Lenders require a down payment of normally between 5 – 30%. Most lenders do not charge for pre- payment penalties. Interest will vary between 2 to 4 percentages, or better, above the prime rate which at the moment is 3.50%. Once your mortgage application is complete, most lenders will process it within 30 days. Most delays occur because of missing information required by your lender. Other factors impacting your debt service ratio: Immigration status, profession, age, overall financial position, credit history all play a part in determining the terms of your mortgage. A 10 to 15 year term is considered normal although lenders do offer up to 30 year mortgages. You will pay a stamp duty of 1% (1.5% if over $300,000) on the loan. The bank will arrange an attorney to work on yours and its behalf through the process at a rate of .5% to 1% of the purchase price of the property. Foreign borrowers, in most cases, will find that interest accrued on their mortgage in Cayman Islands is tax deductible. There are also companies who will shop your mortgage for you thus eliminating the need for you to contact individual banks. Also, there are developers who will finance their projects normally from two to five years and tailor the financing to overseas buyers as well.
The following are general requirements for personal mortgage applications (may vary from bank to bank):