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Basic criteria
for mortgage assessment
in the Caribbean
The basic criteria
for mortgage assessment
in the Caribbean
is much the same
as anywhere else
in the world. Every
lender assesses
the risk by investigating
the strength of
both the applicants
and the security
being offered.
1 Applicant
Lenders require
true and accurate
information on the
applicants, including
their assets and
liabilities, their
income and expenditure.
In some instances
where overseas applicants
are involved, character
references and photo
ID will be requested
plus evidence of
credit history.
2 Property
Lenders will require
a satisfactory Valuation
Report from an approved
valuer/surveyor,
the cost to be borne
by the applicant.
They will also require
clear title and
their lawyers will
then register a
first charge to
secure the loan.
When the lender
is satisfied with
both aspects of
the assessment,
a letter will be
issued to the applicant
listing the terms
and conditions of
the loan. The applicant
will then sign their
acceptance of these
terms and the lender’s
lawyers will then
communicate with
the applicant’s
lawyers to complete
the process.
The capital and
interest repayment
method remains the
most used product,
although interest-only
and fixed rate products
are coming, the
process is very
slow and at the
moment the options
are limited.
All loans are agreed
in US$. The current
most widely used
mortgage product
for overseas purchasers
is one that takes
advantage of the
low US$ LIBOR rate.
The general terms
and conditions of
the US$ product
are maximum repayment
term 15 years, maximum
loan-to-value 70%
(50% for new builds)
and borrowers must
repay in US$. All
other normal lending
requirements apply.
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Mortgage
Term: |
Maximum
15 years |
|
Interest
Rate: |
Approximately
6% |
|
Interest
Basis: |
US
Prime
or US
Libor |
|
Payment
Method: |
Capital
&
Interest |
Currency: |
US
Dollars |
Maximum
Loan: |
70%
(Resale) |
|
50%
(New
Build) |
Lenders
Arrangement
Fee: |
1%
of loan
amount |
Valuation
Fee: |
Based
on Property
Price |
Legal
Fees: |
Approx
2% of
Property
Price |
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