Bahamas Mortgage Prequalification Calculator

What You Need to Know About Bahamas Mortgages Before Buying

Can a foreigner get a mortgage in The Bahamas?

Yes. Several Bahamian banks lend to non-residents, including RBC Royal Bank (Bahamas), CIBC FirstCaribbean, Scotiabank, and Bank of The Bahamas. Foreign buyers typically face stricter terms than residents: a minimum 35% down payment (65% maximum loan-to-value at RBC), loan terms of 15–25 years depending on lender, and interest rates between 5.5% and 8%. Lenders follow Central Bank of The Bahamas regulations plus international AML and KYC standards, so expect enhanced due diligence on source of funds. Many foreign buyers in The Bahamas opt to pay cash, but financing is available for well-qualified borrowers with strong credit and documented income.

What interest rates should I expect?

The average residential mortgage rate in The Bahamas was approximately 5.32% as of mid-2025, per the Central Bank of The Bahamas. The CBOB bank rate has held at 4.00% with a 4.25% prime rate since 2017. Actual rates depend on your profile: Bahamian residents typically see 4.75%–6.5%, while non-residents pay 5.5%–8%. Rates are generally fixed for the initial term. Some lenders offer variable rates tied to Bahamian prime rate plus a spread, which can be attractive in a stable rate environment.

How much down payment do I need?

This depends on residency status and property type. Bahamian residents can put as little as 5% down on an owner-occupied home (RBC offers up to 95% financing with mortgage indemnity insurance) or 10% standard. Non-residents need 35% minimum at RBC (65% max LTV), and 30–50% at other lenders. Investment property requires a larger down payment — RBC requires 33.3% minimum for resident investors with terms up to 20 years. Glenn recommends foreign buyers have at least 45% of property value in liquid funds to cover both down payment and closing costs comfortably.

Is it better to pay cash or get a mortgage?

Cash purchases are faster (no underwriting delays), give you stronger negotiating leverage, and eliminate interest costs. However, financing preserves liquidity for other investments. Since The Bahamas has no capital gains tax, the leverage math is straightforward — if your investment returns exceed the mortgage rate, financing can make sense. Many of Glenn's international clients use a hybrid approach: paying cash for the property, then establishing a home equity line of credit in The Bahamas to free up capital later.

Can I get a mortgage from a bank in my home country?

Some international buyers finance through their home-country bank using a portfolio loan, home equity line of credit, or cross-border lending facility. This can sometimes offer better rates than Bahamian banks, especially for borrowers with strong banking relationships. The property may need to be held in a specific legal structure. Glenn works with buyers who use both local and international financing and can coordinate with your existing bank.

Bahamas Mortgage Lenders Compared: Residents vs. Foreign Buyers

Document Checklist: What Bahamas Lenders Require

Having your documents organized before application speeds up the process significantly. Here's what most Bahamian banks request:

All Borrowers

• Valid passport (certified copy)
• Proof of address (utility bill or bank statement from last 3 months)
• Last 2 years of tax returns (or audited financials if self-employed)
• 6 months of bank statements showing income deposits and savings
• Employment letter confirming position, tenure, and salary
• Signed sale agreement or offer letter for the property
• Property appraisal (ordered by the lender)

Additional for Foreign Buyers

• Credit report from your home country (TransUnion, Equifax, or Experian)
• Proof of source of funds (for AML/KYC compliance)
• Character references (some lenders require 2–3)
• Police clearance certificate (some lenders)
• Proof of assets outside The Bahamas

Additional for Self-Employed Buyers

• Business registration documents
• 2 years of audited business financial statements
• Accountant's letter confirming income

The Bahamas Mortgage Process: Step by Step

From first inquiry to closing day, here's exactly what to expect when financing a Bahamas property purchase:

1. Pre-Qualification (1–7 days)Discuss your goals, budget, and property type with Glenn and a lender. The bank reviews your basic financials to estimate your maximum loan amount, rate, and down payment. No commitment required — this sets expectations before you start viewing properties.
2. Property Search & OfferWith your budget confirmed, Glenn helps you find the right property. Once you identify it, submit a signed offer with your attorney. The sale agreement should include a financing contingency clause protecting you if the mortgage falls through.
3. Full Application (1–2 days)Submit your complete document package to the lender along with the signed sale agreement. The more organized your file, the faster underwriting moves.
4. Valuation & Title Search (1–3 weeks)The lender orders an independent property appraisal. Simultaneously, your Bahamian attorney conducts title searches and verifies clear ownership. For foreign buyers, the attorney also prepares the Bahamas Investment Authority registration.
5. Underwriting & Conditional Approval (1–4 weeks)The bank reviews everything — income, credit, property value, title — and issues a conditional approval letter. Typical conditions include finalizing insurance, confirming source of funds, and clearing any outstanding items.
6. Final Commitment & Closing (2–6 weeks)Once all conditions are met, the bank issues the final commitment letter. At closing: funds are released, documents are signed, the 1% mortgage stamp duty is paid, the conveyance is registered with the Bahamas Land Registry, and you receive the keys. Total process: typically 30–60 days for residents, 45–90 days for foreign buyers.

Full Closing Cost Breakdown: Cash vs. Financed Purchase

Understanding exactly what you'll pay beyond the purchase price is critical for budgeting. Here's a side-by-side comparison for a $1,000,000 foreign buyer purchase:

Note: Seller separately pays their half of VAT plus real estate commission (6% on improved property). Legal fees vary by attorney — standard is 2.5% but negotiable for higher-value transactions. VAT at 10% applies on legal fees, commissions, and appraisals. Property insurance (1–2% of value/year) and property tax are ongoing costs not included above. See the property tax calculator for annual tax estimates.

Should You Pay Cash or Finance? The Math on a $1M Bahamas Property

Most foreign buyers pay cash, but here's how the numbers compare over 15 years for a $1,000,000 purchase:

The financing route costs $369K in interest but frees up $637K that could generate $1.1M+ if invested at 7% annually over 15 years — a potential net advantage of over $700K. Of course, investment returns are not guaranteed, and this analysis doesn't account for the psychological benefit of owning outright. Glenn can model both scenarios for any specific property and your personal situation.