The Ministry of Transport and Housing is a government Ministry with responsibility for The Bahamas Mortgage Corporation. The Ministry develops housing projects for sale to Bahamian citizens and residents. The Bahamas Mortgage Corporation provides primary funding for these government-initiated homes.
Commercial Banks are regulated by the Central Bank of The Bahamas to carry out banking-related activity (e.g. cash, foreign exchange, deposit and credit transactions). The Bahamas Mortgage Corporation is regulated by the Compliance Commission and only provides mortgage lending facilities to citizens and eligible residents of The Bahamas for their residential occupancy.
BMC provides residential mortgages in Bahamian Dollars for vacant property purchases, purchase of single-family dwelling units, multi-family dwellings (duplex, triplex, fourplex), condominium purchases and home renovations. In all cases the mortgagor must occupy the premises that are mortgaged to BMC.
Bahamian Citizens and Permanent Residents are eligible to borrow from the BMC. Permanent Residents require approval under the International Persons Landholding Act (Chapter 140).
The Corporation accepts the following relationships in consideration of a mortgage:
We do not operate a switch mortgage program. We can however assist with the payout of a mortgage/loan for vacant property if the BMC will be providing financing for construction of your home.
We provide financing to all islands located within The Bahamas.
We have in the past, but it is not the main purpose of the BMC. There have been occasions where the BMC purchased properties and constructed homes but that is the exception and not the normal course of operations.
No, we would provide financing for any of the above-mentioned mortgages for government and private initiated purchases/projects.
Interest rates are based on perceived credit risk and the category of purchase. If the mortgage is booked under the tenants of the Housing Act (i.e. insured mortgages), the maximum interest rate is prime +2% for single-family and prime + 3% for multi-family dwellings.
Private mortgages (i.e. non-government insured) generally attract a higher rate of interest commensurate with the customer’s risk profile.
Government insured mortgages max out at $237,500; this represents 95% of a full sales price of $250,000 less the mortgagor’s down payment of 5%.
Private mortgages generally max out at $300,000. There is some flexibility to increase this amount given the credit profile of the mortgagor and the overall risk appetite of the Corporation.
Vacant land repayment should not exceed 15 years. Home construction and/or purchases are amortized over a 30-year maximum period or to age 65 of the mortgagor, whichever is longer.
Generally, the following are required for the application process:
The Corporation does not currently have this capability. Applications are only completed in person.
The Corporation does not ordinarily pre-qualify borrowers for a mortgage. We are able to provide you with a credit assessment which would determine the maximum amount you would qualify to borrow. The information obtained is not always verified by the Corporation and is only for the borrower’s purchase budgeting information.
This number is subject to change once a complete application is taken and information independently verified.
Yes. We finance up to fourplex multi-family dwellings. In all instances, the mortgagor must reside in the property mortgaged to the BMC (i.e., owner occupation).
Yes. The Corporation does provide financing for customers wishing to purchase properties/houses from its foreclosed listing. All customers must meet the normal lending requirements; no concessions or special privileges are provided to these customers in the lending process.
Closing costs can be financed once the customer has financial capacity and is able to meet the 5% down payment requirement.
The applicant is responsible for loan administrative fees, appraisal fees, survey fees, individual life insurance, and legal and stamping fees (if not financed in the mortgage).
The minimum down payment is 5% of the sales price.
The Corporation only accepts life insurance policy assignments directly from registered insurance providers at this time.
Once all information required for the application has been provided, a response could be expected within 10-14 business days. The review process includes independent verification of information in the application and supporting documentation, and a Building Technical Assessment by our in-house team
The Corporation does not have a listing of authorized contractors. Customers may choose their own contractor as long certain information is provided – a valid Government Contractor Builder’s License (Ministry of Finance), construction references, and tax compliance documents.
The cost of construction is provided in the contractor’s quote. Once this quote is assessed by our Technical Team, the amount is generally paid in stages. The customer certifies completion of each stage and authorizes the BMC to make payment to the contractor in accordance with the contract. Our Technical Team confirms this completion with an inspection before payment is approved and disbursed.
Yes. A further charge is available once the repairs do not exceed the new appraised value of the home.
Salary deduction is preferred but if unavailable there are other payment methods, e.g., cash payment at our office, automatic bank transfers, etc.
Contact us and advise of your difficulty ([email protected] or 502-1050). Each customer’s situation is unique so our team will work with you to tailor the best solution for you. It is important that you honor the terms of any revised payment plan.
The most important factor to consider when bidding is the Appraisal Value listed on the bid. The Corporation has a duty of care to the mortgagor and is expected to get the best price for the property/dwelling. You should also have the required deposit available once immediately after being announced as the successful bidder.
Once the deadline for acceptance of bids have been passed, all bids are compiled and reviewed by a committee. The main factor in determining the winner is the bid price. The Corporation reserves the right to decline a/all bids offered in respect of a foreclosed property.
Credit/Debit Card Payment at a Cashier in our office, Salary Deduction, Online/Wire Banking Transfer to one of our accounts:
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An email should be sent to [email protected] with a copy of your payment to ensure accurate and prompt posting of your payment to your mortgage account.
No, The BMC is not set up as a bill payee with commercial banks at this time.