Obtaining a Mortgage as a Nonresident DR Citizen

[Yourmaninvegas]

If you can afford to, most people can't.

Yes Bob.
I can afford to because I choose too.
I made the hard decisions that required sacrifice in my early financial years.
It does not matter what Tiny says about my financial knowledge.
This has led to money in the bank and financial investment accounts that allow me to pay cash for my consumer purchases.
Unencumbered ownership has value far beyond what is on the financial statement.
At least for me.
Not once have I said not to take a mortgage in your home country or 🇩🇴.
I have only suggested that for consumer purchases one should pay cash.

Thank you very much for all the informative information you have provided on getting a mortgage in 🇩🇴.

 

[PICHARDO]

Home loans in the DR are open to ALL citizens, residents or foreigners. Including companies, national or international.

The rate of interest is based on risks, not residency status. Collateral also plays a big chunk of the credit extended.

Once you have had a mortgage record with a DR bank, all future ones are a breeze.
Domestic credit is very important based on risks.
Foreigners non-residents would be asked to post higher ratios of down payments.

Many people resort to shorter term financing from Bienes Raíces lenders. These are more adept to taking higher risks as they have an easier property resell network.

Most Dominicans still prefer to buy lots and slowly build their homes free of interest. They build as they go and have no pressure to finish or datelines to meet.
Custom homes are the norm in the DR, unless it’s apartment based.
The reason why most middle class homes are well-built, is that the owners were to be the tenants. No corners are cut and material quality tends to be on the good to top notch.

Buying an apartment unit in the DR, boils down to research of the builder behind the project.
They are liable under DR Law for long term shoddy constructions were things to go wrong.

They have brands and reputation to protect.

 

[Yourmaninvegas]

Home loans in the DR are open to ALL citizens, residents or foreigners. Including companies, national or international.

The rate of interest is based on risks, not residency status. Collateral also plays a big chunk of the credit extended.

Once you have had a mortgage record with a DR bank, all future ones are a breeze.
Domestic credit is very important based on risks.
Foreigners non-residents would be asked to post higher ratios of down payments.

Many people resort to shorter term financing from Bienes Raíces lenders. These are more adept to taking higher risks as they have an easier property resell network.

Most Dominicans still prefer to buy lots and slowly build their homes free of interest. They build as they go and have no pressure to finish or datelines to meet.
Custom homes are the norm in the DR, unless it’s apartment based.
The reason why most middle class homes are well-built, is that the owners were to be the tenants. No corners are cut and material quality tends to be on the good to top notch.

Buying an apartment unit in the DR, boils down to research of the builder behind the project.
They are liable under DR Law for long term shoddy constructions were things to go wrong.

They have brands and reputation to protect.

Brother, you just hit a walk off grand slam with this post.⚾
Drop the bat. Take your home run trot.
I'll be waiting to give you a high five at the plate.
Everything you have written dovetails exactly with my personal experiences here in🇩🇴

 

[Radical]

scotiabank Mortgage Information:

​

• Maximum loan amount is 70% of appraised property value.
• Maximum finance term is 25 years.
• Interest Rate is 6.25% annually.
• Loan applicant must own a first home in Canada, US or UK
• Minimum age to apply is 21 years of age

Documents required to apply:

• Copy of passport
• Last 2 income tax statements
• Authorization to issue a Credit Bureau Report from the customer's country of residence
• Income letter, if an employee
• Evidence of assets in your country of residence (must be US, Canada or UK)
• Insurance assignment
• Property Appraisal from an authorized appraiser.
• Copy of Offer of Purchase & Sale
• Proof of down payment.

Dominican Republic Mortgages | Dominican Loans | Dominican Republic Mortgage Financing | Interest Rates Dominican Republic

Full information on obtaining a mortgage and financing in the Dominican Republic. Reasonable interest rates. How Americans get a mortgage in the Dominican Republic.

www.ocean-side-realty.com

None of this information comes straight from the Scotia Bank at all Bob, none of it.

 

[Yourmaninvegas]

None of this information comes straight from the Scotia Bank at all Bob, none of it.

If you have the straight dope from Scotiabank, I would be interested in reading it my man.

 

[Radical]

If you have the straight dope from Scotiabank, I would be interested in reading it my man.

Not sure what a "dope" is but to clarify any doubts you might have, please re-read my reply.

 

[Yourmaninvegas]

Not sure what a "dope" is but to clarify any doubts you might have, please re-read my reply.

Dope:
A word used to describe just about anything good in life, good news, a sick skateboard trick, a nice sports car, etc. Also one of the most casual yet satisfying words in modern slang. It can be used to varying levels of intensity anywhere from a casual "dope" to a mega hype "that's freaking dope man!".

Some belittle this word's meaning to purely a reference to drugs, but I'd argue that's like one of those #3 definitions on dictionary.com, like who cares, only the #1 definition matters.

Urban Dictionary: Dope

Saying something is cool. Most heard in big cities. Or, a drug. (Ex. Cocane/Mary J/ Dope)

www.urbandictionary.com

Ok, for the melanin challenged among us I will speak the King's English:

My good man, would you please share the information that you have from Scotiabank❓
That is of course if you have it.

