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.
Product features
- 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 disbursem*nt 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.