Step 1: Determine how much you can borrow
Before you start looking for a home, it is wise to find out how much you can borrow. Make an appointment with a mortgage advisor or bank. During this meeting, they will review:
- Your income, based on pay stubs and/or an annual income statement;
- Any other loans, such as student or auto loans;
- Your savings;
- Your family situation, including marriage, children, and support obligations.
Based on this information, the mortgage advisor or bank calculates how much you can borrow and how much of your own money you will need to contribute. Some banks finance up to 100% of the market value or purchase price—whichever is lower—including buyer’s closing costs. Other banks finance up to the forced-sale value, which is generally 90% of market value for new construction and 80% for older homes.
Step 2: Find your dream home
Once you know how much you can borrow, you can focus your search on homes within your budget. For example, if you qualify for a mortgage of XCG 500,000, look for homes priced between XCG 400,000 and ANG 550,000.
Use platforms such as Livinggoed to filter homes by price, location, and number of bedrooms. Once you find a suitable home, schedule a viewing with the real estate agent. Hiring a buyer’s agent may be a wise choice, as they can guide you through the entire process and negotiate on your behalf.
Once you and the seller agree on the price, a purchase agreement is prepared. This agreement includes:
- Details of the buyer or buyers and seller or sellers;
- The property’s cadastral description;
- The purchase price;
- Contingencies, which usually give you six to eight weeks to arrange the mortgage.
You will often be required to deposit 10% of the purchase price into the civil-law notary’s escrow account within 10 days after signing the purchase agreement.
Step 3: Submit your mortgage application
Take the signed purchase agreement to your mortgage advisor or to one or more banks to apply for financing. Have the necessary documents ready, including:
- Pay stubs, bank statements, passport or sedula;
- An extract from the population register;
- A property appraisal report, although a limited appraisal may sometimes be sufficient.
The bank may require you to obtain term life insurance and/or another life insurance policy. This often requires a medical examination, which is generally paid for by the insurer.
A bank committee reviews your application, which takes approximately four to five weeks. Stay in contact with your mortgage advisor or bank because the financing contingency has a deadline.
Step 4: Sign the mortgage agreement
If your application is approved, you will receive a mortgage offer. Read it carefully and make sure it allows additional principal payments without a prepayment penalty. This could save you thousands of guilders if you want to make extra payments later, for example after a salary increase or inheritance.
After you sign, the bank sends the mortgage instructions to the civil-law notary, who then prepares the deed of transfer and mortgage deed.
If your mortgage application is denied, request a written denial. You can use this letter to terminate the purchase agreement under the financing contingency and recover your deposit.
Step 5: Transfer ownership of the home
The transfer date is included in the purchase agreement as the target date. A few days before the transfer, the civil-law notary will send you:
- The draft mortgage deed;
- The draft closing statement;
- The draft deed of transfer.
On the transfer date, you and the seller meet at the civil-law notary’s office. The deed of transfer and mortgage deed are signed there. The home is then registered in your name with the Kadaster, together with the bank’s mortgage lien.
Congratulations! You are now officially the owner of your home in Curaçao.
Mortgage lenders in Curaçao
MCB Maduro & Curiel’s Bank
Orco Bank
RBC Royal Bank
Banco di Caribe
Vidanova Bank
APC Bank (formerly PSB Bank & CHB Bank)
ENNIA
