Types of mortgages

Mortgages come in several varieties. Two main groups can be distinguished:

1 Mortgages with monthly installments which partly include repayment of the principal. In our markets the most popular of this group is the annuity mortgage.

2 Mortgages that are paid off only at maturity. This group consists of mortgages for which in general the final repayment has not been arranged, such as interest-only mortgage. This form was recently introduced in Curaçao. In addition, this group consists of mortgages in which the final repayment has been arranged through a link with e.g. life insurance, the so called ‘life mortgage’.

As mentioned, the annuity mortgage is the best known mortgage in our local markets. With an annuity mortgage you pay, at a constant interest rate, a fixed amount of interest and principal, the so-called annuity, during the whole term of the loan. Thus the mortgagor pays the same amount to the lender. This annuity is always calculated in such a way that at the end of the term the mortgage is fully repaid. The annuities are typically paid monthly. In the monthly payment to CHB also a contribution to the savings funds for the risk/life and personal accident insurance and fire insurance is included. From these savings funds CHB pays the full annual renewal premiums of such insurances on your behalf.

In addition to the annuity mortgage, we also offer interest only mortgages. These mortgages are paid off at maturity of the loan, often with the capital of an insurance that pays out at a predetermined date. In principle it is also possible to pay off the mortgage with the proceeds of the sale of the collateral.

An interest only mortgage can be combined with an annuity mortgage. Within the various mortgage varieties we align your mortgage to your income, age, career and life style. Whether you are a seasoned professional or a young potential, we customize your mortgage to your individual needs.