Mortgages & Borrowing
The prime rate in Cayman normally fluctuates in accordance with changes in the United States Government Federal Reserve rate, also referred to as the “New York Prime Rate.” Banks usually ask for deposits of between 10%–35% as a contribution towards the purchase price or construction cost. Unlike the UK, interest-only mortgages do not exist in Cayman. Mortgage amortisation terms are normally offered from 15-30 years and can be taken out in CI or US dollars. It is worth comparing what kind of deal the different banks will give you, as a variance of 1% or even 0.5% on your interest rate will make an enormous difference. Banks will usually charge between 1-3% above the prime rate, giving the lower percentage rate to those with the greater deposit. Banks also charge a commitment fee of up to 1% of the loan amount and some charge an early repayment penalty. It is recommended that you establish a meeting with your chosen bank to determine the best possible rate and terms that can be offered. Cayman’s banks have historically been very cautious when lending money.
For more information on mortgages and a list of local banks, see our Money, Banking and Mortgages page.