If your pre-approval limit is still valid (i.e., if it was issued within the last six months), you will need to provide BCB with:

• A signed Sale and Purchase Agreement outlining the terms of the property purchase
• A letter from your employer(s) confirming your start date, role, and current compensation (required for each applicant)
• Your most recent bank statements to verify financial stability
• Credit card statements for the past three months
• Bank statements confirming your ability to cover the down payment and closing costs

If your pre-approval limit has expired, you will also need to submit your payroll statements for the past three months so we can complete an updated assessment.

If you have entered into a contract to purchase a property but don’t have a pre-approval from BCB, you will need to provide us with:

• A completed mortgage application
• A signed Sale and Purchase Agreement outlining the terms of the property purchase
• A letter from your employer(s) confirming your start date, role, and current compensation (required for each applicant)
• Payroll statements for the past three months
• Bank statements for the past three months
• Credit card statements for the past three months
• Investment or savings account statements to confirm your ability to cover the down payment and closing costs

Once we receive your application, our lending specialists will guide you through the approval process and work with you to ensure a smooth and timely closing.

Once we receive all the required documents, we aim to provide a formal mortgage approval within 7 to 10 business days. If you already have a pre-approved limit, the process may be even faster.

To avoid delays, we recommend submitting all necessary documents as soon as possible. Our lending specialists are here to guide you through each step to ensure a smooth, efficient approval process.

Yes, a property appraisal is required as part of the mortgage approval process. BCB will arrange an appraisal to determine the current market value of the property and ensure it meets our lending criteria.

The appraisal helps establish the loan-to-value (LTV) ratio, which must be within the limits that BCB has set. A loan-to-value ratio represents the amount of the mortgage as a percentage of the value of the property. So, for instance, a 75% LTV means that the mortgage is equal to 75% of the property’s value. A lower LTV usually means that the homebuyer has provided a higher down payment and therefore needs a lower mortgage amount.

Our team works with experienced appraisers in Bermuda to ensure a reliable and accurate valuation.

The cost of a property appraisal depends on the size and complexity of the property. For smaller properties, fees typically start at $750, while for larger or more complex properties, the cost may exceed $1,200. The final amount is determined by the appraiser; BCB does not charge any additional fees for arranging the appraisal.

Our team works with a network of experienced professionals in Bermuda to ensure a smooth and efficient process. We communicate directly with the appraiser to request a quote on your behalf and will share the quote with you for review. Once you agree to the quote and submit payment to BCB, we will formally engage the appraiser to conduct the valuation.

After the appraisal is completed and we deem it acceptable, we will arrange payment to the appraiser. If you have any questions, our lending specialists are here to assist.

When you take out a new mortgage, you’ll be responsible for paying several fees and costs, including:

• The bank fee which is typically 1% of the loan amount, but is reduced to 0.75% under the Bermuda Government Mortgage Guarantee Programme.
• The appraisal fee required to determine the property’s value. It ranges from $750 to more than $1,200, depending on the size of the property.
• A credit reference fee totalling $90< ($30 per bank) for each loan applicant for references from HSBC Bermuda, Butterfield Bank, and Clarien Bank.
• Legal fees which will vary based on the mortgage amount and the law firm used. We recommend you confirm the exact cost with your lawyer at the outset.
• Property insurance premiums which will also vary depending on the size of the property.

Yes, the purchase price of the property can have an impact on your mortgage approval. We use either the purchase price or the appraised value – whichever is lower – to calculate the loan-to-value (LTV) ratio. The loan-to-value ratio represents the amount of the mortgage as a percentage of the value of the property. So, for instance, a 75% LTV means that the mortgage is equal to 75% of the property’s value. A lower LTV usually means that the homebuyer has provided a higher down payment and therefore needs a lower mortgage amount.

If the appraised value is lower than the agreed purchase price, you may need to provide a larger down payment to cover the difference. This ensures that the loan remains within BCB’s lending criteria.

Our lending specialists can help you understand how the appraisal may affect your financing and discuss your options if additional funds are required.

Currently, BCB offers variable-rate mortgages. These rates are based on the bank’s lending base rate plus a spread; this means your interest rate may fluctuate if there are changes to the base rate.