 

[PICHARDO]

Just a few minutes ago..

 

[PICHARDO]

https://do.scotiabank.com/content/dam/scotiabank/international/dominican-republic/documents/2-1_Contrato_de_Préstamo.pdf

 

[PICHARDO]

For US dollar mortgages;

Préstamos Hipotecarios para Propiedades Vacacionales | Scotiabank República Dominicana

Scotiabank te ofrece prestamos a cuotas en dolares norteamericanos para comprar un lugar muy especial para tus vacaciones

do.scotiabank.com

 

[mobrouser]

Mistake #1: Not Considering All of Your Options
It can be very tempting if you come into some extra money to put that toward paying your mortgage off ahead of time. However, getting out of debt a little bit earlier may not be the most remunerative choice to make. To illustrate this, let’s look at an example.
Let’s say you’re considering making a one-time payment of $20,000 toward your mortgage principal. Your original loan amount was $200,000, you’re 20 years into a 30-year term, and your interest rate is 4%. Paying down $20,000 of the principal in one go could save you roughly $8,300 in interest and allow you to pay it off completely 2.5 years sooner.
That sounds great, but consider an alternative. If you invested that money in an index fund that represents the S&P 500, which averages a rate of return on 9.8%, you could earn $30,900 in interest over those same 10 years. Even a more conservative projection of your rate of return, say 4%, would net you $12,500 in interest.
Everyone’s financial situation is unique, and it’s very possible that the notion of being out of debt is so important to you that it’s worth a less than optimal use of your money.
⬆️ My thoughts exactly.
They may not be yours.
I understand this.
Everyone's financial situation is unique.😉

Of course you have to include the tax ramifications on that interest earned in your calculations as well.

 

[PICHARDO]

Once again:

Dominicans for the most part don’t use mortgages to buy property. We buy cash, using family funds, personal loans from biz partners, loans from bienes raíces, and the majority of cases we build up our own homes in a timely fashion bit by bit from scratch.

The rates by banks are always variable after the first 3 to six years. The interest is high and not worth to pay if you can afford your own way.

The people who do go with banks, do so because they plan to invest the money into a biz which would produce the capital and interest and then some more as profit. Therefore providing the house and paying the bills for years, or until paid for.
It’s always a better option to put the 💵 money to work for you, than putting it into a house that produces zero money until sold.

We buy brand new cars cash, use them for three years or so and sell them. When you buy cash the price is different! You don’t ever need to worry about maintenance or mechanics.

 

[PICHARDO]

Of course you have to include the tax ramifications on that interest earned in your calculations as well.

Risky and not 100% secured.

 

[Yourmaninvegas]

Once again:

Dominicans for the most part don’t use mortgages to buy property. We buy cash, using family funds, personal loans from biz partners, loans from bienes raíces, and the majority of cases we build up our own homes in a timely fashion bit by bit from scratch.

The rates by banks are always variable after the first 3 to six years. The interest is high and not worth to pay if you can afford your own way.

The people who do go with banks, do so because they plan to invest the money into a biz which would produce the capital and interest and then some more as profit. Therefore providing the house and paying the bills for years, or until paid for.
It’s always a better option to put the 💵 money to work for you, than putting it into a house that produces zero money until sold.

If you pay cash for your house:
You live in your house.
You do not have to pay rent so that is a benefit in and of itself.
You do not have a 🇩🇴 Landlord or the Landlord's attorney (profanity redacted) with you.
You can make all the improvements or changes as you want.
You avoid the compound interest payments over years and years.
You receive the ability to claim the house as yours during family gatherings when you are drunk and tell people if they do not like it they can get the (expletive deleted) out‼️

We buy brand new cars cash, use them for three years or so and sell them. When you buy cash the price is different! You don’t ever need to worry about maintenance or mechanics.

I agree that you should also pay cash for your cars.
But I believe that you should drive them until the wheels fall off.
Especially considering the resourcefulness that I have seen when it comes to maintenance and repairs.
And factoring in the labor rates here in 🇩🇴.
But the attitude displayed above about not worrying about maintenance or mechanics...
Is exactly why anyone buying a used care in 🇩🇴 needs to be extra careful.
And I mean that as a hard truth not disrespect P man.

 

[PICHARDO]

If you pay cash for your house:
You live in your house.
You do not have to pay rent so that is a benefit in and of itself.
You do not have a 🇩🇴 Landlord or the Landlord's attorney (profanity redacted) with you.
You can make all the improvements or changes as you want.
You avoid the compound interest payments over years and years.
You receive the ability to claim the house as yours during family gatherings when you are drunk and tell people if they do not like it they can get the (expletive deleted) out‼️


I agree that you should also pay cash for your cars.
But I believe that you should drive them until the wheels fall off.
Especially considering the resourcefulness that I have seen when it comes to maintenance and repairs.
And factoring in the labor rates here in 🇩🇴.
But the attitude displayed above about not worrying about maintenance or mechanics...
Is exactly why anyone buying a used care in 🇩🇴 needs to be extra careful.
And I mean that as a hard truth not disrespect P man.

