James,
Based on your question,I will assume that you wish to finance the purchase of a home or vacation property. First off, it can be very difficult for you to obtain a mortgage if you are a non resident and the post by Delores is accurate with regards to local interest rates in Pesos. Dominican banks offer mortgages in Pesos at anywhere from 20% and up. Credit card interest is 35% to 40% when annualized. Certainly not a bargain. If you want a business opportunity, open a bank in the DR, god knows they could use the competition.
If you are a non resident and are concerned about financing a property purchase, I can suggest a Real Estate firm in the north coast (Sosua, Cabrette, Puerto Plata areas) that will offer financing in US dollars from 8% to 12%. Naturally, they are interested in selling some of their property listings in the process, so this only applies if you go through them for a property purchase. The terms are 10% down.
I am also currently working with a real estate devloper in the Santo Domingo area that is offering US dollar financing via one of the local banks at 15%. This is a new idea for him, but I convinced him to consider a mortgage program for non-residents and expats. I am not excited about the interest rate, but considering the alternative in pesos it is a better deal.
Another idea is to consider a for sale by owner property or trying to get the seller to hold the mortgage. Some will gladly do so, especially if you want to make monthly payments in dollars.
For additional information regarding real estate opportunities in the Dominican Republic, Please contact Ascot Advisory Services Tel. 809-334-5387 or 809-293-9427
