When refinancing makes sense
Most Cayman mortgages are variable and priced off KYD prime, so when prime moves your rate moves with it; a cut you get automatically is not a reason to refinance. Refinancing is worth a look when one of these is true:
- Another lender's margin over prime is lower than yours. Prime is the same everywhere; the margin is what differs. Half a percent on a CI$400,000 balance is about CI$2,000 a year.
- Your circumstances changed and your lender will not re-price: a better salary, a cleared loan, or equity that has grown past the lender's loan-to-value threshold.
- You want a different term. Shortening it cuts total interest; lengthening it lowers the payment. Your own bank may do this as a variation without a full refinance.
- You need to borrow against equity for a renovation, land or a second property. See the equity calculator for how much is available at your lender's cap.
It rarely makes sense when the rate gap is small and little of the term is left; the interest you would save is front-loaded in the early years, and the fees are the same whenever you pay them.
What a refinance costs in Cayman
| Cost | Typical amount | Why |
|---|---|---|
| Stamp duty on the new mortgage | 1% of the sum secured up to CI$300,000; 1.5% of the whole sum above | A new legal charge is a new instrument under the Stamp Duty Act. A variation of your existing charge with the same lender is generally not re-stamped unless the sum secured rises; ask your attorney which yours is. |
| Legal fees and registration | Quote from your attorney | Discharge of the old charge, preparation and registration of the new one. Less than a purchase, which also carries the conveyance. |
| Valuation | Around CI$600 (est.) | The new lender wants a current valuation from an approved surveyor. |
| Bank arrangement or commitment fee | Often a share of the loan; sometimes waived to win the business | Ask whether it can be reduced or added to the loan. |
| Early-repayment charge | Depends on your current offer letter | Some facilities charge a percentage of the balance if repaid within a set period. Check the letter before anything else. |
| Life and building insurance | Usually carried over | The new lender is named on the policies; no new premium unless the cover changes. |
Put the real quotes into the calculator on the right and it tells you the break-even month.
Same lender or a new one?
- A re-price or variation can avoid new stamp duty and most legal cost
- Bring a competing offer in writing; it is the strongest argument
- Ask for the margin over prime, not just "the rate"
- The new margin covers the fees within a few years and you plan to stay
- Your bank will not match, or will not lend the extra you need
- The new lender waives or reduces its arrangement fee
Step by step
- Read your current offer letter for the margin over prime, the early-repayment terms and the remaining term.
- Get two written offers, one from your bank and one from a competitor, each stating margin, fees and any cash-back.
- Ask an attorney for a fixed quote and whether your case is a new charge or a variation (this decides the stamp duty).
- Run the break-even with the real numbers. If you will be in the home past the break-even month, it pays.
- Keep the payment the same if you can afford it: paying the old amount at the new rate shortens the term and multiplies the saving.
Common questions
Do I pay stamp duty again when I refinance?
If a new legal charge is registered, which is what happens when you move lenders, yes: at 1% or 1.5% of the sum secured under the Stamp Duty Act's mortgage schedule. If your existing lender varies the current charge, duty is generally only charged on any increase in the sum secured. Your attorney confirms which applies.
Can I refinance to take cash out?
Usually, up to the lender's loan-to-value cap and subject to affordability. The equity calculator shows the ceiling; the whole new sum is what gets stamped.
Will a rate cut from the bank change my payment automatically?
On a prime-linked variable mortgage, yes: the bank re-sets the payment when prime changes, with notice. That is not a refinance and costs nothing.
Is there a Government concession for refinancing?
No. The Caymanian concessions apply to stamp duty on the purchase (the transfer), not to the mortgage charge.
- Stamp Duty Act (2019 Revision), Schedule: "Mortgage": 1% of the sum secured up to CI$300,000; 1.5% of the whole sum where it exceeds CI$300,000. Lands & Survey Department, Cayman Islands Government.
- Cayman National: interest rate notices: KYD prime 7.00%, raised from 6.75% on 18 September 2026 (checked 1 October 2026).
- Stamp duty guide on this site, for the purchase-side concessions and why they do not apply to a refinance.
- Legal, valuation and arrangement-fee figures are planning allowances drawn from lender and attorney practice, not published tariffs; get quotes.