Hypotheekgarantie Bonaire

Who qualifies for Hypotheekgarantie Bonaire?

You may qualify for Hypotheekgarantie Bonaire if:

• you have a valid identification document (sédula) and proof that you are a permanent resident of Bonaire;
• you have a permanent employment contract;
• the purchase price and the mortgage loan do not exceed US$ 420,000 (including buyer’s closing costs);
• you purchase the property as your primary residence.

Why choose Hypotheekgarantie Bonaire?

Hypotheekgarantie Bonaire provides an additional financial safety net throughout the entire term of your mortgage. You pay a one-time guarantee fee of 0.4% and benefit from a 0.1% lower mortgage interest rate. In addition, the guarantee provides financial protection if unforeseen circumstances affect your ability to repay your mortgage. Debt forgiveness may be possible if:

• your personal circumstances have changed due to reasons beyond your control, such as:
  1. disability or incapacity for work;
  2. death of your partner;
  3. involuntary unemployment;
  4. relationship breakdown.
• you have made every reasonable effort to minimize the remaining mortgage debt.

The website of Hypotheekgarantie Bonaire contains several examples of situations in which debt forgiveness may be granted.

What documents are required for your mortgage application?

Whether or not you choose Hypotheekgarantie Bonaire, MCB requires a complete financial overview before assessing your mortgage application. At a minimum, you should provide:

• a valid identification document;
• an employer’s statement and proof of income;
• an overview of your current financial obligations;
• the signed purchase agreement for the property;
• an appraisal report.

The appraisal report is particularly important, as the bank must determine whether the agreed purchase price reflects the property’s market value. The foreclosure value stated in the appraisal report is one of the factors determining the maximum mortgage amount that can be obtained under Hypotheekgarantie Bonaire. For more information about official property appraisals and property valuation statements, please visit our appraisal page.

If the appraisal report indicates that improvements to the quality of the property are necessary, a technical inspection report must also be submitted. The building inspector from Taxabon or Pieters Appraisal Services must assess the costs of the required improvements and include them in the report.

Where do I apply for Hypotheekgarantie Bonaire?

Maduro & Curiel’s Bank Bonaire (MCB) is currently the only bank offering mortgages under Hypotheekgarantie Bonaire. MCB first assesses your mortgage application, after which Stichting Waarborgfonds Eigen Woningen decides whether the guarantee will be granted. When purchasing a property, it is important that the financing contingency in the purchase agreement explicitly states that Hypotheekgarantie Bonaire is being applied for. Many real estate agents use a standard clause requiring at least two rejected mortgage applications before the buyer may terminate the agreement. Since only MCB Bonaire offers Hypotheekgarantie Bonaire, this clause should be amended accordingly.

Sample financing contingency clause for the purchase agreement

This purchase agreement is entered into subject to a financing contingency. The Buyer shall have the right to terminate this Agreement if the Buyer has not obtained, or been offered, within ten (10) weeks after the full execution of this Agreement, a mortgage loan equal to 100% of the purchase price under the conditions of Hypotheekgarantie Bonaire. The Buyer undertakes to make every reasonable effort to obtain the above-mentioned financing.

If the Buyer invokes this financing contingency, notice of termination must be given in writing or by email no later than the final day of the above-mentioned period, together with a written rejection of the mortgage application issued by Maduro & Curiel’s Bank (MCB) Bonaire, demonstrating that the requested mortgage loan equal to 100% of the purchase price under the conditions of Hypotheekgarantie Bonaire has not been granted. Upon such termination, both parties shall be released from all obligations under this Agreement.

The Bonaire housing market in figures

Since the introduction of Hypotheekgarantie Bonaire in 2021, Statistics Netherlands (CBS) has closely monitored the island’s housing market. More than two-thirds of all homes sold are now above the guarantee limit. Additional statistics can be found in the CBS report on Hypotheekgarantie Bonaire.

Selling your property

Have you encountered financial difficulties and are you considering selling your home? Feel free to contact Harbourtown Real Estate Bonaire for a no-obligation consultation. We can provide a free valuation of your property. In addition, our rental department can help you find a suitable rental property.