Mortgages in The Bahamas

Who lends

Commercial banks

The banks licensed by the Central Bank of The Bahamas for everyday banking all offer home loans:

• Bank of The BahamasBahamian-owned; has a dedicated mortgage centre.
• Commonwealth BankBahamian-owned; homes, townhouses, condos and duplexes, plus home-improvement loans.
• Fidelity Bank (Bahamas)Bahamian-owned.
• RBC Royal Bank (Bahamas)Mortgage specialists in Nassau and Freeport.
• Scotiabank (Bahamas)Branches across New Providence, with mortgage specialists.
• CIBC Caribbean Bank (Bahamas)Formerly FirstCaribbean.
• Finance Corporation of Bahamas (FINCO)A long-standing mortgage lender.

Credit unions

Co-operative credit unions lend to their members, and some have mortgage programmes for particular jobs, such as teachers or public servants. You usually need to be a member, and to have saved with them for a while, before you can borrow. Credit unions that lend for homes include:

• Teachers and Salaried Workers Co-operative Credit Union
• Public Workers' Co-operative Credit Union
• National Workers Co-operative Credit Union
• Bahamas Law Enforcement Co-operative Credit Union
• Grand Bahama Co-operative Credit Union
• Bahama Islands Co-operative Credit Union
• One Eleuthera Co-operative Credit Union

The Central Bank of The Bahamas supervises credit unions and keeps the list of registered ones.

The Bahamas Mortgage Corporation

A government-owned lender set up to help low- and middle-income Bahamians buy homes, including homes built through the Department of Housing. Worth asking about if a bank turns you down or you're a first-time buyer.

What lenders look for

• Your debt service ratio. All your monthly loan repayments, including the new mortgage, divided by your monthly income. The Central Bank asks banks and credit unions to keep it within 50%, and it's the most common reason applications are turned down.
• Your down payment. Each lender sets its own minimum. Since the Central Bank relaxed its rules in December 2023, some lenders ask for less than the 15% that used to be common, and some lend up to 95% for owner-occupied homes. A bigger down payment usually gets a better rate.
• Steady income. Lenders usually want to see you've been in your job for a while, often at least a year, and self-employed applicants need two or three years of accounts.
• Your credit history. Lenders check how you've managed loans and bills, including with the national credit bureau. Paying down credit cards and car loans before you apply helps.
• The property. The lender sends a valuer, and lends a share of the valuation, not the price you agreed.

Documents to have ready

• Passport or voter's card, and your National Insurance (NIB) card.
• A job letter confirming your position, salary and start date, and recent payslips.
• Three to six months of bank statements.
• Details of any loans, credit cards and other debts.
• If self-employed: business licence and two or three years of financial statements.
• For the home: the agreement for sale and, for land you'll build on, the survey plan and building plans.

Costs that come with a mortgage

• Lender's application and commitment fees.
• A valuation of the property.
• Your attorney's fee for the mortgage deed, and stamp duty on the mortgage.
• Home insurance with windstorm cover, and usually life insurance for the loan.

The buying guide covers the other costs of buying, such as VAT on the property and the conveyance.

Questions people ask