Mortgages in the Cayman Islands can be obtained from a local Class A bank as these are the banks which are authorised to lend money. It’s sensible to shop around, however, as rates are competitive and the percentage above prime (from 1%-5%) can be negotiated. The usual term for a mortgage is 20 years, although some banks will offer as much as 35 years.
Most Cayman banks offer mortgages with rates tied to the KYD and USD prime rate, which typically follows the US Federal Reserve 'New York Prime Rate'. Banks usually ask for deposits of between 10%–35% as a contribution towards the purchase price or construction cost. Long term interest-only mortgages do not exist in Cayman.
Mortgage amortisation terms are normally offered from 15-30 years, but typically don't exceed retirement age age, and long-term interest-only options are unavailable in Cayman.
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% and 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.
Organise a meeting with your chosen bank to determine the best possible rate and terms that can be offered.
Insurance Requirements for Mortgages
Not many people know that you must have life insurance, so the mortgage can be repaid in the event of death, before purchasing a home in the Cayman Islands. This, plus home insurance (and hurricane insurance), can affect your finances when purchasing a home. Your loan officer will advise on their bank’s specific requirements.
Numerous providers offer life insurance in Cayman. With life insurance, as with any product of this nature, it is definitely worth your while to shop around and check quotes, coverage terms, reputation and customer service strengths of several providers.
Here are a few recommended companies in the Cayman Islands that can provide life insurance advice and policies related to mortgages:
For more information, visit the Life Insurance page.
The following is a list of banks in the Cayman Islands that provide mortgages. We recommend you contact them all to get the best rates based on your circumstances.
