Requirements to be obtain a mortgage in Cayman Islands
Applications: List all your income and all your debts and your income. To figure out your total debt to service ratio (TDSR) you need to add up all your debts/car loans/credit cards etc your mortgage payment, your insurance and condo fees and the take your monthly income and divide that and times by 100 to get your % of TDSR. Your total debt to service ratio (TDSR) should be no more than 40%.
Some banks will finance with as low as 5% down payment but you must have excellent credit and if you want to buy an investment property as a local, you will need at least 30% down payment. Plus your fee of 7.5% stamp duty to be paid to the Cayman Islands Government. The banks won’t finance this fee.
If you are foreign buying property your credit score must to be excellent but also your Debt to service ration must also be healthy. Remember you have to prove to the bank you have enough assets and income to cover the loan you are requesting.
These are the following things you will need to give to any bank in Cayman Islands.
Identification: 2 or 3 forms of ID such as:
- Valid Passport
- Driver License or other Government issued ID
- Work permit stamp or Residency certificate.
Proof of Employment:
- Salaried income: an employment letter address to the bank and must include your position, date of employment and income and proof, at least 3 months of pay slips.
- Commission income: an employment letter address to the bank and must include your position, date of employment and income and proof, at least 6 months of pay slips,
- Self Employed: provide 2 years of financial statements and a valid Trade & Business License
If employed less than 2 years with current employment provide proof of previous Employer.
Proof of Physical address:
Own: Utility bill in your name, proof of strata payments and/or insurance policy
Renting: Copy of current lease agreement or letter from landlord and their ID
If current address less than 2 years then provide proof of previous address.
Proof of All Liabilities:
- Recent Credit cards statements
- Mortgage loan statement showing current balance and payments
- Mortgage statement showing last 2 years of payment history (this is for switching mortgages from one local bank to another
- Credit Report such as Equifax if you have lived outside of Cayman for the last 5 years
Strata information (all of these things, your Realtor will need to request for you)
- Section 6.4 (a document that comes from the manager of the strata detailing what is owed)
- Strata by laws and Strata insurance cover note
- Strata AGM minutes and financial statements
Offer to Purchase: that is the document that your realtor has written up with your offer price and instructions and (not the bank will not finance the chattels) and copy of the land register from the vendor your CIREBA agent can print this off for you from Lands and survey to help you save money.
Valuation: the bank will request their own valuator who values the home, condo or land you want to purchase to make sure they are lending on the market value.