The spectacular beaches, near perfect climate, delicious cuisine and the delightful friendliness of the local people has led to the Caribbean Islands popularity soaring, both as a holiday destination and as a location to buy property. The decision to purchase property in the Caribbean is one of either investment or lifestyle, in some cases both. The decision to borrow funds for that purchase is one of need.
There are some basic ground rules to understanding the mortgage process in the Caribbean and it is best to accept them from the outset The basic criteria for mortgage assessment in the Caribbean are much the same as anywhere else in the world. The lender assesses the risk by investigating the strength of both the applicants and the security being offered.
Lenders would require true and accurate information on the applicants, including their assets and liabilities, their income and expenditure. Lenders will require a satisfactory Valuation Report from an approved valuer or surveyor, the cost to be borne by the applicant. They will also require clear title and their lawyers will register a first charge to secure the loan.
When the lender is satisfied with all aspects of the assessment, a letter will be issued to the applicant listing the terms and conditions of the loan. The applicant will sign their acceptance of these terms and the lender's lawyers will then communicate with the applicant's lawyers to complete the process. The widely used mortgage product for overseas purchasers is one that takes advantage of the low US$ LIBOR rate.
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