The standard variable rate is currently 6.25%, but BCB may offer a lower rate after a detailed review of your financial profile, including factors such as your creditworthiness, loan amount, loan-to-value (LTV) ratio, and overall banking relationship.

If you have questions about how our mortgage rates work or would like to explore rate options tailored to your situation, our lending specialists are available to assist.

Your mortgage approval is based on several key factors:

• Income: We will assess your income to determine the monthly mortgage payments you could comfortably manage.
• Fixed expenses: We will consider your fixed monthly expenses, such as:
  • Proposed mortgage payments
  • Estimated land tax and property insurance for the property you may purchase
  • A percentage of your available credit card limit
  • Any other existing loans or debts
  • Private school fees and university fees (if applicable)
• Local bank credit checks: We will perform local credit checks, which may include reviewing your existing bank relationship and any outstanding debts with other financial institutions. These checks help us understand your credit history.
• Down payment and closing costs: The amount of your down payment will affect the size of the mortgage you will need. When determining your pre-approved loan amount, we will take into account how much you can contribute as a down payment. We will also consider the costs associated with purchasing a property, including:
  • Bank fees
  • Appraisal costs
  • Legal fees
  • Stamp duty (if applicable)

Mortgage Calculator

Once we receive all the required documents, we aim to provide a formal mortgage approval within 7 to 10 business days. If you already have a pre-approved limit, the process may be even faster.

To avoid delays, we recommend submitting all necessary documents as soon as possible. Our lending specialists are here to guide you through each step to ensure a smooth, efficient approval process.

Yes, you can purchase a property through a trust, but there are several important considerations that must be taken into account, including the structure of the trust, trustee requirements, loan eligibility, and legal compliance. Additional documentation may be required, and the approval process may vary depending on the specifics of the trust.

If you are interested in purchasing a property through a trust, we encourage you to reach out to us at lending@bcb.bm to discuss your options and requirements in detail. Our lending specialists are here to assist you through the process.

As a business owner, you can qualify for a mortgage, but we must consider a number of additional factors. For instance, BCB will assess your business’s financial stability, income consistency, and ability to meet loan obligations. Additional documentation, such as business financial statements, tax returns, and proof of steady income, may be required.

If you are self-employed and interested in applying for a mortgage, we encourage you to reach out to us at lending@bcb.bm to discuss your specific situation. Our lending specialists are here to guide you through the process and help you understand the requirements.

Yes, we offer financing for home improvements and renovations. The required documentation depends on the size and scope of the project.

• For smaller projects, you may need to provide invoices or quotes from contractors.
• For larger renovations, we may require a detailed construction contract, project budget, and timeline. In some cases, validation from a project manager or quantity surveyor may be necessary to ensure proper oversight.

If you are considering a renovation project and need financing, reach out to us at lending@bcb.bm to discuss your options. Our lending specialists are here to guide you through the process.

The Government of Bermuda has changed the law so that eligible individuals can use a portion of their pension funds for the down payment on a property. While this might assist with upfront costs, please note these requirements and considerations:

• You must be eligible under the pension withdrawal guidelines.
• You must still meet BCB’s affordability criteria, demonstrating that you can comfortably manage your mortgage payments.
• You will need to have additional funds to cover closing expenses, such as legal fees, stamp duty, and appraisal costs.
• It’s essential to maintain sufficient financial reserves for unforeseen expenses related to homeownership.

If you are considering using your pension funds for a down payment, we encourage you to reach out to us at lending@bcb.bm to discuss your eligibility and financing options.

A pre-approval limit is determined before you’ve finalized a property purchase and is the maximum amount a lender is willing to lend you based on your financial situation. Obtaining a pre-approval limit helps you understand how much you can borrow and makes your home search more focused and manageable.

