Finally! Mortgages For Foreigners Buying Vacation Homes in the Dominican Republic

Technically mortgages have been available tosuccessful in obtaining mortgages for any of
foreigners buying property in the Dominicanthem, with the exception of one where they
Republic since 2005. However, despite numerouswere able to negotiate a mortgage directly from
attempts at obtaining mortgages for verythe developer. It seemed that, although several
qualified buyers, until this year I did not have onebanks were promoting mortgages for foreigners,
client who was granted a mortgage.none of them were actually approving applicants
In 2005 many real estate brokers in the DR wereand providing mortgages.
approached by a mortgage broker, based inIn December of 2008, I was contacted by a
Florida but with a representative living in Santodeveloper who had worked with an international
Domingo, who claimed that they were able tobank (international, but with many local branches
provide mortgages to foreigners on Dominicanthroughout the Dominican Republic) to have his
Republic real estate. I worked with these brokersCabarete, beachfront condominium development
for three very qualified buyers two from Canadaapproved for mortgages. The individual buyers
and one from the US. Two of these clients werewould still have to go through the regular
declined, for no obvious reason that we couldapplication and approval process but the
determine. With the third client, a very qualifiedcondominiums were appraised by the bank and
Canadian business man, after months ofthe property was approved, which would make
completing realms of paperwork and providing anthe process much quicker. I am very pleased to
unbelievable amount of backup documentation, wesay that in early January one of our clients, a
finally had an approval! The day of closing thecouple from Colorado, received a mortgage for
mortgage broker informed us that all of thetheir condominium through this bank!
mortgage documents had been forwarded to theThe mortgage program is offered to residents of
lawyer and were waiting for signature. When weCanada, the US or the UK who are buying a
arrived at the lawyers there had been novacation home in the Dominican Republic. The
documents delivered. The lawyer immediatelydocumentation requested is similar to that
contacted a VP at the (local) bank, who therequired from any mortgage provider and the
mortgage broker had identified as the bankprocess, once all paperwork is received by the
providing the mortgage, only to discover that thebank, takes about a month. The mortgage is only
application had never been approved. Needless toon the property being purchased in the Dominican
say, we did not ever work with that broker again,Republic and the buyer does not have to put up
although I did come across some information onassets in their home country as collateral. The
them online recently and I believe they are stillterm is up to 25 years and the interest rate is
promoting themselves as mortgage brokers.8%, which is higher than most foreigners are
In 2007 a new mortgage broker set up apaying at home but substantially lower than the
business locally. I met with them and they had16% plus being offered by local banks on peso
definitely completed all of their due diligencemortgages. Also, we are dealing directly with the
before establishing their business. They werebank so there are no mortgage broker fees to
going to work with both international banks andworry about; these fees were running at the
local banks to provide applicants with several3.5% range.
options of mortgages. They tried for a full yearFinally, a vacation home in paradise is within the
with many highly qualified clients and were notreach of all!