FAQ

Buying or remodeling a house is not an every day happening, and can be an exciting yet very tensing process. To make it easier on you, we answer the most frequently asked question related to the financing of a house below.
 

Why a CHB mortgage?

  • CHB offers a stable interest rate. There are no unpleasant surprises; our track record proves that.
  • CHB does not charge any closing fees.
  • CHB’s mortgage loan calculation is more economical.
  • CHB helps you save monthly for your life and property insurances. You pay one fixed amount per month.
  • CHB offers you an affordable payment plan up to your 70th birth date.

What amount can I borrow?

In general you can borrow up to 100% of the market value of the mortgaged property as mentioned in an appraisal report, depending on the particulars of the case. The appraisal report may not be older than one year and should be compiled by an appraiser on the list of CHB.

How many years do I get to pay off my mortgage?

The maximum term to repay a mortgage is 35 years, depending on the particulars of each case. Also the repayment of the loan should be competed before the age of 70 of the mortgagor.

Can I encumber the land I rent from the Government?

You can only take out a mortgage on land that is obtained either in ownership or in long lease (‘erfpacht’). You may take a copy of your rental agreement, prove of identification and a stamp for the amount of ANG 5 to the Domain Board (Domeinbeheer), where you can complete a form requesting to convert the rental agreement into a long lease agreement for the relevant parcel of land.

Do I have to be married to obtain a mortgage together with my partner?

No, that won’t be necessary. You may have to submit a notarial co-habitation agreement detailing the division and partition of the possessions after termination of the relationship, in particular the provisions for ownership of the mortgaged real estate.

How can I buy a house at a public auction?

If your application qualifies, including prove of life insurance matching the required capital, you will receive a letter of guaranty specifying the maximum amount you can offer at a public action.

Can I get a mortgage for the division and partition of a community of property?

Yes, provided your structural personal income suffices to repay the mortgage and the value of the collateral meets the requirement for the amount of the loan.

I already have a home; can I buy a second house?

Yes, the purchase a second house is permitted, against the same mortgage rate.

Can I buy a piece of land and construct my house right away?

If you have the necessary building permit you can construct your house immediately following the approval of your mortgage loan for both the purchase of land and the construction. The total amount for the construction of the house is kept in account with the bank and is released in parts following the completion of a preceding building phase.

Do I have to repay my mortgage completely before I can take out a new loan?

No, this is not required at CHB. We offer tailor made mortgages, with the possibility to extend or shorten the term, with facilities for additional repayments and other facilities.