Your pre-approval limit is based on several key factors:

• Income: We will assess your income to determine the monthly mortgage payments you could comfortably manage.
• Fixed expenses: We will consider your fixed monthly expenses, such as:
  • Proposed mortgage payments
  • Estimated land tax and property insurance for the property you may purchase
  • A percentage of your available credit card limit
  • Any other existing loans or debts
  • Private school fees and university fees (if applicable)
• Local bank credit checks: We will perform local credit checks, which may include reviewing your existing bank relationships and any outstanding debts with other financial institutions. These checks help us understand your credit history.
• Down payment and closing costs: The amount of your down payment will affect the size of the mortgage you will need. When determining your pre-approved loan amount, we will take into account how much you can contribute as a down payment. We will also consider the costs associated with purchasing a property, including:
  • Bank fees
  • Appraisal costs
  • Legal fees
  • Stamp duty (if applicable)

The amount you can borrow for a mortgage depends on several factors, including your income, expenses, credit history, and the property you’re interested in purchasing. To get a personalized estimate of how much you could borrow, we recommend using our Affordability Calculator.

This tool takes your financial details into account to give you an estimate based on your specific situation. It’s a great first step in determining what fits your budget before you apply for a pre-approval limit.

Several factors help us assess how much you can afford to borrow while ensuring you can comfortably repay the loan. Key considerations that affect your pre-approval limit include:

• Income level: We look at your salary, bonuses, commissions, overtime, rental income, and any other recurring earnings. You should have a stable and reliable income stream, and generally, the more you earn, the more you will be able to borrow.
• Fixed expenses: Monthly financial commitments such as loan payments, credit card debt, child support, and education costs (if applicable) reduce the amount of money you have available for mortgage repayments and will therefore reduce the amount you’ll be able to borrow. On the other hand, the lower your existing obligations, the more you may be able to borrow.
• Savings for down payment and closing costs: Having sufficient savings to cover your down payment and closing costs is essential.
• Your age and term of the loan: Most lenders require that your mortgage be fully repaid by age 65. If you are close to this age, you may need a shorter loan term, which may mean higher monthly payments. Younger borrowers often qualify for longer loan terms, making payments more manageable.

By understanding these factors, you can better prepare for the mortgage application process and increase your chances of securing the right loan for your needs.

No.

Your pre-approval limit reflects the maximum loan you qualify for, but that amount will not cover the full cost of your home. You will need additional, separate funds for costs such as:

1. Down payment: You’ll need to make a down payment, which is a percentage of the home’s total purchase price.
2. Property taxes: The annual taxes payable will vary based on the property’s value and location.
3. Home insurance: As one of the loan conditions, you’ll have to ensure your home is adequately insured.
4. Closing costs: Fees for legal services, Bermuda Government stamp duty (if applicable), and other transaction costs are all additional expenses.

Your pre-approval is valid for 6 months. If you haven’t found a property and signed a Sale and Purchase Agreement within this time, you can apply for a new pre-approval. This will require confirming that your financial situation—such as your income, expenses, and credit profile—remains acceptable.

Yes! You can get pre-approved before finding a property, and it’s a great first step in your homebuying journey. Pre-approval gives you a clear idea of your budget, shows sellers you’re a serious buyer, and helps streamline the mortgage process once you find the right home.

To apply for a pre-approval, you’ll need to provide:

• A completed loan application
• A copy of your passport (this will be scanned into the loan application)
• A copy of a utility bill to confirm your current address
• Payroll statements covering the most recent three months
• Bank statements for the past three months, showing your payroll deposits as noted in your payroll statements

The Bermuda Government Mortgage Guarantee Programme is a collaborative initiative between the Bermuda Government and Bermuda Commercial Bank aimed at making homeownership more accessible for Bermudians. The programme provides a government guarantee which results in homebuyers being able to take advantage of reduced interest rates and lower down payment requirements.

Key features

• Reduced interest rates: Qualified borrowers can benefit from interest rates starting at a variable rate of 5%, lowering monthly mortgage payments.
• Lower down payments: The programme reduces the standard down payment requirement from 20% to 10%, making it easier to purchase a home.

Eligibility criteria

• First-time homebuyers: Bermudians and spouses of Bermudians purchasing their first home are eligible.
• Public officers: Government employees can transfer existing mortgages from other banks to BCB under this programme.
• Emergency workers: Police officers, firefighters, and prison officers are also eligible. Note that, for purposes of the programme, retirement age for these individuals is considered to be 65.

Loan details

• Maximum loan amount: Up to BMD $900,000, excluding fees
• Loan term: Up to 30 years
• Guarantee duration: A minimum of five years, up to a maximum of ten years

For more information, visit the Bermuda Commercial Bank’s Bermuda Government Mortgage Guarantee Programme page.

