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.
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:
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.
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 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.
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.
Get the latest property and investment opportunities direct to your inbox for FREE (you can unsubscribe anytime)
Dominican Republic on Property Investors' Radar
Golf Tourism Boosts Dominican Republic
Dominican Republic property market experiencing 'confidence crisis'
Dominican Republic court ruling to affect property owners
Capitalise on golfing tourism in the Dominican Republic
Canadians are seeking sun in the Dominican Republic
All property news from Dominican Republic
Subscribe to our RSS Feed
Subscribe to our newsletter and keep up to date with the latest and best investment opportunities around the world!