Housing Loans

Which projects can be financed?

Loans will be made available to eligible borrowers for:

• New construction (to be owner-occupied)
• Improvement, repair, or expansion of owner-occupied dwellings
• Purchase of newly constructed houses (less than 1 yr)
• Securing property e.g. construction of fences and burglar bars

Priority will be given to the low and middle income persons who will be first time home-owners.

Who can borrow?

Belizeans who are gainfully employed for over one (1) year (including self-employed persons).

Repayment period

• New construction (concrete) - repayment period of up to 20 yrs
  Grace period not exceeding 8 months
• New construction (mixed or timber) -repayment period of up to 15 yrs
  Grace period not exceeding 8 months
• Home Improvement and expansion -repayment period of up to 15 yrs
  Grace period not exceeding 4 months

What are the Collateral requirements?

• A First Mortgage/Charge on the project site
• Upon completion, the property value must be at least 133% of the approved loan amount

Interest Rate

• 11.5% on the reducing balance (variable).

How much can a person borrow?

• No more than 190% of the client’s annual income but generally the following will apply:-

For newly constructed houses

• Single borrowers – $84,000
• Joint-borrowers - $126,000

For minor home improvements

• Single borrowers – $25,000
• Joint-borrowers - $44,000

Income Limit

• Up to $75,000 per annum.

Borrower’s Equity

• 10% of total project cost (value of land, existing investment, contribution in kind, Loan Closing Costs)

Repayment Capacity

• Total monthly payment obligation for long term debt should not exceed 35% of monthly income

Insurance Requirements

• Mortgage Cancellation and building insurance are mandatory
• Limit for  Mortgage Cancellation under DFC’s Group Insurance Scheme is $150,000

Submissions

• Approved  building plans and cost estimates (approved by the Central Building Authority or other relevant body)
• Evidence of income (letter of employment, income statement)
• Original Land document (project site)
• Photograph Identification  (e.g. Passport, SSB Card, Voter’s ID card)