Question 1

How does this affordability calculator work?

Accepted Answer

It works backward from what you have. Enter the cash you can put toward a purchase and the monthly mortgage payment you're comfortable with, and it finds the highest property price those two limits allow — then tells you which one is holding you back. It deliberately does not use a US-style debt-to-income ratio, because Dominican banks lend foreign buyers on loan-to-value and payment terms, not on income multiples.

Question 2

What down payment do DR banks require from foreign buyers?

Accepted Answer

For foreign buyers in the Samaná Peninsula, most banks require 30–50% down (a 50–70% loan-to-value cap). DR residents can sometimes finance with 20–30% down. A larger down payment shrinks the loan, so if your monthly budget is the binding limit, putting more cash down lets you reach a higher purchase price.

Question 3

What interest rates and terms are realistic?

Accepted Answer

Foreign-buyer mortgages in the DR typically run 10–14% APR in either USD or DOP, with terms up to 20–25 years (though many banks will not finance beyond the buyer's 65th–70th birthday). Rates are much higher than in most home markets, which is why many foreign buyers pay cash or finance at home instead.

Question 4

How does CONFOTUR change what I can afford?

Accepted Answer

CONFOTUR-certified tourism properties waive the 3% transfer tax, cutting closing costs from roughly 5% of the price to about 1.5%. Since closing costs come out of the same cash as your down payment, a CONFOTUR property frees up cash — which raises your ceiling when your cash (not your monthly budget) is the binding limit.

Question 5

Should I include ongoing costs in my monthly budget?

Accepted Answer

This tool treats your monthly payment budget as the mortgage principal-and-interest only, and shows ongoing costs (IPI property tax, insurance, HOA, maintenance) separately as an estimated monthly figure. Budget for those on top of the mortgage — a common rule of thumb in Samaná is roughly 2–3% of the property value per year in carrying costs.

Question 6

Is paying cash better than financing?

Accepted Answer

Many foreign buyers pay cash to avoid DR interest rates and to negotiate a 10–20% discount. Financing stretches the same cash into a higher-priced property, at the cost of a monthly payment at 10–14%. Toggle "Paying cash" versus "Financing" to compare the maximum price each path reaches with the same cash.

What can you actually buy?

What's holding you back.

What your budget buys.

Download your affordability summary as a PDF.

Frequently asked questions