The Caribbean has long been a dream destination for holidaymakers and property investors alike. With its pristine beaches, tax-friendly jurisdictions, and growing international communities, the region offers exciting opportunities for those looking to buy property.
However, obtaining a mortgage in the Caribbean can be complex, especially for international buyers. Mortgage terms vary significantly across the islands, and understanding these nuances is key to securing the right financing.
In this article, we explore the mortgage options available in the Caribbean, key lending criteria, and what international buyers need to know before purchasing property in the region.
Can International Buyers Get a Mortgage in the Caribbean?
Yes, several banks in the Caribbean and international lenders offer mortgages to foreign buyers. However, lending terms, down payment requirements, and rates will differ between islands and institutions. The most established mortgage markets for foreign buyers are in islands such as The Bahamas, Barbados, Cayman Islands, Turks & Caicos, Antigua, and St. Lucia, but mortgages are also available elsewhere with the right lender relationships.
Typical Mortgage Terms in the Caribbean
Understanding the general terms of mortgages in the Caribbean can help buyers plan their investment and financial strategy. Here's a breakdown of what to expect:
Get in the Know
Subscribe to our newsletter
• Loan-to-Value (LTV): Most lenders will offer up to 60–70% LTV for international buyers, meaning that generally, buyers need to contribute a 30–40% deposit
• Interest Rates: Expect mortgage rates between 5–7%, which can be fixed or variable, though this can vary depending on the island and the lender
• Term Length: Mortgage terms usually range from 15 to 20 years
• Repayment Structures: Both interest-only and capital repayment structures may be available, though interest-only is generally reserved for private banking clients
Lender Types in the Caribbean
Mortgage lenders in the Caribbean differ, each offering distinct advantages:
Local Caribbean Banks
Offer straightforward mortgages with standard criteria, typically based on income verification and creditworthiness. The lending processes can involve significant paperwork, and rates and terms tend to be less flexible.
Private Banks & International Lenders
These lenders are more flexible, especially for Ultra High-Net-Worth (UHNW) clients, offering tailored solutions to meet unique financial circumstances. Flexible terms such as interest-only loans are often available. They can also provide funding for the construction of single-use homes, with financing up to 80% of total construction costs.
Key Eligibility Criteria for Caribbean Mortgages
To qualify for a mortgage in the Caribbean, international buyers generally need to meet the following requirements:
- Proof of Income & Assets: Demonstrate stable income and a strong asset base. This can be shown through pay slips or an accountant's letter
- Credit History: A clean credit record is essential. Some banks may also assess your credit score from your home country
- Source of Funds: Lenders require proof of the source of funds to comply with anti-money laundering regulations
Additional Costs to Consider When Buying Property in the Caribbean
When purchasing property in the Caribbean, it's essential to budget for additional costs beyond the property price. These may include:
- Stamp Duty & Taxes: Varies by island and can range from 3%–8% of the property value
- Legal Fees: Typically, 1–2% of the property value
- Bank & Arrangement Fees: Often 1–2% of the mortgage amount.
- Insurance: Property insurance, with the lender's interest noted, is mandatory
Development Finance in the Caribbean
Development finance is generally available on larger islands, and the terms can be more specific:
- LTV: Financing up to 75% of hard costs (including land) with fixed-price contracts
- Land Ownership: The land must be owned outright with necessary permits in place
- Guarantee: A guarantee from the principals is required
- Reserve: A reserve of 10% of hard costs must be held with the lender in an interest-bearing account.
Popular Islands & Their Mortgage Markets
The mortgage landscape in the Caribbean varies significantly across different islands. Notable examples include the Cayman Islands and The Bahamas, where strong local banks and private lenders offer up to 70% loan-to-value (LTV) with USD-based lending available. Additionally, development finance is an option if pre-sale values of 50% have been achieved before funding.
Barbados, on the other hand, boasts a competitive lending market with several international banks offering fixed-rate mortgages for the initial period. In contrast, islands like Turks & Caicos, Antigua, the British Virgin Islands (BVI), and the US Virgin Islands (USVI) have more limited financing options, which are often arranged through select international banks or private lenders. These regions typically require higher deposit amounts and have increased closing costs.
How Enness Can Help You Secure the Best Mortgage in the Caribbean
Enness Global specialises in arranging bespoke international mortgages for High-Net-Worth (HNW) and Ultra High-Net-Worth (UHNW) clients purchasing property in the Caribbean. We work with private banks and international lenders to structure complex deals, large loan sizes, and cross-border financing, offering tailored financing solutions. Additionally, we can accommodate clients who require flexibility, multi-currency solutions, or cross-jurisdiction support, ensuring flexible terms and multi-currency financing options. From lender negotiations, documentation, and completion, we provide end-to-end service, ensuring a seamless mortgage process from start to finish.
Get in Touch
If you're ready to make your dream property purchase in the Caribbean, Enness is here to help. Our team of experts can guide you through the complexities of securing a mortgage and ensure you get the most competitive terms. Contact us for a confidential conversation about your Caribbean property financing needs.
