Financing

In negotiating the purchase of any property (house, land or otherwise) it is important that you know where the funds for the purchase will come from. For that reason, MCM Realty always seeks to establish upfront with prospective purchasers, their source of financing.

However, in the event that a prospective buyer is unsure of the source of their funds, we can assist by providing advice/guidance or even actively sourcing such funding, for a small fee.

We stronly advise prospective home buyers that when negotiating mortgage funding they should assess their capacity to repay based on the use of an interest rate in the range of 8% - 9%. We advise this despite the lower mortgage interest rates currently prevailing in Barbados. This advice is based on two facts:

a) A review of mortgage interest rates over the last 40 years will show that the average exceeded the currently prevailing rates by over 1%.

b) Mortgage interest rates in Barbados are fixed only for short periods and hence will vary over the life of a mortgage. Assessing your capacity to repay using the higher rate suggested will mean you are more likely to comfortably handle the payments if/when rates and consequently your monthly instalments increase.