| Purpose: |
To provide financing by way of Collateral Mortgages to foreign residents to build, purchase, and improve or any combination of these. |
| Types of Buildings: |
Owner occupied residential units (detached townhouse, condominium and duplex units). |
| Minimum Loan to Value: |
Will be ascertained by the location of the property being financed. The maximum lending value assigned to your property will be determined by; multiplying the lesser of the appraised value or cost by 70% (dependent on the country of origin) on the first 500,000 or up to 70% of the first $1 million to maximum of $2 million (i.e. net proceeds $350,000 or to $750,000 or $1.4 million respectively). The balance of funding available in excess of the $500,000 or $1 million or $2 million will be determined on a case by case basis. |
| Interest Rate: |
NY Prime plus (premium is based on client credit worthiness).
Libor plus (premium is based on client credit worthiness). Minimum draw is $500M.
Fixed Rate (in participating countries where the fixed rate option is available, the premium is based on client credit worthiness). Minimum draw is $500M. |
| Amortization: |
Up to 10 years and to qualifying borrower, a maximum of 15 years (on variable rate loans only early repayment allowed without notice or penalty except in Barbados where notice is required) |
| Fees: |
All related legal & government fees plus an Administration Fee ranging from 1% to 1.25% in the various countries. (Financing involving construction, additional 1% to cover site inspections). |
| Maximum Age: |
Present age of principal earner plus loan amortization not to exceed 65 years. (Some exceptions may apply). |
| Requirements: |
Current personal statement of affairs and if a company, we require audited financial
statements for the last three years from a reputable Chartered Accounting Firm.
Satisfactory bank references of minimum of 3 years (2 minimum-originals) from banks acceptable to RBC Royal Bank. Total Debt Servicing Ratio is not to exceed 40%.
In some countries approval from the respective Central Bank &/or the Foreign Investment board may be required.
Proof of Income to service the debt (i.e. Employment Letters / Income tax return for the last two years)
Standard documentation for account maintenance at RBC Royal Bank, Credit Report, Sales Agreement, and Property Appraisal. Two forms of Government Issued ID for each Applicant |
| Collateral Security: |
Registered First Charge over property. Stamped for full amount of the mortgage.
Title searched by lawyer approved by RBC Royal Bank
Property insurance coverage – all risks
Life insurance (May be Mandatory in some jurisdictions and Optional in others)
Co-signature/guarantee of spouse if applicable
In some countries Central Bank / Investment Board Approval may be required |
