Mortgages In Cape Verde

The lack of local mortgages could be construed by many as a disadvantage, but it means that the market is indeed in its infancy, allowing international property purchasers to source excellent quality property at remarkable prices. What is more, the Cape Verde market promises some of the best possible capital appreciation rates worldwide and a future rental market that will rival many other major holiday destinations.

There is already talk of many developers of investment property in Cape Verde starting to make progress by offering mortgages to off-plan buyers but the paradox is that as the financial stability of the area increases and mortgages are become more readily available, the best investment opportunities will already have gone. Prices will undoubtedly rise substantially when this happens and, as with every emerging market, it is the very early investors who see the potential in the area that make the most substantial returns on investment.

Today it is possible to achieve a mortgage upon project completion but this does not help a property purchaser fund an investment. The payment schedule for buying an off-plan property in Cape Verde is very different from a more established market such as Spain which typically offers a 30% deposit and 70% payment on completion. This can almost always be covered by a standard mortgage, usually offered by the developer itself. However, a typical purchase in Cape Verde will include 5 stage payments across the development period of the property. The investor or home buyer will need to fund these payments but has the possibility of achieving a 70% "mortgage" on the valuation of the property when they finally sign the completion documents.

MORTGAGE LOAN FOR FOREIGNERS

Terms

Currency	EURO
Amount	Up to 70% LTV (subject to status)
Subject	Purchase of a property
Term	Up to 15 years
Type of mortgage	Repayment mortgage – capital and interest
Interest rate	Variable rate: 6 months EURIBOR + 3.75 approx. 7% Fixed interest rate: approx. 8%
Bank arrangement fee	1.25% (No commission received by Fidentia from bank)
Fidentia fee	£595
Early redemption penalty	First 5 years: 1-2% of the outstanding balance After 5 years: 0%
Stage payment financing	Yes
Collateral	mortgage on a real estate in Cape Verde