Bermuda Mortgage Rates and Financing for Non-Bermudians

Non-Bermudians cannot buy any property they like. The law restricts them to certain categories, generally homes above a value threshold, and a licence from the government is typically needed. Applications take time and your attorney files them with the offer. Lenders will not fund a purchase that has no licence behind it.

Because supply open to non-Bermudians is limited, start with a lawyer, not a bank. Our Bermuda consultation guide outlines the buying rules, and the Bermuda property page is the place to follow the market.

Banks on the island are used to international clients, especially those in the insurance and reinsurance sectors, and they assess each application in depth. A 50-70% loan is the range to expect, over up to 20 or 25 years, with a larger cash contribution than you would face in the United States. Pricing is generally higher than in North America, partly because the market is small and partly because there is little competition.

The Bermuda dollar is fixed to the US dollar one for one, so dollar earners are spared exchange risk. Ask whether the rate is fixed for a time and then reviewed, and what penalty applies if you repay early.

Licence applications, valuations and attorney work do not run in a straight line. A sensible plan allows several months from accepted offer to completion, and keeps your deposit in a form that can be moved without fees. Do not give notice on a rental or sell another property until the licence is granted, because the one thing that can derail a Bermuda purchase is a delay on the government side that you cannot control. Have a back-up plan for where you will live and how you will fund the transaction if the dates slip.

Finally, keep copies of everything. Banks on the island expect a well-organised file and will often ask for the same document more than once.

Bermuda has very little land, and the valuer's task is to compare a small number of sales. A bank's valuation can come in below the agreed price, leaving you to find the shortfall in cash. Order the valuation early, before you are committed to a completion date.

Stamp duty on transfers is tiered by value and can reach several percent on higher-priced homes. Land tax is levied annually on rental value. Add the licence fee, your attorney and the lender's charges.

The right to buy a house is not the right to live or work on the island. Immigration and work permission follow separate rules, and the bank will want to know your plans. If you intend to relocate, discuss timing with an immigration adviser alongside the purchase.

Many high-value purchases are paid in cash. Others use a credit line from a private bank secured on an investment portfolio, which can be quicker and cheaper than a local mortgage. Borrowing against property in your home country is another route, with the usual risk to that home. Check windstorm cover too, since storm exposure matters for both insurers and lenders. If you are comparing destinations, our financing hub lists other countries, and the contact page can help you find advisers.