Bridging the Gap to Your Dream Home on Curaçao

Have you found your dream home on Curaçao but haven’t sold your current property yet? A bridging mortgage can help you manage the period between purchasing your new home and selling your existing one. Below, we explain how this type of mortgage works and how it can benefit you.

What is a Bridging Mortgage?

A bridging mortgage is designed to cover the financial gap between the purchase of a new home and the sale of your current property. During this interim period, you continue to pay the mortgage on your old home while securing a mortgage for your new property. This means temporarily higher monthly expenses.

In Curaçao, bridging mortgages are generally not included in the maximum mortgage assessment, allowing you to borrow more. Additionally, this type of mortgage lets you access the equity from your current property to partially finance your new home. This can help reduce the overall increase in monthly costs during the transition.

Once your old home is sold, the bridging loan is repaid, and the remaining balance is transferred to a new, regular mortgage.

Interest Rates and Payments

With a bridging mortgage, you only pay interest – no principal repayments are required during the term. However, the interest rate tends to be slightly higher than that of a standard mortgage because the bank assumes a greater risk.

A bridging mortgage is taken out alongside a regular mortgage, with the interest calculated as a surcharge on the standard mortgage rate. When your old mortgage is repaid, the surcharge is removed, and you continue paying the regular mortgage interest.

Tip: Mortgage interest on a bridging loan is tax deductible!

Costs Associated with a Bridging Mortgage

While a bridging mortgage incurs additional costs, you do not end up paying for two full mortgages. The equity from your existing home is advanced by the bank, helping you reduce the need for extra financing. This helps control the expenses associated with temporarily owning two properties.

However, you should also factor in costs related to the new mortgage, including advisory and brokerage fees, appraisal costs, and notary fees.

The combination of dual mortgages introduces financial uncertainty along with added expenses. It’s highly recommended to consult with a mortgage advisor to assess all options. A professional advisor can provide clear insight into the associated costs and help you make an informed decision.

Key Conditions of a Bridging Mortgage in Curaçao

• Maximum term of two years
• Penalty-free repayment at any time
• Interest-only payments, no principal repayment
• Mortgage interest deduction is applicable

These favorable conditions ensure that the increase in monthly expenses remains limited, providing flexibility during the transition period.

Advantages of a Bridging Mortgage

• Covers double mortgage costs and additional expenses
• No interim repayments required
• Flexible repayment terms – penalty-free and at any time

Disadvantages of a Bridging Mortgage

• Temporary increase in monthly costs
• Risk of residual debt if the property is not sold within two years

This article was written by Adriaan Smit, Sales Broker at Sunlife Real Estate Curaçao.
For more information or personalized advice, contact me directly at:

📧 E-mail: adriaan@sunlife.realty 
📱 WhatsApp: +5999 686 2994

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