The standard down payment requirement is 20% of the property’s purchase price. However, under the Bermuda Government Mortgage Guarantee Programme, qualified borrowers may be eligible for a reduced down payment of as little as 10%. 

When you take out a new mortgage, you will be responsible for paying a number of fees and costs, including:

• The bank fee which is typically 1% of the loan amount, but is reduced to 0.75% under the Bermuda Government Mortgage Guarantee Programme.
• The appraisal fee required to determine the property’s value. It ranges from $750 to more than $1,200, depending on the size of the property.
• A credit reference fee totalling $90 ($30 per bank) for each loan applicant for references from HSBC Bermuda, Butterfield Bank, and Clarien Bank.
• Legal fees which will vary based on the mortgage amount and the law firm used. We recommend you confirm the exact cost with your lawyer at the outset.
• Property insurance premiums which will also vary depending on the size of the property.

Once we receive all the required information, we aim to provide a formal pre-approval decision within three business days.

Pre-approvals are only available for personal retail mortgages. Properties held in a trust involve additional complexities and require a more detailed review. To explore your options, please email lending@bcb.bm to arrange an appointment with one of our lending specialists.

Refinancing is the process of replacing your existing loan with a new one, typically to secure better terms, such as a lower interest rate, reduced monthly payments, or a different loan structure.

If you’re considering moving your mortgage from another bank to BCB, this is the process:

• Loan application: The first step is to fill out a loan application and provide a few key documents, including payroll statements, bank statements, and mortgage statements. This helps us assess your financial position and determine if you qualify.
• Loan Assessment and approval: Our team will analyse your application, review your credit profile, and evaluate your ability to repay the loan. If you meet our lending criteria, we will approve your refinancing request and provide details on your new mortgage terms.
• Loan documentation preparation: Once it’s approved, we will prepare the loan agreement outlining the terms of your new mortgage. You’ll need to review and sign these documents to proceed.
• Notifying your current bank: After signing the new loan documents, you will need to notify your current lender about your intention to refinance. Most banks require 90 days’ notice before allowing you to switch lenders. This step is essential to ensure a smooth transition.
• Disbursement and mortgage transfer: At the end of the 90-day notice period, we will release the funds required to pay off your existing mortgage. This officially transfers your mortgage from your current bank to BCB, and you’ll begin making payments under your new loan terms.

Refinancing your mortgage can provide significant financial benefits, especially if your current loan terms are about to change, such as an increase in the interest rate. A few key reasons to consider switching to BCB include:

• Avoiding a costly interest rate increase: If your fixed-rate mortgage is set to convert to a variable rate at a much higher interest rate, refinancing can help you secure a lower, more stable rate, protecting you from rising payments.
• Saving on interest and securing better terms: Refinancing may allow you to obtain a lower interest rate, reducing your overall interest costs. You can also extend your loan term to lower your monthly payments and improve cash flow.
• Eliminating surprise balloon payments: Your current mortgage may require a large lump-sum payment at maturity – also known as a balloon or bullet payment – and you may not even be aware of it. When you refinance with BCB, you can restructure your loan to avoid this type of payment, ensuring your mortgage costs remain predictable and manageable.
• Paying minimal upfront costs: In most cases, the cost of refinancing can be rolled into your new loan, so you won’t need to pay anything out of pocket upfront.
• Saving on bank fees: As part of our refinancing campaign, for a limited time we are waiving all bank fees for qualified borrowers, saving you up to 1% of your mortgage balance. This makes switching to BCB even more cost-effective.

Refinancing a mortgage typically involves several additional costs. However, during our refinancing campaign, we are waiving all bank fees for qualified borrowers — a savings of up to 1% of your mortgage balance. Other potential costs include:

• Appraisal fees – A property appraisal may be required to determine the current market value of your home.
• Legal fees – The services of a lawyer are needed to prepare and register your new mortgage.
• Credit check fees – A credit report may be required as part of the underwriting process.
• Stamp duty – Stamp duty is normally required for mortgage transfers; however, it is waived for loans under $1 million, making refinancing even more affordable.

In most cases, the cost of refinancing can be rolled into your new loan, so you won’t need to pay anything out of pocket upfront.

