Mortgages for Foreign Nationals in Bahamas
Lenders and Banks in Bahamas
While it is possible for foreign nationals to obtain mortgages from local banks and other lenders in the Bahamas, it may be more difficult and have stricter requirements than for Bahamian citizens. Foreign nationals may be required to provide more documentation, such as proof of income and a valid work permit, and may be subject to higher interest rates. Additionally, some lenders may have specific requirements for foreign nationals, such as a higher deposit. Some of the local lenders that provide mortgages in Bahamas include:
- Bank of The Bahamas
- Commonwealth Bank Limited
- Fidelity Bank (Bahamas) Limited
- Royal Bank of Canada (Bahamas) Limited
Deposit Requirements for Buying Property in Bahamas
When buying a property in Bahamas, the deposit required will vary depending on the lender and the specific circumstances of the transaction. Typically, a deposit of 20-30% of the purchase price is required. However, some lenders may require a higher deposit or may have different requirements for foreign nationals.
Responsibility for Outstanding Debts on Property in Bahamas
In Bahamas, new property owners are not typically responsible for any outstanding debts on the property, such as unpaid taxes or utility bills, that were incurred by the previous owner. However, it is important for buyers to conduct a thorough investigation of the property and any outstanding debts or liabilities before purchasing to avoid any surprises later on. It is also important to note that, when buying a property, the buyer should conduct a pre-purchase building and pest inspection, as well as a title search to ensure that there are no hidden debts or issues with the property. Additionally, it is always recommended to hire a local attorney to assist with the purchase process and check the title of the property to ensure there is no outstanding debts or liens on the property. It is also important to note that, foreign buyers are subject to an additional stamp duty of 7.5% and non-Bahamians are subject to a property tax of 2% of the property value, which is paid annually.