Mortgage options for foreigners in Curacao: how to finance a home as a non-resident

Do you dream of a house in Curacao, but you don't live on the island (yet)? Then you probably wonder what the financing options are. Can you even get a mortgage as a foreigner? How much do you have to contribute yourself? And what documents do you need?

In this blog, we list the most important mortgage options for non-residents. You can read what banks look for, what conditions apply and what the application process looks like. We also share practical tips to make your application run more smoothly.

Mortgage options for non-residents

Although foreign buyers can acquire real estate in Curacao without restrictions, local banks generally have stricter requirements for non-residents than for local residents. This is due to the increased risk that banks attribute to lending to persons without a permanent residence on the island.

Financing percentage and own contribution

Non-residents usually have a higher personal contribution than local buyers. In practice, you should count on a minimum personal contribution of 30% to 40% of the purchase price. Banks usually finance a maximum of 60% to 70% of the appraised value of the home.

Please note: for commercial mortgages or investment properties, the required personal contribution can even be as high as 50%, depending on the risk profile.

Interest rates and term

The mortgage interest in Curacao usually varies between 4.5% and 6%, depending on the lender, the term of the mortgage and the financial situation of the applicant. The maximum term is usually 30 years for homes and 15 years for land.

For private mortgages, some banks apply the condition that the loan must be fully repaid before or at the age of 65 or 67, depending on the retirement age in the country of origin. In practice, this requirement often also applies to the UBO (Ultimate Beneficial Owner) for commercial mortgages, especially when his or her personal capacity plays a role in the assessment of the financing.

Interest-only mortgages

Although less common, some banks in Curacao offer interest-only mortgages under strict conditions. With this type of mortgage, the borrower only pays interest during the term and the loan amount is only repaid at the end. This type of mortgage is often limited to a maximum of 50% of the market value of the home, and is usually only available to buyers with a strong financial profile.

Mortgage Application Requirements

• Applying for a mortgage as a non-resident requires careful preparation and the submission of various documents. Below is an overview of the most important requirements: 
• Proof of Income: Banks ask for proof of stable income, such as recent pay stubs, tax returns, or bank statements. 
• Creditworthiness: A good credit history is essential. Banks assess creditworthiness using international credit reports.
• Proof of Identity: A valid passport or other official identification is required. 
• Valuation report: An independent valuation report of the property is necessary to determine the market value. 
• Residence status: Although a residence permit is not always required, having a temporary or permanent residence status can make the mortgage application easier.

The mortgage process in steps

1. Preparation: Gather all necessary documents and determine your budget, including your own contribution. 
2. Orientation: Contact various banks in Curacao to obtain information about their mortgage conditions. 
3. Submit Application: Submit a mortgage application to the chosen bank, including all required documents. 
4. Assessment: The bank will assess your application and financial situation. This process may take several weeks. 
5. Mortgage offer: If approved, you will receive a mortgage offer with the conditions.
6. Signing mortgage deed: After acceptance of the offer, you sign the mortgage deed at a notary.
7. Transfer of ownership: The notary will arrange the transfer of the property, after which you will officially become the owner.

Tips for a successful mortgage application

• Hire a local mortgage advisor: An advisor with knowledge of the Curacao market can guide and advise you throughout the entire process. 
• Compare multiple providers: Mortgage conditions can differ per bank. By requesting multiple quotes, you will find the most favorable conditions. 
• Be transparent about your financial situation: Being open about your income and obligations prevents delays in the application process.
• Plan for additional costs: In addition to the purchase price, there are additional costs such as notary fees, transfer tax and possible renovation costs.

Interested in a home in Curacao?

Would you like to know more about your mortgage options or are you curious about our current housing offer? Then contact us without obligation . We are happy to think along with you and, if desired, put you in touch with reliable mortgage advisors on the island.