Get a mortgage in the Cayman Islands

As an attorney, I am often asked questions about obtaining a mortgage to buy real estate in the Cayman Islands. Below are the answers to some of the most common questions I am asked.

Q: What are my options if I need a mortgage to buy land in the Cayman Islands?
A: There are several retail banks on Grand Cayman, all of which offer mortgage finance to purchasers. It is worthwhile to make an appointment with a loan officer in order to discuss your requirements. It is also worth seeing if you can get approved in principle for a loan before searching for a property so that you have an idea of properties in your price range. Banks are happy to walk you through the process of getting a home loan and will take details such as income, savings and expenditure into calculating what kind of loan you qualify for. Private financing is possible, but is not commonly used in the Cayman Islands.

Q: As a non-resident, am I able to get a mortgage in the Cayman Islands?
A: There is no reason in law that a non-resident should not be able to obtain financing, but the banks may have slightly more stringent requirements for someone not resident in the Cayman Islands. Once again, an early chat with the banks in order to ascertain their requirements for lending could be useful.

Q: Can my onshore lender lend me money to buy a property in the Cayman Islands?
A: Yes, there is nothing to stop you from using funds secured on a property overseas to buy property here. If your onshore bank wanted to secure its lien — called a "charge" here — over land in the Cayman Islands, it is possible for them to do so, but they would need to be registered as a foreign entity with the Cayman Islands Government first. Many onshore banks are not keen to go through the process just to secure a single loan here and so local financing tends to be the overwhelming choice for non-resident people purchasing real estate here in Cayman.

Q: Is stamp duty payable on a mortgage of a property in the Cayman Islands?
A: Yes, stamp duty is payable on a mortgage of property. This is calculated as 1% of the sum secured up to CI$300,000 (approximately US$365,000) and 1.5% thereafter. This is payable when the mortgage documentation is submitted to the government's Lands and Survey department.

This article first appeared in February's print edition of Camana Bay Times, under the headline "Ask the Expert: Getting a mortgage in the Cayman Islands."

About the author

Ian Jamieson is a partner of the Bedell Cristin law firm in Camana Bay. He heads the firm's Cayman Inward Investment Group. His areas of expertise are real estate and banking and finance.