For foreign buyers, getting financing in the Dominican Republic is not an easy task. Fortunately, we are here to help you as much as we possibly can!
Many buyers choose to obtain a line of credit from their home bank which is the best option because this is generally where you will obtain the lowest interest rates.
If financing from your home bank is not an option, there are two types of financing options available in the DR. Seller financing, where the seller/developer is willing to provide the buyer with a mortgage, or traditional bank financing.
Some of our sellers are willing to offer owner financing to buyers. Usually they require at least a 50% down payment and require repayment within 3-5 years. You can see a full list of our properties below where the sellers are willing to offer some financing.
Scotiabank is now offering mortgages for residents of the UK, Canada and the US who are buying a second home in the Dominican Republic. This is a new program but we have had several clients who have successfully purchased homes using this mortgage program.
But keep in mind there are stringent qualifications with an average of 1 in 12 being approved. Also the applicant must own a home in North America, or the UK and have assets totalling at least the value of the mortgage, therefore this is not an option for the majority of buyers.
Scotiabank Mortgage Information:
- Maximum loan amount is 65% of appraised property value.
- Maximum finance term is 25 years.
- Interest Rate is 3.75-5% annually.
- Loan applicant must own a first home in Canada, US or UK or have assets in at least the value of the mortgage.
- Credit rating of at least 680 for Canadians and 640 for US applicants
- 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) equivalent to at least the amount of the mortgage.
- Insurance assignment
- Property Appraisal from an authorized appraiser.
- Copy of Offer of Purchase & Sale
- Proof of down payment.
Contact us today if you would like some further information!
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