Obtaining a Mortgage as a Nonresident DR Citizen

[Alltimegreat]

Could anyone tell me whether a tax-nonresident Dominican citizen (living primarily outside of the DR) would be eligible to obtain a mortgage for a house or condo in the DR?

Thanks in advance for the insight!

 

[Big]

if you have appropriate assets that the/a back can confirm then yes. The rates and terms are different than the States

 

[Northern Coast Diver]

It is not difficult to obtain a mortgage here. The hard part will be to pay the interest. Rates here are 16% and up.

 

[bob saunders]

Current mortgage rates in the DR ARE BETWEEN 5.95 -7% with 40% down payment required. Current personal loans are 8-11 % . The process is pretty similar to North America , just in spanish.

 

[Radical]

Current mortgage rates in the DR ARE BETWEEN 5.95 -7% with 40% down payment required. Current personal loans are 8-11 % .

Fixed in some cases but just for a year, thereafter the APR will skyrocket to very high interest.

 

[bob saunders]

Fixed in some cases but just for a year, thereafter the APR will skyrocket to very high interest.

You have more or less the same options as north America. You can lock in for 3 years, 5 years, or even 15 years. Like anywhere you have to do your due diligence. I currently have a personal loan at 8 percent interest.

 

[malko]

You have more or less the same options as north America. You can lock in for 3 years, 5 years, or even 15 years. Like anywhere you have to do your due diligence. I currently have a personal loan at 8 percent interest.

Sorry, I don't math very well.

What is a personal loan ? A loan that lets you do whatever you want with your money ?

And is that 8% per year ?

 

[JD Jones]

Current mortgage rates in the DR ARE BETWEEN 5.95 -7% with 40% down payment required. Current personal loans are 8-11 % . The process is pretty similar to North America , just in spanish.

Don't forget the loan quantity is based on the appraised value of the property done by the bank's appraiser.

 

[bob saunders]

Sorry, I don't math very well.

What is a personal loan ? A loan that lets you do whatever you want with your money ?

And is that 8% per year ?

Yes that is 8 percent per year, 1,000,000 pesos in my acct. I got the loan because my wife wants me to build up my credit and she doesn't want me to spend my $US. I have a decent credit line in Canada but the money isn't convenient.

 

[Africaida]

Current mortgage rates in the DR ARE BETWEEN 5.95 -7% with 40% down payment required. Current personal loans are 8-11 % . The process is pretty similar to North America , just in spanish.

But aren't you a Citizen ?

I am sure the terms must be different for a non-resident with primary residency outside. In many countries, it would be close to impossible to get a loan or a mortgage for this scenario, I am very surprised that the DR would be any different. I could be wrong of course.

 

[Big]

But aren't you a Citizen ?

I am sure the terms must be different for a non-resident with primary residency outside. In many countries, it would be close to impossible to get a loan or a mortgage for this scenario, I am very surprised that the DR would be any different. I could be wrong of course.

you do not have to be a resident to get a home mortgage. Scotiabank does mortgages for many people that want a home or second home. Just like any bank they want to make sure they can get their hands on assets if the purchaser bails. Part of that is a big down payment

 

[Africaida]

you do not have to be a resident to get a home mortgage. Scotiabank does mortgages for many people that want a home or second home. Just like any bank they want to make sure they can get their hands on assets if the purchaser bails. Part of that is a big down payment

since I don't know any foreigner who bought a second home in the DR with a mortgage, just figured it wasn't an option.
Thanks for the info.

 

[Big]

since I don't know any foreigner who bought a second home in the DR with a mortgage, just figured it wasn't an option.
Thanks for the info.

most do purchase with cold cash, but a mortgage is a very doable option, with the requisite headaches. Scotiabank has a very comprehensive web site to assist. One thing about financing through them ( or any bank for that matter) they will make sure the title is not dirty.

 

[Radical]

You have more or less the same options as north America. You can lock in for 3 years, 5 years, or even 15 years. Like anywhere you have to do your due diligence. I currently have a personal loan at 8 percent interest.

Please cut and paste any Dominican bank offering home loans with fixed rates longer than 12 months, any?

I'll be interested myself, thanks

 

[bob saunders]

Please cut and paste any Dominican bank offering home loans with fixed rates longer than 12 months, any?

I'll be interested myself, thanks

Please gather up the energy to help yourself

 

[Radical]

Please gather up the energy to help yourself

Then please don't post something you can not back up.

I am in the process of mortgage hunting as we speak, have gone up and down the major banks and the best I've found (and my credit is stellar here and in the USA), is 7% APR fixed for just a year with Banco Santa Cruz.

Since you know for a fact, where could you please direct me to get a mortgage for less than 7% and fixed for longer than a year?

 

[bob saunders]

• Copy of identity card or passport if you are a foreigner.
• Good credit history.
• Complete the application form.
• Minimum work stability of six months in the company.
• If you are not a client of Banco BHD León, you must present a copy of the last three account statements.
• If you are a business owner or self-employed person, you need to provide a copy of your last three checking or savings account statements.
• If you are a foreigner, you must present a joint guarantor, who must meet all the previous income justification requirements.
• In case of being independent, send bank statements evidencing your income.
• Life Policy and total and permanent disability.

Banco BHD

Banco BHD

www.bhdleon.com.do

 

[Radical]

• Copy of identity card or passport if you are a foreigner.
• Good credit history.
• Complete the application form.
• Minimum work stability of six months in the company.
• If you are not a client of Banco BHD León, you must present a copy of the last three account statements.
• If you are a business owner or self-employed person, you need to provide a copy of your last three checking or savings account statements.
• If you are a foreigner, you must present a joint guarantor, who must meet all the previous income justification requirements.
• In case of being independent, send bank statements evidencing your income.
• Life Policy and total and permanent disability.

Banco BHD

Banco BHD

www.bhdleon.com.do

Thanks!

I just looked the info and nowhere does it has any details or specific APRs with fixed terms ?

It mentions fixed terms for 10, 15 and 20 years but zero info as far as the APRs?

 

[bob saunders]

Dominican Republic Mortgages • Go Punta Cana Real Estate™

www.gopuntacanarealestate.com

 

[Radical]

Dominican Republic Mortgages • Go Punta Cana Real Estate™

www.gopuntacanarealestate.com

See Bob,my replies are based on hands on experiences gathered just within the last few months (this is the time I've now been mortgage hunting), your replies are also based on articles from the internet (see link you've posted above), the same link actually backs my assertions. See below an excerpt from your link:

1. Interest Rates. Interest rates are much higher than one would typically find in the U.S. or Canada. Rates in the Dominican Republic will more than likely rest somewhere in the teens (above 10%) and may not be fixed rates. You’ll likely wind up with an adjustable rate mortgage, which means you may start off with a nominal annual percentage rate, only to see it dramatically increase throughout your mortgage term. The rates would go up if the Country’s central bank rate increases. Now of course the rate also could go down, but an adjustable APR would indeed be a risk.

These are not hands on knowledge, this is something you found posted somewhere?

My replies are a reflection of face-to-face interactions with bank representatives and banks officers due to my personal inquiries into getting a mortgage here in the DR.

Again, as of today, I've yet to find anything better than 7% APR with Banco Santa Cruz, just fixed for 12 months.

If you have solid information of any offers better than the above, I'll be seriously interested to know to take advantage of it right away. Anything else will be misleading and miss information.

Thanks!