Mortgage interest rates drop

Dolores

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These are the best days to get a mortgage. Listin Diario reports that the banks are lending for home mortgages at 9% rates. This is down from 11.12% in the pre-pandemic year of 2019.



Listin Diario reports that banks lent at 9.01-9.36% in 2019 and 2020. It says that in the first week of September, banks were lending on average at 9.68%. There have been loans processed at 9.22%.



Read more in Spanish:Listin Diario



10 September 2021

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Kipling333

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Jan 12, 2010
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Extremely high rates for home mortgages in the DR when the best you can receive on a certificado de banco is about 6%. Compared to most European countries where the mortgage rate is about 2.5% to 3 % and about the same in the USA.
 
Jan 9, 2004
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Extremely high rates for home mortgages in the DR when the best you can receive on a certificado de banco is about 6%. Compared to most European countries where the mortgage rate is about 2.5% to 3 % and about the same in the USA.
Risk/Reward........and of course the spread between what they pay for deposits and what they charge to loan it out.

High default rates on loans there and a peso that usually depreciates faster than most reserve currencies (Euro/USD)=higher rates on loans overall.........not just mortgages.


Respectfully,
Playacaribe2
 

Kipling333

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It certainly is a good time in many countries because I can only see interest rates going up. I was looking at rates in New York from various well known lenders over a 20 year period with fixed rate and 2.5 was available if you had a 20% deposit. In the DR , the banks rip everyone off and I do not think there is a secondary market here. I also think with construction material costs rising so steeply ,the prices of existing houses here are as a general rule going to rise faster than normal. I can not believe the prices of jerry built homes in la Romana.
 

johne

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Jun 28, 2003
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I'm not sure what crap you are eluding to. Could you be more specific?
Yes. From the OP, quote:" these are the best days to get a mortgage...banks are lending at 9%". How is that true? Since we have shut down talk of the US etc. I can't respond further to substantiate my opinion.
 
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melphis

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Apr 18, 2013
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Thanks for the clarification. Those rates are ridiculously high compared to the rest of the world. When we sold are condo we discuss doing some private financing with a new buyer but when you realize how hard it is to evict someone in the DR we scrapped that idea.

Our theory is that if you can't afford your beach dream up front you probably can't afford it over a few years either.
 
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AlterEgo

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I may be wrong, but I think those 9% rates are only valid about 3 years, then you have to renegotiate the rate. 😳
 

johne

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Jun 28, 2003
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Thanks for the clarification. Those rates are ridiculously high compared to the rest of the world. When we sold are condo we discuss doing some private financing with a new buyer but when you realize how hard it is to evict someone in the DR we scrapped that idea.

Our theory is that if you can't afford your beach dream up front you probably can't afford it over a few years either.
This!
 

johne

Silver
Jun 28, 2003
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I may be wrong, but I think those 9% rates are only valid about 3 years, then you have to renegotiate the rate. 😳
Yikes. Hence my comment "fraud". OK, maybe a bit dramatic but....just saying how can you survive??