Cuenca Expats Magazine Issue 2 | Page 13

ask the experts REAL ESTATE Q: is it possible for an expat to borrow money to buy a home in ecuador? Answer: While most expats that purchase their home do so by paying cash or using a home-equity loan from a bank in the United States it is possible, under certain circumstances, to borrow money from an Ecuadorian bank. As you can imagine, the requirements and the process are much different from obtaining a mortgage in the United States. For example, the smaller banks usually require some sort of resident visa and two years of residing in the country. A bank account and statements proving income are also usually required. Some banks have less stringent policies asking only for residency and six months of bank statements. It is important to understand, like in the United States, the economic climate ultimately determines the bank’s willingness to lend money. Most banks here in Ecuador require a 30% down payment and will finance the balance for up to 15 years. If you can borrow money in the United States, it will probably be better for you in the long run because the banks here, for the most part, charge high