Mortgages on Bonaire

Although the number of home owners increases and the prices for real estate keep rising, mortgaging is still not as common on Bonaire as it is on other Caribbean islands, or in Europe or the United States of America. The standards for mortgaging are different on Bonaire and especially the amount of the mortgage therefore can be disappointing to some.

However, over time some very good mortgage possibilities have become available with very good conditions, especially for Bonairean standards. It is absolutely possible to obtain a mortgage for a second residence for non residents under certain conditions possible. The main requirement is proof of income in the country of origin. The applicant’s age is one of the main aspects for the determination of the duration of the mortgage. On Bonaire it is customary that the mortgage is fully redeemed at the age of 65. As a supplemental security for the granted mortgage a life insurance will always have to be concluded.

On Bonaire one can choose between two different kinds of mortgages.

The annuity mortgage. With this form one pays interest plus redemption monthly. This way the gross mortgage burden remains the same for the duration of the mortgage, but because since the tax benefits decrease over time, the net monthly costs will slowly increase. The monthly mortgage burden will be calculated in such a way that at the end of the duration of the mortgage a full redemption will have been reached. It is obligatory to take a life insurance to cover the risk of death. For such a mortgage form it is possible to obtain a mortgage interest rate of 7,25 %.

The mortgage life insurance. With this form one only pays interest monthly, and one also needs to take a life insurance policy that will fully redeem the mortgage at the end of its duration. So with this mortgage form one pays interest plus the premium for the life insurance policy. The great advantage of this is that the monthly costs will remain the same for the complete duration of the mortgage and that the tax benefits remain unchanged. Furthermore one does not need to take out a separate life insurance. The typical interest rate for such a mortgage form is: 6,50 %.

Your one stop broker can be of further assistance.