Wednesday, March 9, 2011

How Do I Get a Mortgage in the Cayman Islands?

After you have found the property of your dreams, mortgages are still available here in The Cayman Islands for residents, expats and foreign investors. It pays to shop around as rates are competitive and can be negotiated. Interest rates follow New York Prime as quoted by Citibank, usually +1%. Standard mortgage terms require a down payment of 20-35% plus closing costs. The usual mortgage length is 10-15 years and can be in US or CI dollars. Most banks do not charge pre-payment penalties.

When considering your mortgage allowance, please keep in mind stamp duty will be charged on the money you borrow. Loans less than CI $300,000 require a 1% stamp duty fee, loans over CI $300,000 require a 1.5% stamp duty fee. Legal feels are typically .5% and the bank will charge .5% on the cost of the mortgage. Interest only mortgages are not available in the Cayman Islands.

For any questions regarding mortgages, lenders, etc. please see your Cayman Islands Real Estate Agent for all the answers to your questions. 

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