Question: Artur from the U.S. asks "Can I get local bank financing in Belize?"
Answer: Can I get financing in Belize? This is probaly one of the most commonly asked questions. After all, not everyone has several hundred thousand dollars just sitting in a bank account. Most of my clients have their money tied up in some form of investment or another. So even those who can technically pay cash for their purchase in Belize want to know about financing options they can obtain locally.
The good news is, local banks here can and do offer property loans to both locals and foreigners. We usually work with 2 of the larger banks, Atlantic International and British Caribbean Bank as well as the smaller Belize City based bank, Choice Bank. Our clients have been very happy with the service and attention of these three.
They all lend money for raw land, improved property, investment and vacation homes and even construction loans. The process for obtaining approval is similar to that of Canada and the U.S. But with a few significant variations.
First, there is no pre-approval process here. You submit your application for along with a signed offer to purchase a specific property. This is important to know. So if you plan on using local bank financing we write any offer to purchase with a financing contingency. The bank considers each and every loan based not just on the qualifications of the buyer but also on the property itself.
Second, the terms here are different from what you may be used to. For example, all banks require 40% down on the purchase price amount. Some require 50% but 40% is the norm. This is also very important to know up front before looking at real estate in Belize. It tells you right away how much property you can afford based on how much cash you have to work with. A good rule of thumb to use is to know that you'll need about 47% of the purchase price in cash.
Why 47%? Well, the banks require 40% down. Plus you'll have your 5% stamp duty and your 1% closing costs to cover. That adds up to 47%. So if you are looking at a property that is listed for $200,000 you'll need to have $94,000 cash on hand in order to purchase it using local bank financing.
Answer: Can I get financing in Belize? This is probaly one of the most commonly asked questions. After all, not everyone has several hundred thousand dollars just sitting in a bank account. Most of my clients have their money tied up in some form of investment or another. So even those who can technically pay cash for their purchase in Belize want to know about financing options they can obtain locally.
The good news is, local banks here can and do offer property loans to both locals and foreigners. We usually work with 2 of the larger banks, Atlantic International and British Caribbean Bank as well as the smaller Belize City based bank, Choice Bank. Our clients have been very happy with the service and attention of these three.
They all lend money for raw land, improved property, investment and vacation homes and even construction loans. The process for obtaining approval is similar to that of Canada and the U.S. But with a few significant variations.
First, there is no pre-approval process here. You submit your application for along with a signed offer to purchase a specific property. This is important to know. So if you plan on using local bank financing we write any offer to purchase with a financing contingency. The bank considers each and every loan based not just on the qualifications of the buyer but also on the property itself.
Second, the terms here are different from what you may be used to. For example, all banks require 40% down on the purchase price amount. Some require 50% but 40% is the norm. This is also very important to know up front before looking at real estate in Belize. It tells you right away how much property you can afford based on how much cash you have to work with. A good rule of thumb to use is to know that you'll need about 47% of the purchase price in cash.
Why 47%? Well, the banks require 40% down. Plus you'll have your 5% stamp duty and your 1% closing costs to cover. That adds up to 47%. So if you are looking at a property that is listed for $200,000 you'll need to have $94,000 cash on hand in order to purchase it using local bank financing.
If you are interested in seeing the loan application documents just send me an email and I'll send them to you. We can also go over the documentation required and what to expect when financing your home here in Belize.
Hope this was helpful,
Dennis Kay II
RE/MAX Island Real Estate
Email: belizeislandsrealestate@gmail.com
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