🕊️ Financial PlanningBuying a home in The Bahamas: mortgages, the Mortgage Corporation and help
The Bahamas has no National Housing Trust or payroll housing contribution — nothing is deducted from your pay for housing. Home finance runs through commercial banks and credit unions, plus the government-owned Bahamas Mortgage Corporation, which lends to lower- and middle-income buyers on easier terms, and the Department of Housing, which develops subdivisions and sells serviced lots and homes. This guide covers how they fit together and what a first-time buyer should line up.
Banks, credit unions and the Mortgage Corporation
For most buyers the mortgage comes from a commercial bank or a credit union. Rates are quoted over the bank's Bahamian dollar prime rate, terms run to 25–30 years, and lenders usually want 5–15% down plus closing costs. Credit unions can be competitive and assess you more personally.
The Bahamas Mortgage Corporation is government-owned and lends to buyers below an income limit, often with a lower deposit and rate than a commercial bank, for homes within a price cap — frequently on Department of Housing developments. Get a quote there as well as from a bank if your income qualifies.
The Department of Housing and buying costs
The Department of Housing develops subdivisions across the islands and sells serviced lots and completed homes to applicants on its register, with government financing options. You apply and wait — allocation is not on a fixed timetable.
On a purchase, VAT applies to the conveyance on a sliding scale (it replaced the old stamp duty on real estate), often shared between buyer and seller, and there is a relief for first-time Bahamian buyers below a value cap. Budget also for legal fees (around 2.5% plus VAT), a bank appraisal, and recording fees. Owners then pay annual real property tax, with an exemption for owner-occupied homes below a threshold.
What a first-time buyer should line up
Get a pre-qualification from a bank and, if your income qualifies, from the Bahamas Mortgage Corporation, before you shop. Keep your deposit in a plain savings account, not investments that can fall in value close to when you need the money.
Do not commit to a monthly payment that leaves no room for insurance (hurricane cover is essential and not cheap), real property tax, maintenance and your emergency fund. Use our home financing calculator to compare the monthly payment and total cost across different rates and terms.
Frequently Asked Questions
- Is anything deducted from my pay for housing in The Bahamas?
- No. There is no National Housing Trust and no payroll housing contribution. Home finance is through banks, credit unions and the government-owned Bahamas Mortgage Corporation.
- What is the Bahamas Mortgage Corporation?
- A government-owned lender that provides mortgages to lower- and middle-income buyers below an income limit, for homes within a price cap, often with a lower deposit and rate than a commercial bank — frequently on Department of Housing developments.
- What does it cost to buy a home besides the price?
- VAT on the conveyance (a sliding scale, often shared with the seller, with first-time-buyer relief below a value cap), legal fees of around 2.5% plus VAT, a bank appraisal and recording fees, plus hurricane insurance and, afterwards, annual real property tax.
Informational content, not financial, tax or legal advice. Check amounts, limits and current rules directly with the official sources (the National Insurance Board, the Central Bank of The Bahamas, Tax Administration The Bahamas, the Deposit Insurance Corporation) before making a decision.
