Investment Finance For The Dominican Republic

Below is an overview of the various investment finance options available to property investors in the Dominican Republic.


Financing your property investment in the Dominican Republic is an important decision and could entail injecting your own cash resources or, as most serious investors prefer, a mortgage or equity release scheme.

Mortgages

75% - 80% LTV mortgages are widely available to foreign buyers in the Dominican Republic and if you are planning on raising a loan to finance your property, you will typically need to supply the bank with the following documents:

  • Completed and signed borrower application including list of real estate you own
  • Authorisation form to allow them to check your credit
  • Completed and signed service agreement and disclosures
  • Proof of income—Salaried employee: complete 2 years of tax returns; last 2 pay slips; work contract, work telephone number
  • Proof of income—Self-employed: Complete 2 years of tax returns; reference letters, or other business documentation
  • Proof of other income, such as rental income or fixed income: Rental agreements or tax returns to support other income
  • Most recent monthly account statement from each mortgage account or asset account you own
  • Purchase Agreement

The terms of your mortgage can be repayment or interest only and the loan could be raised in local currency, USD, GBP, Euro or CND. Typical lending periods are 15 to 20 years, or until age 65.

It is advisable to obtain mortgage approval in principle in order to be speed up the process when you find your dream property. It’s reassuring to know that your loan is achievable in principle, as you may need to make reservation payments for new properties prior to formally applying for the mortgage.

Click here to get a free quote on a mortgage in the Dominican Republic

Off-Plan Financing

Many off-plan developments in the Dominican Republic offer installment plans over between 12 to 60 months. The charges applicable vary according to developer and repayments are usually index linked. The developer can sometimes offer the most competitive finance options to investors and these are certainly worth considering when looking at mortgage alternatives from your own country.

As always, before making a commitment, we recommend you discuss your intended investment strategies for the Dominican Republic with a lawyer, a reputable property agent with experience in the area and even a financial advisor.

Equity Release

Equity release allows you to release some cash from the home you own without having to sell up and move house. If you are in your mid-50s or older and own your own home, you may be able to get a cash lump sum, a regular income, or both, by using an equity release scheme based on the value of your property. These schemes can be helpful in certain circumstances to raise money for a mortgage to finance your property in the Dominican Republic.

If you have property in your own country and would like to borrow against this in an equity release plan, we can introduce you to independent financial advisors who can help you raise the necessary finance for your investment property in the Dominican Republic.

Alternative Finance

Not everybody falls into a category and some investors will need to raise alternative finance to equity release or mortgage options. An independent financial advisor will help inform you of the other borrowing facilities available to purchasers of investment property in the Dominican Republic.

Click here to get a free quote on a mortgage in the Dominican Republic

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