Mortgage in Puerto Plata

I talked to the woman from my bank  and she said  Exactly what you said your going through and said that there’s not one bank in the Dominican Republic that actually wants to give a loan to a foreigner especially if you don’t have money in an account at their bank to cover it,,, plus the interest rates are at like 15 % when I talk to her …. Don’t count on it being approved

This is absolutely normal here. I am sorry for your experience.

Here it is buyer beware. Understand every step of the process before you pay anything!

I don’t personally know a single person who has successfully gotten a mortgage here. Most, like me, did an initial inquiry and decided it wasn’t worth applying. Several have started down the path and applied, but they either gave up or lost the property because of delays.

Best of luck to you!

We did get one in late 2020 from Banco Popular.  However we had to have 50% down.

We first applied at ScotiaBank thinking their Canadian roots would help. it took forever and we went to BP with the help of our Condo developer.

Eventually we pounded both banks against each other and BP came through at a reasonable rate (6%).

Good luck, but it’s not easy.

Your first learning  curve here ….

      Don’t buy anything in the pre-planning stage

  Don’t buy anything in the middle of construction

  Don’t count on the banks for anything

Is there a clause in your purchase contract giving the seller an "out" if you are not closing within a fixed period of time?  We applied to Scotiabank and obtained a committment.  They move very slowly.

Oh my, all these horror stories on loans. Note to self... bring my own money! That was crazy. I waited 7 years to get the deed to a property I had paid for  10 years previously. But I finally got it. Its ridiculous! In DR you do not get the deed until after you pay the loan off!

Have people worked on fostering personal relationships with bank managers? It seems that a lot of these banking decisions have very arbitrary aspects.

The process is no longer driven by personal relationships.  For expats it is very difficult to get financing.  Your credit where ever you are from has no value here.  Unless it is owner financed or developer financed via the bank it is very very difficult. It will take weeks and months to get approvals. Nothing here happens fast!

@Tippj

It seems that the appraiser, home inspector, and the agent are all making money while we "wait for approval".  We have sent everything they have asked for but its taking months. 

@Tripp789

Thanks for the information.  If we don't hear something soon, I'm sure the seller will back out on us and we've lost a lot of money.  If that happens we will just rent.  It's a shame they can get away with taking people's money. 

When “ I first “ came here I went to open a bank account ( 2 ) USD & pesos and asked the woman at the bank about loans… I figured maybe take a small loan and build my credit score here…. That’s when the woman explained that the banks are really not interested in giving foreigners loans and it was almost impossible to get one…. So when I bought I bought with cash…. Now the woman said  they might if I wanted give me a loan on half the value of the house I bought if I put the whole house up as collateral…..

not interested , remember they charge about 15% interest ….. save your time and energy and maybe buy w/ cash down the road cause there are some pretty good deals out there if you do your homework….. enjoy paradise while your here and don’t let this deter yer

You can get a mortgage and no the interest is not crazy. Scotiabank rates are fixed and with current inflation right now are very reasonable at 3.75-4.75%. The only thing is you need to put conditions on your offer the same as in North America that it is based on approved financing. You should also have pre-approval from Scotia before proceeding. It is not impossible but it is difficult. Don’t give up if you have started, get their information through WhatsApp and keep in touch daily to find out their requirements. It may seem crazy some requests - but it can be done. I hope you hear back soon!

don’t believe that for a moment …    How does someone get pre approved at a bank in a third world country  w/ no credit history , no money in a bank and not even a piece of property to put up as collateral   by a bank ( Banks ) that are very distrustful of any and all outside  Currency….. like I said in an earlier post “my “ bank wanted me to have enough money on deposit to cover the whole loan ….and maybe they would entertain a loan with permission from the main bank in SD which would take months before anyone would be even assigned the case file # And as far as interest rates

The women explain to me “ 3 years ago “ that the bank will charge what ever it want as far as percentage % … and it will be determined by your credit…” OH “ you don’t have a credit score…. She quoted me at the time a % rate of. Between 12 - 15 %….. yes please let me know how your loan process goes

Ok Tippj just because your experience is different doesn’t make me a liar… I did get preapproval and I did get a mortgage. In the end you need to show the bank the investment is worth it.

We won't be doing any name calling on either end please! 

Your experience is not the normal one frankly.  It is very difficult and very time consuming to get mortgages here for expats especially with no history! 

Did not call you a liar,,,,, I just think your misinformed a little …

First of all you can’t get a mortgage for  3.75 % - 4.75 % anywhere in North America  ,

maybe 4.75 %-5.50% and that’s with a 830 - 850 credit score most mortgages are even north of that here in New York….Now  , I mentioned the credit score because  All loans are based on credit scores and the lower your score the more your % rate you will pay ,

now if you don’t have a credit score you can get a loan from a  money lender from any where 7-8% up to 30% for a business here in North America .

now I really don’t think a bank in the DR is going to give you a loan based on your pay check stub from a North America company or anywhere else for that matter just because you have been at the same job for 18-20 years…and you promise to pay it back, especially if you don’t have a credit score . Now I do know places in the DR , Businesses that will loan you money on a personal level….. but even they charge 17-22% and they want collateral and lots of it …

nope didn’t call you a liar , maybe a little misinformed….

