Purchasing a home in Curaçao is an exciting step, but arranging the right financing can feel overwhelming. In this article, I’ll guide you through the key costs and considerations involved in buying property on the island.

The 5 Most Frequently Asked Questions About Buying a Home in Curaçao:

1. How much can I borrow?
2. What costs should I account for?
3. How much personal capital do I need to contribute?
4. How do existing debts (including student loans) affect my borrowing capacity?
5. What is a bank guarantee, and do I need one?

1. How Much Can I Borrow?

When purchasing your first home in Curaçao, understanding how much you can borrow is crucial. Most banks apply standard formulas to determine your borrowing limit, taking several factors into account:

1. Income (Yours and Your Partner’s):
Your combined income is the primary factor influencing borrowing capacity. Employment status, contract type, and – if you own a business – financial statements and forecasts are required.

2. Outstanding Debts (Including Student Loans):
Debts significantly reduce borrowing capacity. Banks assume that existing debt payments impact your ability to cover mortgage costs. It’s sometimes beneficial to consolidate debts into your mortgage. Other obligations, such as alimony, also affect the amount you can borrow.

3. Property Value:
Banks prioritize security and will not lend more than the appraised value of the property. To verify this, you must submit an official valuation report by an appraiser approved by the bank.

4. Age:
Your age plays a role in determining the mortgage term and monthly repayment amount. As retirement approaches, borrowing capacity may decrease, and loan terms may shorten, resulting in higher monthly payments.

5. Residency Status:
If you live outside Curaçao (e.g., in the Netherlands), banks typically finance a maximum of 70% of the property’s value. Residents may borrow up to 100%. As a non-resident, you must cover at least 30% of the purchase price, plus additional closing costs.

2. What Costs Should I Consider?

In addition to the purchase price, buying property in Curaçao incurs several additional costs, often referred to as buyer’s costs (k.k.). Below is a breakdown of the most common expenses:

1. Transfer Tax:
The buyer is typically responsible for paying 4% of the property value as transfer tax. Monumental buildings are exempt.

2. Appraisal:
Mortgage lenders require an appraisal to assess the value of the property. Appraisal fees average around 1.2% of the property value. Some appraisers have a fixed cost that usually starts at 700 NAF. 

3. Structural Inspection:
A building inspection is highly recommended to uncover potential defects (e.g., asbestos, foundation issues, or faulty installations). Inspections typically cost between NAF 300 and NAF 1,000, depending on the size of the home.

4. Notary Fees:
Notaries facilitate the financial transfer and property registration. Mortgage funds are disbursed to the notary, who completes the transfer and registers the property under your name. Notary fees are government-regulated in Curaçao. Fees are between 1%-2%.

5. Mortgage Advice and Brokerage:
Expert mortgage advice ensures you secure the best deal. I manage the entire mortgage process, so you can focus on preparing for your move.

6. Buyer’s Agent (Aankoopmakelaar):
If you engage a broker to assist with the purchase, expect to pay between 1% and 2% of the property’s value. These fees are often negotiable.

3. How Much Personal Capital Do I Need?

Curaçao banks typically finance up to 100% of the property’s value for residents. However, additional buyer’s costs average around 6% of the purchase price. Since banks rarely finance these expenses, you’ll need to contribute personal capital from savings, equity from a previous sale, or family loans (often referred to as “family bank” contributions).

4. How Do Debts (Including Student Loans) Affect My Mortgage?

Outstanding debts significantly impact the amount you can borrow. While student loans are not automatically registered, you are expected to disclose them when applying for a mortgage. Banks may also detect regular payments to lenders like DUO from your bank statements.

Solutions if Your Borrowing Capacity Falls Short:

• Pay Off Debts: Clearing debts increases borrowing capacity.
• Consolidate Debts: Incorporate existing loans into your mortgage.

5. What Is a Bank Guarantee and Do I Need One?

A bank guarantee reassures the seller that the transaction will proceed as planned. This typically covers 10% of the purchase price and acts as a security deposit. If financing falls through, the seller retains this amount.

Banks charge approximately 1% of the deposit as a service fee for issuing the guarantee. For example, on a home priced at NAF 300,000, a NAF 30,000 deposit would result in NAF 300 in service fees.

Feeling Overwhelmed by the Process?

As you can see, there are many factors to consider when purchasing property in Curaçao. Fortunately, our team at Sun Life Real Estate will guide you step-by-step through the entire process, ensuring a smooth and transparent experience.

Let’s simplify the journey – together.

📧 adriaan@sunlife.realty
📞 +5999 686 2994

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