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What Is the Minimum Down Payment for a Mortgage in the Dominican Republic?

Down payment requirements by applicant type, property type, and bank — and how to optimize yours

March 2026 · 7 min read

The down payment is typically the biggest cash outlay in a Dominican Republic property purchase. Understanding exactly how much you need — and why it varies — helps you plan your purchase timeline and choose between banks intelligently.

This article covers the standard requirements for foreign buyers, how property type and loan-to-value (LTV) ratios work, and strategies for buyers who want to minimize their upfront cash.

Standard Down Payment Requirements

Down payment requirements in the DR are expressed as a percentage of the appraised property value (not the purchase price — an important distinction).

Applicant TypeMin. Down PaymentMax LTV
Dominican national (salaried)10–20%80–90%
Dominican national (self-employed)20–30%70–80%
Resident foreigner20–30%70–80%
Non-resident foreigner30–40%60–70%

These are typical ranges across major banks for a primary residence. For non-primary residences (investment properties, vacation homes, or second homes), banks typically cap financing at 70% LTV regardless of applicant type — this is standard market practice across the DR mortgage sector, driven by risk-weighting guidelines under the Reglamento de Evaluación de Activos. Individual bank policies vary. Running a multi-bank simulation shows you the full range of what's available.

LTV vs. Down Payment: Understanding the Math

Example calculation

Purchase price$200,000
Appraised value$180,000
Bank allows 70% LTV for non-resident
Maximum loan$180,000 × 70% = $126,000
Cash needed$200,000 − $126,000 = $74,000

In this example, you need $74,000 in cash even though the 'down payment' sounds like it should be 30% of $200,000 ($60,000). The appraisal gap creates an additional $14,000 requirement.

Don't Forget Closing Costs

Budget an additional 4–6% of the property value for:

  • Transfer tax (Impuesto a la Transferencia): 3% of higher of purchase price or appraised value
  • Notary fees: 1–2% of the transaction value
  • Bank processing and origination fees: 1–2%
  • Title registration fees
  • Attorney fees
  • Property appraisal: $400–800 USD

Frequently Asked Questions

See Your Monthly Payment

Adjust sliders to estimate your DR mortgage payment

Property Price$200,000
$50,000$1,000,000
Down Payment35% — $70,000
10%60%
Annual Interest Rate13%
6% (USD)20%
Loan Term20 years
5 yrs25 yrs

Monthly Payment

$1,523

20-year loan at 13%

Loan Amount$130,000
Down Payment$70,000
Total Interest$235,532
Total Cost$365,532

Estimate only. Actual payments depend on bank-specific terms, fees, and insurance. Does not include property insurance or closing costs.

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