We’ve been getting a lot of calls from people confused about the regulations around home loans in the Dominican Republic. A lot of people are confused about what they can or cannot do here, so we want to make a few things clear.
First of all, the real estate industry in the Dominican is unregulated – you can imagine the sort of chaos and confusion that can lead to. Many agents who work here are simply unaware of the banking rules, and they’re not properly trained or knowledgeable enough to advise clients about financing.
Many agents have never worked with the banks or are not authorized to work with banks, and so they claim home loans for foreigners are not available- so whatever advice they give you, you should take it with a pinch of salt.
Should you apply for a loan pre-approval before looking at properties? Absolutely yes! As a REALTOR®, we want to help you find your dream vacation or retirement home, and we don’t want to waste your time. If we know exactly what your budget is before we start looking, we can show you the most suitable properties.
What’s the big deal about being pre-approved for financing?
In short, it’ll make your deal go through a lot faster and with much less hassle. If a seller knows you’ve been pre-approved for a mortgage, then they’re much more likely to accept your offer.
So can I get a second home loan in the Dominican even though I don’t live there yet?
YES! UK, Canada and United States citizens (including residents of Puerto Rico) are all eligible for financing through some banks. It’s possible to get up to 80% financing on a 25-year mortgage. Interest rates currently start a 9%.
Have any more questions or need help with getting pre-approved? Don’t hesitate to contact us!