It is very dependent upon the property you are purchasing.  For example, if the property is part of a bank financed project that advertises financing is available.  It might be possible depending upon the amount that you are financing.  Here's why...  The bank that is providing the financing already owns the project by way of an agreement with the developer.  It gets complicated to explain but in a project that the bank is involved in all of the titles, whether you are paying cash or getting a mortgage, have a lien on the individual titles as well as the entire property from the financing bank.  The amount of cash that you are required to put forth from your pocket, exceeds the actual cost of (developing) the property so the bank is not at risk.  If you decide to back out, the only loser will be you.  So, it is possible depending on the project.  This does not usually apply to resales or your own construction project.

Ok , I would buy that Scenario Mike’. but I wouldn’t buy the scenario “ it’s my dream house and it’s very cute and the bank should give me money to buy it because I think it’s cute “

@Tippj:  I agree.

What % of people have mortgages vs being renters?

Mortgages are not easy to get and they don’t take weeks they usually take months. If you want some tips feel free to pm me. What I said is true and everyone has their own experience. The rates for Scotia are fixed so unless they raised them in the last month or two (which is possible) everything I said still holds ground. It isn’t easy. But it is possible. If you are resilient and determined you can make it happen and no not just if it’s pre-approved properties such as Casa Linda or Hispaniola (which would probably be easier). This should be a forum to help each other not doubt each other’s experiences… Tippj I am very aware of mortgage requirements in North America …(I am Canadian but my understanding is Scotia exceptions are for both US and Canada citizens)

This thread needs to stay about the DR.  Nothing in the US or UK or Canada is relevant.

Stay on topic. Do not be attacking each other. Those are both basic standards for this forum.

Thanks planner i 100% agree. Scotiabank has a special agreement for Canada, US and I believe British citizens (I am not sure of the last one) where they can access credit reports and have some knowledge of our systems to allow them to approve mortgages in the DR. It’s not easy but it isn’t the old system that people refer to of over 10% interest either. It isn’t with all banks as we were in the process with another bank until they said their rate and I believe it was 13% which was too high. Also you don’t have to pay more than 50% down as a deposit although I am sure that would help. There are lots of posts that say otherwise and it isn’t easy but we did it. Just be ready for delays and keep pushing. In the end it’s a numbers game. If you can figure out what numbers they need and can provide you can succeed. Good luck cynthymon!

What % of people have mortgages vs being renters?
-@DRVisitor

Those two options don’t cover everyone! Many of us own our homes without a mortgage.

@ddmcghee

Yes because of interest rates being so high so was curious how many mortgages are actually issued. How does one afford it at the rates vs current salary...

Most  expats who live here and have mortgages, I will assume work for foreign companies with regular paychecks.  Not many expats have mortgages here.

Most Dominicans with mortgages are for very small places and it can be a struggle for them. Some Dominicans  who live offshore have mortgages here and rent out their places to cover it.

@cynthymon

Hi, I'm really interested in the outcome of your situation with Scotiabank. Do you mind sharing, when you get a chance?

@DeeJeeKing  Yes sure will do

@DeeJeeKing Yes sure will do
-@Jocelyne AM

Looking forward to your write up.

Thanks

@cynthymon Hi dear how did things work out for you with the bank?  I heard they are slow but I hope they approved you.  I am looking to get a loan with this bank too and hope these articles I am reading are not true about this bank. 

@snowinpalm Hi, Did your loan finally fund?  If so , how long did it take and which bank?  Thanks.

@arisandmarion Hello and thank you all for your feedback on this forum. You state to ask you for assistance in the area of obtaining a mortgage and I would really love your support please.. You can email me at ***. I look forward to learning about your positive experience in obtaining a mortgage in DR as the process seems very difficult from what I am learning. Thanks a ton!

Hello to all. My husband and I was recently funded by Scotiabank in January (2023). Our process started in September (2022). Smh. What a long and horrible process but we are happy it is over. I don't want to rant on about it here. I just wanted all to know, it's feasible but I would not recommend Scotiabank. We hope to refinance, if possible, once we obtain residency and move to the country next year. 

I did finance with Scotiabank about two years ago.  Be careful with the refinancing.  They may have some penalties for paying off the loan early.  It goes by a certain percentage of the loan.  Please do your research before squeezing the trigger.

I was approved by Scotia and Banco Popular.  BP was approved and signed within a couple of months. Scotia was started 3 months before BO and still hadn’t approved… until they found out BP had!  SMH.

In all fairness,the BP process was spurred on by the developer.

@kpetit

We will research. Thank you.

Hello, I am glad I found this thread. I started the process of buying a condo there in Punta Cana, The construction is underway and almost finished! I have almost paid 20 thousand of my money but nervous once the project is complete I won’t be able to finance. After reading these comments. I am thinking of pulling the plug. By the time the condo is complete I will have paid around 45k. The cost is 86,600. I do not own a home in the United States. The property developer does say finance is available on delivery. I have already hired a lawyer and my real estate broker is firm on they will finance you. I just don’t believe that and don’t want to keep putting  money if I can’t get financed in the end. Yeah I could work my butt off and probably pay that whole 86,600. But omg it would be extremely challenging. Not sure what to do. I have started the process of cleaning my credit up. Phase 1 and 2 are due for completion in April and phase 3,4,5 will be complete in August 2024, which is the time o am expected to pay up or finance. The most I will probably need a line for is the 30 grand! That’s it! The deeds and title have been checked I have all that paper work! Just nervous about the cost at the end.

Often the developer backed financing loans are real.  You will have covered about 50% of it and it's realistic to expect to get the mortgage.  If it was sold that way it stands to reason it's available.

Ask the developer for more details and then contact the bank!