Finance and Insurance

• General finance tips
• Finance requirements for residents
• Finance requirements for non residents
• General Insurance Tips
• Life Insurance
• Types of Property Insurance

General finance tips

When deciding on buying or building, the first important aspect would be to find out what is affordable to you. What you can afford depends on your income, credit rating, current monthly expenses, down-payment and the interest rate.

It is best to begin by checking which financial institution has better interest rates, ask about the different types of insurance associated with buying or building a home, and shop around for the best mortgage deal.

When approaching any financial institution, call first and ask what necessary paper work is required so that once you get to there you are ready. Making an investment such as buying a home, this for some people is a once in a life time investment so you will want to ensure that your needs fits your budget.

Finance requirements for residents

Most financial institutions, require the following:

The person(s) applying for the mortgage must be 21 years and older.
Must be employed about 2 years or more.
Last two to three months payslips,
Valid ID, whether it's an ID card, passport or driver's license.
A letter of recommendation from your current employer.
If constructing a Taxatie report validated within six(6) months.
If buying a home, an appraisal report validated within one (1) year.

Aruba Bank

• Job reference letter
• 2 last payslips - monthly paid
• 4 last payslips - biweekly paid
• Min 2 yrs working
• Valid ID
• Appraisal Report - no older than 6 months
• Construction Quotation

CMB

• Job Reference Letter
• 3 Last Months payslip - monthly paid
• 6 Last months payslip - biweekly paid
• Min 2 yrs working
• Valid ID
• Appraisal report - no older than 6 months
• Construction Quotation

RBTT

• Job Reference Letter
• 2 last payslips - monthly paid
• 4 last payslips - biweekly paid
• Min 2 yrs working
• Valid ID
• Appraisal report - no older than 6 months
• Construction Quotation

Banks and Financial Institutions in Aruba

Finance requirements for non residents

As a non resident that would like to buy or build a home, most financial institutions require a deposit. The deposit amount may vary depending on the bank or financial institution, and the borrowing amount cannot exceed the execution value of the house. In additional to the above requirements as a non resident you will also need:

Proof of income if retired
Two(2) bank reference letters
Local Insurance.

Each bank has different requirements, terms and conditions.

Aruba Bank

• Requirements:
• 40% Deposit
• 2 Bank Reference Letters
• Proof of Income
• 2 Valid ID
• Appraisal report 6 months

CMB

• 50% deposit
• Bank Reference Letter
• Valid ID
• Payslips or Proof of payment
• Loan amount cannot exceed execution value of the house

RBTT

• 50% deposit
• Proof of Income
• Valid ID
• Payslips or Proof of payment

Banks and Financial Institutions in Aruba

General Insurance Tips

Once you have filled in the forms for your mortgage you will now need to fill out forms for Insurance. It is mandatory to have Life insurance coverage. If your mortgage was approved on a couple's income then both applicants would have to take out life insurance policies.

For Non Residents applying for a mortgage it is a must to get insurance locally in order to purchase or build a home.

There are different types of insurance coverage available in Aruba such as Life Insurance, Personal Liability Insurance, Savings Insurance, Term Insurance and Endowment Insurance.

Types of Personal Insurances

Life Insurance

This is coverage, in case you or your partner pass away before the home is completely paid off, the insurance will pay the balance owed on the home to the bank and additional funds will be paid to your heirs.

Personal Liability Insurance

Covers you in the event of an accident and due to the accident you have been deemed disabled to work. With Personal Liability Insurance depending on the severity of your disability, the insurance company will pay the bank or you a percentage of the total amount for which you are insured.

Savings Insurance

This is a combination of savings insurance and a part that covers risk. In Aruba this is referred to as Spaar (save) Verzekering (insurance)

Term Insurance

This is coverage for a period of time or specified "term" of years. If the insured passes away during the time period specified in the policy and the policy is active the amount for which you are insured will be paid to the bank or your beneficiaries.

Endowment Insurance

This is a type of life Insurance that gets paid out once the policy matures. The amount for which you are insured will be paid to the bank whether you are alive or not.

Types of Property Insurance

Protecting your home against Fire and other Damages is your responsibility as a homeowner. All banks require homeowners to have Fire Insurance. Other property insurance is not required by the bank but it's recommended.

Fire Insurance

It is a requirement that every home buyer should have Fire Insurance. Should your home burn down, depending on the nature of the fire, the insurance company will pay you or the bank the insured amount of your home.

Demolition Damage

This is coverage against, theft, floods, earthquakes etc. This insurance is not insisted upon but it's recommended. Some Insurance agencies offer coverage against both Fire and Demolition together in one.

Construction All Risk Insurance

Construction all risk insurance is a one time payment that is obligatory when building a home. This type of insurance protects the property in case of fire, theft or other natural disasters. The cost of the insurance will depend on the size of the house, the value of the house, materials to be used and the time it would take to complete the house. The contractor has to be registered at the Chamber of Commerce for this type of insurance to be in full effect. If however, your contractor is not registered to do business, then during the construction phase only coverage against fire can be obtained. For construction all risk insurance ask your broker for more information.

Aruba Insurance Companies