
Thanks to increased regulation over the past several years and an aversion to risky or toxic assets, the Banks in the Dominican Republic possess solid capital and are looking for qualified Buyers, Entrepreneurs, Developers, and Business Owners to lend their money to. Though these banks are eager to provide loans to any qualified candidate, their focus is on the Bavaro Punta Cana region due to its impact on both Tourism and the Economy.
Mortgages are a relatively new concept to both Punta Cana and the Dominican Republic. As a result, the rates were high, the terms not sufficient, and the application process was similar to that of going thru Spring Training. Due to these reasons, less than 1% of all real estate transactions in the Bavaro Punta Cana region are closed using Bank Financing.
Recently things have changed for the better and Bank Financing is now much more competitive!!
For a Condo or Villa to qualify for a Bank-Originated Mortgage, the Condo or Villa must have its Individual Title or the Developer must have submitted the Land Title (or “Mother” Title) for the entire community to the Bank to hold until the Mortgage is paid off. This is similar to how traditional Mortgages work in North America and most other parts of the world.
When a Developer first begins construction on a new community, there is currently only the Mother Title for the land of the entire community. Once the structures are built, the Developer can then apply for the Individual Titles, though some Developers prefer to wait until the entire community has been completed. Thanks to the recent transfer of all Title Processing from a paper-based system to a computer-based system, this process currently takes about 12 months. The paper-based system would take up to 2 years or even longer.
Most banks will require any or all of the following information to process a loan application:
· Completed and Signed Loan Documents
· Proof of Life Insurance
· Copy of Passport(s)
· Copy of Income Tax Returns
· Signed Authorization for International Credit Report
· Copies of your last 3 month’s Bank Statements
· Monthly Income Statements
· Open a Bank Account with the Lender
Listed below are the rates and terms quoted by the leading banks offering loans in the Punta Cana Bavaro region as of October 2011:

Banco Popular:
20% Down Payment, 20 Years, 9% APR (USD Only)
APR is Fixed for 1 year and then adjusts according to the market

BHD:
15% Down Payment, 15 Years, 10% APR (USD Only)
APR is Fixed for 1 year and then adjusts according to the market
Scotia Bank:
20% Down Payment, 25 Years, 6.95% APR (USD Only)
APR is Fixed for 1 year and then adjusts according to the market
Please note that all Rates and Terms are subject to change without notice. REMAX Tropical is publishing Rates and Terms as they have been provided to us by the Lenders. Rates and Terms are locked in once the Loan has been approved.
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