Samana Dominican Republic real estate - Dominican Republic north coast real estate - Puerto Plata Dominican Republic real estate

MORTGAGE FINANCING
Until recently, there was no financing for Dominican Republic properties; however, West Indies Connections has secured mortgage financing with several Dominican and some Canadian lenders.

Canadians and Americans will find the financing process similar to that of their home countries, but slower, and with more paperwork required at the outset such as income/tax documentation from your home country, appraisal, etc.

How we can help

Mel Valerio, Owner/Mortgage Broker, 780-474-7900
Mel has been working in the finance industry for over 30-years. He was a Canadian bank manager for 25 of those years, but moved completely into his first love, mortgage brokering, over 7-years ago. Mel can provide financing for Caribbean properties through North American, European, and Dominican lenders. As a Canadian mortgage brokerage, he can also help clients with financing on their Canadian properties to help finance Caribbean real estate. For more on about how mortgage financing works and other resource information, please visit our sister company: www.mortgageinnovations.ca.

Pre-approval
Unlike a pre-approval in Canada or the US, DR lenders will provide one only in principle. Lenders will look at the client's personal information and approve a general amount that they are prepared to give a client for mortgage financing, thus letting the client generally know how much they have to spend on a property after they put in their down payment.

Terms
DR mortgages can have amortization's up to 25 years. Interests rates are higher than what we are used to in Canada and the US, and stand at about 9.5%. Lenders will finance up to 70% of the value of the property.

Qualification
Financially qualifying for a DR mortgage is similarly to qualifying in your home country. Lenders look at similar items such as income, down payment, credit history, employment, etc.

Other Methods of Financing
Many of our clients also choose to re-finance property in their home countries to pay for their DR property. This can speed up the buying process and offer you better negotiating power as you are offering cash. The DR property can be re-financed after the purchased to re-pay what was borrowed in Canada or the US, however, may clients choose to keep their financing in their home countries as interest rates are generally lower.

Please speak to us about the best way to finance your DR purchase. We are also a full service Canadian mortgage brokerage and can help you with financing no matter where you choose to do it.


TERMS AND CONDITIONS FOR DOMINICAN REPUBLIC MORTGAGE FINANCING

The following lists the items that will be required by the lender to obtain mortgage financing in the DR. Many of these items are obtained by the lender themselves, or by us, your brokers, but this is a thorough list of all requirements:

Legal Requirements:

  • copy of your passport - in colour (you)
  • loan application (you)
  • property ownership certificate (lawyer)
  • copy of the Purchase and Sales Agreement (us)
  • property appraisal (the bank will arrange with an approved appraiser in the DR)
  • Tax Property Declaration (IVSS) (lawyer)
  • Land Registry Certificate concerning no liens or mortgage on property (lawyer)

Financial Documents:

  1. If you are self employed or own your own company:
  • financial statements for the last 3 years certified by a local CPA
  • financial statements - figures must be reflected in local currency and should include: balance sheet statement, income and expenses report, and cash flow
  • statements must show down payment for acquiring the property
  1. If you are a salaried employee:
  • letter of employment from your employer
  • copy of last 3 year's income verification: for Canada - Notice of Tax Assessment, for the US - W-2 or tax returns
  • copies of your 3 most recent pay stubs
  1. bank references (minimum 2)
  2. bank account statements or credit card statements for the past 4 months
  3. credit bureau form properly completed and signed, to enable ut to ask for credit reference in the country of origin

Upon initial review of your financing request, confirmation of property insurance policy in force with endorsement in favour of the lender.