul 21, 2022
8
5
3
Bavaro
Where are you seeing that deal? What bank? Please post a link. I saw 13.5% on Banco Popular, I think in DR pesos for 3 years maximum.

Can someone that is not a legal resident or citizen of the DR even get a loan from a DR bank?
Winde, us dollar loans generally have better rates and terms. Peso loans for dominican residents, forget it, they have 13% + interest and shorter terms. They prefer investors from abroad. Scotia bank and baco caribe seem to have the better options.
 
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windeguy

Platinum
Jul 10, 2004
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Winde, us dollar loans generally have better rates and terms. Peso loans for dominican residents, forget it, they have 13% + interest and shorter terms. They prefer investors from abroad. Scotia bank and baco caribe seem to have the better options.
So you can get a US dollar loan in the DR and not be a legal resident here? What do they use for collateral in such a case?
 

Jencarnacion

New member
Jul 21, 2022
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3
Bavaro
So you can get a US dollar loan in the DR and not be a legal resident here? What do they use for collateral in such a case?
The property you are buying in the DR is collateral. I am not sure if they put any liens on other property outside the country or not.
 

SKY

Gold
Apr 11, 2004
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NO bank in the DR will give any mortgage without collateral. Does not matter if you are a citizen or "The Pope...........
 

JD Jones

Moderator - Covid 19 in DR & North Coast
Jan 7, 2016
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Banks here want ZERO risk. You have a house built worth a certain amount you can get a mortgage worth less than half of what it is worth. "No ticky no laundry".........................
They typically will finance up to 70% of the appraised value.
 

2020

Active member
Apr 10, 2012
373
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Las Terrenas
Last year in Las Terrenas, I spoke with numerous real estate "brokers*" (* there is no real estate licensing in the DR, so I use the term loosely).

All of them said they never had a client get a real estate mortgage.

Some of them have been in business for over 20 years.
 

Farmer

Member
Dec 2, 2003
132
24
18
We talked to the general manager of a savings and credit institution who compared his rates to what we could get in the US. Not even close. We did a cash out loan using our home in the US as equity. Don't tell a US bank you are buying property overseas as they can't get to it as collateral. Just close on your home equity loan and bring a cashier's check with you. It was accepted here in our case.
 

Tonchi

Active member
Nov 17, 2015
283
156
43
I went through many headaches and got a loan just 2 months ago.. Best advice is this.
Go to Scotia Bank. They are at least professional..
3.5% for 3 years... 4.5% for 5 years,,, then adjusts
They have a much smaller 2% prepay penalty also.

DR banks are not.

Other banks will surprise you with requirements that never exist in USA.
They wont tell you that you are approved for a certain amount, and lower that amount, twice.
Most banks will make you buy LIFE insurance..
Within 1 week of closing the told me I had to get life insurance and I had to pay $500 for that medical exam.

Second piece of advice is that you should have multiple applications in the works, in case one goes sideways like it did for me.
My problem was I didnt have any time to make the Scotia application.
 

AlterEgo

Administrator
Staff member
Jan 9, 2009
21,492
3,739
113
South Coast
I went through many headaches and got a loan just 2 months ago.. Best advice is this.
Go to Scotia Bank. They are at least professional..
3.5% for 3 years... 4.5% for 5 years,,, then adjusts
They have a much smaller 2% prepay penalty also.

DR banks are not.

Other banks will surprise you with requirements that never exist in USA.
They wont tell you that you are approved for a certain amount, and lower that amount, twice.
Most banks will make you buy LIFE insurance..
Within 1 week of closing the told me I had to get life insurance and I had to pay $500 for that medical exam.

Second piece of advice is that you should have multiple applications in the works, in case one goes sideways like it did for me.
My problem was I didnt have any time to make the Scotia application.
Ah, I didn’t realize this was commonplace. We contracted with a Dominican woman living in Spain who wanted to buy a property we’re selling. Bank sent out their appraiser, offered her a mortgage and approved the amount she requested. A month later they reduced it by 2 million pesos, and she didn’t have that much extra liquid cash. End of sale.
 

keepcoming

Moderator - Living & General Stuff
May 25, 2011
3,147
471
83
So, they are able to reduce the original loan amount approval? Just curious as we are selling our place in Santo Domingo (again, we took it off the market during Covid). We have had 2 serious offers, but loan approval is needed. We are not in a rush but do not want to lose offers while waiting for approval.