Residential Loans
Barbados
FINANCING A HOME IN BARBADOS
A snap shot of our product offering:
- 60% financing for properties costing up to USD 1.5 million exclusive of furnishings and appliances. For construction projects (self-build), financing is limited to 50% however where it represents stage payments through a developer, who is delivering occupancy, higher LTV may be considered.
- For property purchases costing in excess of USD 1.5 million, our financing is limited to 50% of cost, exclusive of furnishing and appliances.
- Equity financing is available for up to 50% of the market value where a property has been owned in excess of 3 years. If requested before, we would offer based on the initial cost of the property.
- Minimum financing is limited to USD250,000.
- Interest rates are linked to USD 3-month LIBOR + 2.85%. Fixed rate options are also available with 2,3, 5,10, 15 & 20-year options.
- There is currently no penalty for accelerated or lump sum payments on facilities linked to variable rates, however where fixed rate options are exercised, penalties would apply.
- Mortgage is normally structured over a maximum 20-year term, or until retirement. In any event we will need to be comfortable with sustainability of income used to qualify for debt.
- Interest only options may be considered however they are limited to a maximum interest only term of 5 years, thereafter if a balance is out-standing, it is repayable over the remaining term through payments representing a blend of principal and interest.
- Security is by way of Registered Legal Mortgage over the property being purchased, supported by Assigned All Perils Insurance.
- Alien Land Holding License to be obtained.
- Arrangement Fee (Bank Fee) of 1%.
- All Legal and closing cost are covered by client
- Demonstrated foreign income stream must be provided to support repayment of mortgage.
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