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Professional Affiliations

Finance a Property

Local Retail Banks that provide mortgage services:

Bank of Butterfield (online banking available)

First Caribbean Bank

Cayman National Bank (online banking available)

Scotia Bank (online banking available)


Information for FOREIGN BUYERS:

The local banking industry is setup quite differently from other countries and there are some key differences you need to know from the start. The following information will help you get through this process without any surprises or confusion.

There are not any true fixed interest rates and the maximum term for a foreign buyer will be about 15 years. Currently the interest rate for the average mortgage is 6% (US prime rate plus 2%). The borrower's age is taken into consideration as well so if you are 55 and want a 15 year term you may have to go with a 10 year instead. The lowest down payment will be about 20% of the purchase price and all other closing cost must be paid separately. All borrower's are required to provide a life insurance policy with the bank as the beneficiary to cover the mortgage balance so this should be considered when calculating your monthly outlay. Lawyer fees to handle the closing for the bank are paid by the borrower and can cost as much as 1% of the purchase price (ask me first, I know some that charge .5%). There are not any tax advantages to having a loan in Cayman (locally or overseas). Banks consider 10% of the total amount of credit available to you as a monthly payment your are obligated to when calculating your debt ratio (i.e. a 20,000 credit limit on a Visa is considered as a 2,000 per month payment whether you are "maxed" out or not!). With rental properties they will only count 50% of the monthly income toward your income.

All banks will require proof of your foreign income such as the last two years tax returns and they will order a credit check. You will also need to provide proof of identity with notarized copies of your passport or driver's license and an original utility bill to show proof of your residence. You will also need to sign a statement disclosing the source of income used to buy the property (i.e. salary from job or income from business).

You will also want a checking account setup with the bank you select to have an operating account to pay bills for the upkeep of your property. All banks have different policies so you will need analyze which banks offer you the best service. Several Cayman Banks in Cayman have to send applications overseas for approval so you will need to allow a minimum of 4 weeks in an Offer to Purchase to to secure bank financing approval. One last thing... More than likely you will need to wire funds for the closing. It will take approximately 4 days to receive an overseas wire in Cayman!