Yes, if you have sufficient equity in your property, the costs associated with the refinancing can be added to your new mortgage. As a result, you’ll be able to complete the refinancing process with little or no upfront costs.

Typical refinancing costs that can be added to your loan amount include:

• Legal fees required for preparing and registering the new mortgage
• Appraisal fees incurred if a property valuation is needed
• Credit check fees associated with obtaining a new credit report (if required)
• Stamp duty, though this is normally waived for loans under $1 million, reducing your overall costs (please confirm with your lawyer)

Note that as part of our current refinancing campaign, for a limited time we are waiving all bank fees for qualified borrowers — a savings of up to 1% of your mortgage balance.

By rolling refinancing costs into your mortgage, you can switch lenders without a large upfront expense while still benefiting from lower interest rates, better terms, and potential long-term savings.

Yes, we will consider increasing your mortgage to help fund home renovations. This will depend on two key factors:

• The equity available in your property: The amount you can borrow is based on the equity available in your property, calculated as your home’s current market value minus the remaining balance on your mortgage. If you have sufficient equity, we may be able to increase your loan amount.
• Your ability to afford the additional loan amount: We will also assess your financial situation to ensure you can comfortably afford the increased mortgage payments while completing your renovations.

To refinance your mortgage with BCB, you’ll need to provide the following documents:

• Completed loan application: The first step in the refinancing process 
• Employment letter: A letter from your employer confirming your start date, current position, and compensation (for each applicant)
• Payroll statements: Your last three months of payroll statements to verify your income and ability to repay the loan
• Bank account statements: Your last three months of bank statements to assess your financial standing
• Credit card statements: Your last three months of credit card statements to evaluate your current liabilities and credit history.
• Mortgage statements: Recent statements from your current lender showing your remaining balance, interest rate, and repayment history.

Yes, a property appraisal is required for refinancing. We work with a network of experienced appraisers in Bermuda to ensure a reliable and accurate valuation. We will arrange the appraisal on your behalf to determine the current market value of your property and confirm that the loan-to-value (LTV) ratio does not exceed 80%. A loan-to-value ratio represents the amount of the mortgage as a percentage of the value of the property. So, for instance, an 80% LTV means that the mortgage is equal to 80% of the property’s value.

If there is sufficient equity in your property, the cost of the appraisal and other closing expenses may be added to your total refinancing amount.

Yes, you may still be eligible to refinance your mortgage even if you have other loans or lines of credit. As part of the refinancing process, we will assess your overall financial situation, including your total debt obligations and ability to repay those debts.

If your debt-to-income ratio meets our lending criteria and your loan-to-value (LTV) ratio remains within acceptable limits, we may be able to proceed with the refinancing. A loan-to-value ratio represents the amount of the mortgage as a percentage of the value of the property. So, for instance, a 75% LTV means that the mortgage is equal to 75% of the property’s value.

In some cases, consolidating other debts into your mortgage may be an option if there is sufficient equity in your property.

Refinancing your mortgage typically takes 90 to 120 days from application to completion. This process includes reviewing your application, obtaining necessary approvals, and drafting loan documents. Additionally, most lenders require a 90-day notice period before you can pay off your existing mortgage, which may affect the overall timeline.

We recommend starting the process as early as possible to ensure a smooth transition.

Yes, you may be able to refinance while still under contract with your current lender. However, it is typical for lenders in Bermuda to require a 90-day notice period before you can pay off your existing mortgage. We recommend reviewing your loan agreement to confirm any notice requirements or potential fees for early repayment.

Most lenders require a 90-day notice period before you can repay your mortgage. If proper notice is given, additional fees or penalties are usually not applied. However, because terms can vary, we recommend reviewing your existing mortgage agreement to confirm any early repayment conditions.

Refinancing can be a great option if it helps you lower your interest rate, reduce your monthly payments, access home equity, consolidate debt, or avoid a balloon repayment at maturity. However, it’s important to also consider factors such as closing costs, loan terms, and any penalties for early repayment with your current lender.

To help determine if refinancing is the right choice for you, use our Refinancing Calculator to compare potential savings and costs. To determine if refinancing is right for you,  email us at lending@bcb.bm to arrange an appointment with one of our lending specialists.