Mortgage for non-residence
Mortgages typically end at the client’s retirement age of 65. However, the maturity date of a mortgage can occur at a higher client’s age depending on income and local life insurance coverage.
The Following requirements, usually, applies for an Aruba loan/mortgage for a home:
- Minimum client age is 21;
- A work contract with proof of income over a period of 12 months (i.e. W-2 tax returns, or income declaration from an internationally recognized accounting firm);
- Two signed recommendation/introduction letters from the applicant’s financial institutions (bank, stock brokerage firm, etc) addressed to the Aruban bank;
- Photocopy of the applicant’s and spouse’s passport and driver’s license;
- An appraisal report from a recognized appraiser on Aruba (report cannot be older than 6 months since date of report publication; fee varies from $170 to $300 depending on house size);
- 40% down payment on the residential home’s market value/sale price or construction offer;
- A local fire insurance policy for the reconstruction value of the residential home;
- A local life insurance policy equal to the amount of the mortgage with the Aruban bank as first beneficiary. Life insurance must be confirmed by the insurance company before first disbursement can be made or signing of the mortgage deed;
- A mortgage deed established and registered on Aruba ceded to the Aruban bank;
- Three monthly payments on a deposit/savings account (interest rate of 4 % or at current market rate) at the Aruban bank as an eventual payment reserve.
Loan payments are usually made via a checking account at the Aruban bank.
