Banking In Aruba
Opening a New Bank Account
For non residents or new residents opening a new account in Aruba the following applies:
- Valid passport and driver’s license and/or national identification document.
- Two reference letters from two different well-known banks, addressed to the Aruban bank. If it is not possible to submit two letters from two different banks, please submit in addition a bank reference letter, a reference letter from a reputable Attorney or Law Firm in your neighborhood or country. The reference letters must be originals (not copy or faxed).
- The prospective customer has to be in person at the Aruban bank to open any accounts. Mail request to open accounts is not possible.
- Signed source of ‘Funds Declaration’, obtained at the Aruban bank.
- Completed and signed ‘Transaction Profile’, providing detailed information regarding the anticipated activities and nature of the transactions.
- Salary slip and/or a recommendation letter of employer.
- All new accounts opened are subject to approval by the Compliance Officer of the Aruban bank.
Local bank Loan / Mortgage to Purchase a Home
Please see the features below for a typical Aruban bank loan/mortgage. Features may differ from bank to bank.
- 60% financing of the residential home’s existing market or construction offer (for homes to be constructed).
- 7-30 year mortgage loan terms until the client’s age of 65*.
- 7.25 to 9% annual variable interest rate, annuity based.
- Up to 6 months of grace period.
- Construction funds disbursed over phases with control reports at each phase (extra fees involved for the control reports).
- Fire insurance premium payment plans up to 10 months (interest equal to mortgage rate).
- 1 to 2% closing fee on the amount financed.
- Mortgages typically end at the client’s retirement age of 65. However, the maturity date of a mortgage can occur at a higher client’s age depending on income and local life insurance coverage.
The Following requirements, usually, applies for an Aruba loan/mortgage for a home:
- Minimum client age is 21.
- A work contract with proof of income over a period of 12 months (i.e. W-2 tax returns, or income declaration from an internationally recognized accounting firm).
- Two signed recommendation/introduction letters from the applicant’s financial institutions (bank, stock brokerage firm, etc) addressed to the Aruban bank.
- Photocopy of the applicant’s and spouse’s passport and driver’s license.
- An appraisal report from a recognized appraiser on Aruba (report cannot be older than 6 months since date of report publication; fee varies from $170 to $500 depending on house size).
- 40% down payment on the residential home’s market value/sale price or construction offer.
- A local fire insurance policy for the reconstruction value of the residential home.
- A local life insurance policy equal to the amount of the mortgage with the Aruban bank as first beneficiary. Life insurance must be confirmed by the insurance company before first disbursement can be made or signing of the mortgage deed.
- A mortgage deed established and registered on Aruba ceded to the Aruban bank.
- Three monthly payments on a deposit/savings account (interest rate of 4 %, current market rate) at the Aruban bank as an eventual payment reserve.
- Loan payments are usually made via a checking account at the Aruban bank.