To secure bank financing, specifically a mortgage loan, for purchasing real estate in the Dominican Republic, it is imperative that the property holds a valid property title.
Mortgage loan applications in the Dominican Republic are open not only to Dominican citizens but also to foreign nationals aged 18 and above.
Each bank in the Dominican Republic sets its unique terms and document prerequisites for assembling a loan application.
Typically, the funding amount extends from 70% to 80% of the property’s appraised value.
The loan tenure can span anywhere from 3 to 20 years.
Interest rates for loan utilization fall within the range of 9.5% to 13.5% annually. It’s worth noting that fixed rates are typically in effect for a set period, usually between 3 to 10 years, after which the bank reserves the right to adjust the rate.
Should borrowers choose to make an early repayment of the mortgage loan, banks may impose penalties.
During the registration of a mortgage against a real estate asset, pertinent details are recorded in the property title, with the original document safeguarded by the bank until the loan is fully repaid.
For those interested in mortgage lending, prospective buyers should proactively reach out to a bank representative to obtain comprehensive information.
For further guidance and to access the list of necessary documents when applying for mortgage loans in select Dominican Republic banks, please refer to the following links:
Banco Popular
Banreservas
Scotiabank
Banco BHD León
Banco Santa Cruz
