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Mortgage
Information

If you’re considering financing your property purchase in Barbados, there are several options to explore. Below, you’ll find information on both US dollar offshore mortgages and local currency financing. Should you have any questions, our agents will gladly provide further guidance or connect you with a trusted financing specialist.

US Dollar Mortgage / Finance:
US dollar mortgages (please note that non-nationals/non-residents can also borrow in BBD Dollars) are readily available to non-nationals and non-residents, from the offshore sector of the local banking industry. You would be best advised to contact these institutions for their exact terms and conditions, however here is an overview of what can be expected:

  • 65% LTV up to US $2M
  • 50% LTV in excess of US$2M
  • No minimum loan amount is required
  • Amortization is typically capped at 15 years, although longer terms may be considered on an exception basis.
  • The interest rate is determined based on the client’s profile and may vary on an individual basis. Currently, the variable rate is approximately 6%.
    Bank attorney fees are approximately 2% to 2.5% of the purchase price, plus VAT.
  • These fees may be reduced if the same law firm is used.
    The Bank’s commitment fee is 0.5% of the loan amount, while the valuation report typically costs 1% of the market value.

Personal requirements include, but are not limited to:

  • A demonstrated foreign income stream is required to support mortgage repayment. For salaried clients, this typically includes job letters, pay slips, and three months of salary deposits. If your income is variable or includes significant bonuses, two years of tax returns may also be required.
  • For self-employed clients, two years of company financial statements, along with two years of personal and corporate tax returns, are required.
  • Current valuation / appraisal on Barbados property you own
  • A current personal financial statement is required. If the property is being purchased through a company, financial statements and corporate tax returns for at least two years must be provided. The extent of financial documentation required will depend on the company’s revenue.
  • Bank references letter
  • Total debt servicing ratio not to exceed 40%
  • Approval by The Central Bank of Barbados
  • Sales agreement and current valuation report on the Barbados property you intend to purchase
  • Two forms of Government issued identification
  • A full credit report from your country of residence is required, and it must include a credit score.
  • Additional documents may be requested depending on your individual circumstances and source of income.

The Institutions Offering US Dollar Mortgages Are:

  • The Royal Bank of Canada
  • First Caribbean International Bank

Local Barbados Dollar Mortgage / Finance:
When applying for a local Barbados dollar mortgage there are a few important points to note. Most financial institutions require the
following documentation:

  • Proof of identification, such as a Barbados ID or passport
  • Proof of residential address, e.g., a utility bill
  • Job letter, recent pay slip, and at least three months of salary deposits to your bank account.
  • If self-employed, company financial statements and corporate tax returns for the past two years.
  • Barbados property sales valuation report
  • If you are building or renovating a property, a contractor’s estimate must be provided.
  • A property sale agreement from the vendor, where applicable, must be provided.

In general, the terms and conditions for local mortgages are as follows (may vary among lending institutions):

  • Interest rates range from 3.25% to 7.5%, based on the local market. You can use our Mortgage Calculator tool to estimate your potential monthly payments. Mortgages can cover up to 95% of the property value, with some institutions offering up to 100% financing.
  • DSCR should not be more than 40% of gross personal income
  • List of assets and collateral
  • Evidence of full life insurance
  • List of cash and bonds
  • The property itself can be used as collateral to secure your mortgage
  • Terms can vary:
    • A deposit of up to 10% is required, although some banks offer 100% financing.
    • Up to 35 years to repay

Generally, mortgages must be fully repaid before reaching the standard retirement age of 67 in Barbados, or 70 if self-employed. Your mortgage payments and term will be calculated based on your age and the years remaining before you turn 67 or 70. However, most institutions offer flexibility, and it’s recommended to consult with a mortgage specialist to determine the best loan term for your situation.

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