Financing Your Purchase
Recently we have noticed that it is becoming even more difficult for our purchasers from overseas, even if they are Dominican, to obtain mortgages, especially from the Banks who have their headquarters outside of Dominica.
As everything has to be approved from overseas the process can be extremely slow, cumbersome and difficult. A very dear friend of mine recently explained to me how he was able to Finance his purchase in Dominica. His experience is from England so I would like to hear from any-one who has used the same process in another country.
Overseas clients wishing to purchase in Dominica often have trouble raising finance in their own country to purchase a property overseas. This is understandable as the lending institution will not lend on an overseas property where they do not know the market and cannot view the property. This is where an Asset Equity Loan can be invaluable.
Asset Equity Loan- An Asset Equity Loan is essentially a business loan and with such a loan, you can buy your dream home in Dominica.
In England the loan is given where the client has Assets in the home country in which there is some equity. If you are Leasing out a property in the UK the loan can be given on the basis of the rental income.
With an Asset equity loan if , for example, you know you will be paying it back over a specified period , it is possible to lock in the interest rate for that period. You can even buy currency forward at a fixed rate.
Who might benefit – Any client with an asset in their country of origin , there are clients who have money locked into an investment plan that will not be released for a fixed number of years or if released early would lose out substantially and such clients could benefit from an Asset Equity loan.
Benefits of Asset Equity loan
- You are better able to negotiate with the seller as you will now be a cash buyer.
- Lower interests rates- in Dominica rates start around 7%
- Fixed interest rates are available
- Usually No fees for redeeming the loan early.
- Less stress
Now you know how to raise funds to finance your purchase why not check out our affordable Dominican properties.