Banks in Cape Verde and product for financing off plans continues to be very limited. It is highly unlikely in current world environment that any new players will come to market or lenders will increase in accessibility.
Cape Verde has just 4 main banks not all of which provide loans. Interest rates range from 6 month Euribor plus 4.5% to 3.5%. With Euribors dropping this makes average rates around 6% as of February 2009.
By far the biggest issue with lending in Cape Verde is that Cape Verde banks have no concept of customer service or any understanding of how important it would be for a client to understand and secure certainty on their borrowing requirements. Good brokers willing to persevere with Cape Verde banks are few and far between. This is a real problem for the overall market as few clients can dedicate the time needed to applying direct and without active brokers there is no relationship building and education happening between the banks and their end users helping improve the overall service for borrowing in this emerging market.
The cost of doing business in Cape Verde and time required on each application makes it currently unprofitable for most brokers to remain active in the market. For Cape Verde expect to pay high broker fees, the support you will get will be worth it even if the whole process still seems slow and painful.
Tags: Cape Verde, Cape Verde Mortgages