How Much Can You Borrow for a Mortgage in Aruba? [2025 Guide]
How banks calculate borrowing power in Aruba, with a clear example, calculator links, and tips.
1) Factors That Determine How Much You Can Borrow
Aruban lenders consider age, income, down payment, existing obligations, and property type/value.
- Age at end of term — maximum age often 65–70 at maturity.
- Salary and income — payslips; self-employed provide financials/tax returns.
- Down payment — residents ~10–25%; non-residents ~35–40%.
- Existing obligations — loans, cards, other monthly debts.
- Property type and value — LTV caps typically 65–90%.
2) Example Calculation of Borrowing Power
Resident example: salary USD 3,500 monthly; target purchase USD 400,000.
- Down payment: 10% = USD 40,000
- Loan amount: USD 360,000
- Monthly payment (6%, 25-year annuity): ≈ USD 2,315
Non-resident example (35% down payment):
- Down payment: USD 140,000
- Loan amount: USD 260,000
- Monthly payment: ≈ USD 1,678
Exact figures depend on bank policies, rate, term, and your profile.
3) Use a Mortgage Calculator
Use an online mortgage calculator to estimate your maximum loan and monthly payment. Enter your income, interest rate, term, and down payment to see how each factor changes your borrowing power. If you do not have a preferred calculator, search for “mortgage calculator” and choose a reputable tool that supports annuity payments.
4) Tips to Increase Your Borrowing Capacity
- Reduce existing debts before applying.
- Increase your down payment to lower bank risk.
- Consider a longer term to reduce monthly payments.
- Non-residents can apply with major banks while living abroad.
5) Frequently Asked Questions (FAQ)
Can non-residents get a mortgage in Aruba?
Yes. Banco di Caribe and RBC Royal Bank offer non-resident options, often with 35–40% down payment.
How do banks determine my maximum?
Based on income, age, obligations, down payment, and property type/value.
Maximum loan vs monthly payment?
A maximum is a cap; monthly payments must still be affordable and within bank ratios.
Can I increase the mortgage later?
Refinancing or additional loans may be possible depending on the bank and your profile.