I used to build my homes in the DR, not anymore. I rent only now. The money is working hard for me and I have flexibility to change locations on a dime.

Used to be that settling at a nice place was a good choice. Nowadays you can end up with a disco or a late night bar next door and little power to do anything about it.

I hadn’t finished my last home in Jarabacoa, when the hillbillies troupe settled around the property. It was too much too soon for me.
Sold it finished but not lived in.

I found a reasonable spot in Santiago as a home base. Rental and easy to break the lease with a few bucks.

Looking to build in Constanza (maybe) in the future. I have the plot of land, just waiting to see how it develops first. See some semblance of where it will end up being.

As far as my cars? I have a dealer that can’t wait to get his hands on mine to resell.
It’s the best way to sell them and no headaches as he provides warranty to buyers himself, as he knows the condition of my cars when I get rid of them.

It works for me.

 

[Yourmaninvegas]

I used to build my homes in the DR, not anymore. I rent only now. The money is working hard for me and I have flexibility to change locations on a dime.

Used to be that settling at a nice place was a good choice. Nowadays you can end up with a disco or a late night bar next door and little power to do anything about it.

I hadn’t finished my last home in Jarabacoa, when the hillbillies troupe settled around the property. It was too much too soon for me.
Sold it finished but not lived in.

I found a reasonable spot in Santiago as a home base. Rental and easy to break the lease with a few bucks.

Looking to build in Constanza (maybe) in the future. I have the plot of land, just waiting to see how it develops first. See some semblance of where it will end up being.

As far as my cars? I have a dealer that can’t wait to get his hands on mine to resell.
It’s the best way to sell them and no headaches as he provides warranty to buyers himself, as he knows the condition of my cars when I get rid of them.

It works for me.

I too have found a home.
SDE works for me.
I own.
But, I do not like living around people here in 🇩🇴 .
Elbow room is what I need.
Where no one can get close.
No mortgages needed but I appreciate the information given so I can pass it on to my friends.
I have already put in the work for my 💵
So, I suppose my money works for me.
By giving me a safe secure place to live
Instead of chilling on the financial statement of some bank.
As for my cars?
Got a team of mechanics that put in quality work for me at prices I consider a value.
They are old but no one can tell.
Maintenance has value.

Everyone works for me‼️
And I like it that way.

 

[JD Jones]

My wife hates, and I mean hates, to pay one cent in interest or extra service for an extra withdrawal....etc. La Gente dice ella es tacana, pero no, ella es muy frugal.

I'm the same way. Throwing away money.

 

[JD Jones]

I used to build my homes in the DR, not anymore. I rent only now. The money is working hard for me and I have flexibility to change locations on a dime.

Used to be that settling at a nice place was a good choice. Nowadays you can end up with a disco or a late night bar next door and little power to do anything about it.

I hadn’t finished my last home in Jarabacoa, when the hillbillies troupe settled around the property. It was too much too soon for me.
Sold it finished but not lived in.

I found a reasonable spot in Santiago as a home base. Rental and easy to break the lease with a few bucks.

Looking to build in Constanza (maybe) in the future. I have the plot of land, just waiting to see how it develops first. See some semblance of where it will end up being.

As far as my cars? I have a dealer that can’t wait to get his hands on mine to resell.
It’s the best way to sell them and no headaches as he provides warranty to buyers himself, as he knows the condition of my cars when I get rid of them.

It works for me.

Straight from the Bible, Pich.

I live in a small residential building with 10 apartments. No little kids when I moved in - now there are 7, and they could all be named Dennis.

They cannot play quietly, everything is screaming and running around and bumping into car with the new bikes they got for 3 kings day.

But, it's a nice apartment. Nothing fancy but it's quiet and comfortable. $200 bucks a month. My last apartment was in a middle-class residential that was very nice but was the same size as I have now and cost 600 a month. Now I save 400 a month on rent, don't pay tolls, and live much closer to my work.

And while I prefer to live in a house, it is getting to be near impossible to find a house for rent that doesn't have another house a meter away. They are quickly disappearing.

I'm with Vegas on buying cars. Mine are 12, 26, and 31 years old and all are still in good shape. I don't have the "Keep up with the Joneses" gene in my body.

 

[Radical]

My good man, would you please share the information that you have from Scotiabank❓
That is of course if you have it.

Never claimed I did.

Don't understand what made you think I did?

 

[Yourmaninvegas]

Never claimed I did.

Don't understand what made you think I did?

The fact that you keep calling out Bob on his information implying it is incorrect.
Thought you might like to add to the conversation instead of just being a critic.
I just gave you that chance.
You decided to pass it up.
Also thought I would help you expand your vocab a bit.
I gave you a definition of "Dope"
Evn doe I don red o spel 2 gud.

I still think if a person is buying a property for personal use they should pay cash.
Borrowing money should be reserved for investment purposes and using it to make more money.
But that is just one opinion from YourManInVegas.