Mortgages in The Bahamas for your property in The Bahamas
Getting a Mortgage in The Bahamas
Since 1993, foreigners have been encouraged to buy a second home in the Bahamas. A major motivator was the introduction of the International Persons Landholding Act. In the past any foreigner buying a property or land to be used for construction of a property had to obtain a permit from the Government proper to purchase. However, since 1993, foreigners simply need to register the acquisition later with the Investments Board.
In certain cases permits are required for buying Bahamas real estate. The first being if the land is five acres in size or larger and the second being if the property is not a private residence or is not intended for development.
Mortgages may only be given in US Dollars at international rates.
The deposit required is often 40% of the property value. This can range from 30 – 50%.
In the past foreigners had to pay a double rate of stamp duty but they now pay the same single rate as a Bahamian.
Stamp duty starts at 2% for real estate valued under $20,000 US, but increases to 10% for real estate over $250,000 US.
There is also a 1% stamp duty on mortgages paid by the borrower.
Rates are typically 2 - 2 ½ points above LIBOR (London Interbank Offered Rate which is the rate of interest at which banks could borrow funds from other banks, in marketable size, in the London interbank market.)
Good luck getting your mortgage in The Bahamas!