Things to Consider When Applying for a Mortgage

No matter what institution you finally decide to use, there are some basic things to consider and documents required before you take that first step through a lending institution's front door.

Using a Mortgage “Budget Planner” can assist you to determine the amount you can comfortably afford to borrow towards your purchase of property.  Some of the items for consideration are:


Your monthly salary/wages (after tax):

Your spouse/partner's monthly salary/wages (after tax):

Other monthly income (rent from other property etc.):


Rent/Mortgage repayments:

Property Taxes (pro-rated monthly):

Utility Bills (electricity, water, telephone, etc.):

Car Maintenance Expenses (gas, tune up, etc.):

Car Insurance/Car Licence Fees/Vehicle Taxes (pro-rated monthly):

Life Insurance/Pension/Endowment payments:

Property & Contents Insurance payments:

Food Bill:

Clothing Expenses:

Education (School Fees, Books, etc.):

Medical/Dental (Visits & Prescriptions):

Entertainment Expenses:

Membership Fees/Subscriptions:

Other expenses (Holidays, gifts, etc.):

Monthly repayments on existing loans:

Monthly Hire Purchase/Credit Card Repayments:


Total Income:

Total Expenses:

Monthly Disposable Income:

(Total Income – Total Expenses = Monthly Disposable Income)

When applying for a mortgage, it will certainly save time if you have the following documents available, where applicable:

  1. National Identity Card or passport, for identification.
  2. Telephone, water or electricity bill to confirm your residential address.
  3. A letter from your employer verifying employment (to include length of employment) and your most recent salary slip.
  4. Copies of recent bank statements (up to 6 months) or a bank reference letter from your banker if you are a new customer.
  5. An agreement for sale (if you are buying a property, this would be a letter from the person selling the property).
  6. A construction estimate if you plan to build, as well as approved construction plans.  The estimate should show a breakdown of the stages of the construction and the costs of each stage.
  7. An appraisal of the property.  This will be needed whether you are buying or building a home, but check with your financial institution to determine whether this is needed before or after you are approved for financing.

With over 36 years experience in the Barbados Real Estate industry, Ron Karp Realty Ltd. has an intimate knowledge of the Barbados property market.  Contact us today and let our experience and local knowledge work for you.

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