Purchasing a home in Curaçao is an exciting step, but arranging the right financing can feel overwhelming. In this article, I’ll guide you through the key costs and considerations involved in buying property on the island.

The 5 Most Frequently Asked Questions About Buying a Home in Curaçao:

1. How much can I borrow?
2. What costs should I account for?
3. How much personal capital do I need to contribute?
4. How do existing debts (including student loans) affect my borrowing capacity?
5. What is a bank guarantee, and do I need one?

1. How Much Can I Borrow?

When purchasing your first home in Curaçao, understanding how much you can borrow is crucial. Most banks apply standard formulas to determine your borrowing limit, taking several factors into account:

• Income (Yours and Your Partner’s): Your combined income is the primary factor influencing borrowing capacity. Employment status, contract type, and – if you own a business – financial statements and forecasts are required.
• Outstanding Debts (Including Student Loans): Debts reduce borrowing capacity. Banks assume that existing debt payments impact your ability to cover mortgage costs. Consolidating debts into your mortgage or accounting for obligations like alimony may help.
• Property Value: Banks prioritize security and will not lend more than the appraised value. An official valuation report by an approved appraiser is required.
• Age: Your age affects the mortgage term and monthly repayment. Closer to retirement, borrowing capacity may decrease.
• Residency Status: Non-residents can usually finance up to 70% of the property value, while residents may borrow up to 100%. Non-residents must cover at least 30% of the purchase price plus additional costs.

2. What Costs Should I Consider?

In addition to the purchase price, buying property in Curaçao incurs additional buyer’s costs (k.k.). Common expenses include:

• Transfer Tax: Typically 4% of the property value. Monumental buildings are exempt.
• Appraisal: Lender-required valuation fees average 1.2% of property value, with some starting at 700 NAF.
• Structural Inspection: Recommended to uncover defects. Costs range from NAF 300–1,000 depending on property size.
• Notary Fees: Facilitate property registration and fund transfer. Government-regulated at 1–2%.
• Mortgage Advice & Brokerage: Expert guidance ensures the best mortgage deal. I manage the process for a stress-free experience.
• Buyer’s Agent: Fees range 1–2% of property value; negotiable.

3. How Much Personal Capital Do I Need?

Residents may finance up to 100% of the property’s value, but additional buyer’s costs average 6%. Banks rarely cover these, so personal capital from savings, previous equity, or family contributions is required.

4. How Do Debts Affect My Mortgage?

Outstanding debts reduce borrowing capacity. Student loans must be disclosed. Banks may detect regular payments from accounts like DUO.

Solutions if Your Borrowing Capacity Falls Short:

• Pay Off Debts: Increases borrowing capacity.
• Consolidate Debts: Incorporate existing loans into your mortgage.

5. What Is a Bank Guarantee and Do I Need One?

A bank guarantee reassures the seller the transaction will proceed. It typically covers 10% of the purchase price. Banks charge ~1% of the deposit as a service fee. E.g., a NAF 30,000 deposit incurs NAF 300 in fees.

Feeling Overwhelmed by the Process?

Our team at Sun Life Real Estate guides you step-by-step through the entire process, ensuring a smooth and transparent experience.

Let’s simplify the journey – together.

📧 [email protected]
📞 +5999 686 2994

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