The rising price of housing is a constant challenge for buyers. Justo Feliz/El Inmobiliario.
SANTO DOMINGO – Monthly mortgage payments have become a heavy burden for hundreds of Dominican families, who see a large portion of their income allocated to paying off loans. Although owning a home represents a vital goal for many, current market conditions have turned that dream, in many cases, into a source of financial stress and a headache that threatens family peace.
Amid this economic landscape, citizens who have purchased homes recount how they have had to restructure their lifestyles to be able to meet their monthly mortgage payments.
“ I pay RD$89,200.00 monthly for my home, for a 15-year term,” says Niulvi Ramos , a psychologist and owner of a natural incense shop. With an approximate income of RD$300,000.00, she affirms that her decision was made with planning and awareness, but not without sacrifices: “I knew it would involve significant adjustments in other areas of my life and my family’s. Although the payment is manageable within my income, it represents a real sacrifice, since we have had to cut back on many things to meet this monthly commitment on time,” she explained.
Ramos points out that the increase in mortgage payments has been evident, especially for the middle class. “The cost of mortgage payments has increased considerably in recent years. This increase represents a challenge for many families, especially those in the middle class, who are looking to access decent housing without compromising other essential areas of their lives.”
Gabriel Imbert , a lawyer, also shared his experience of buying a home. He currently pays around RD$46,000.00 per month , while his monthly income ranges from RD$75,000.00 to RD$85,000.00. “I consider it a fair decision. I consulted with several financial institutions, but the one I chose offered a more streamlined and less bureaucratic process,” he explained. Although he hasn't experienced an increase in his monthly payment because he has a fixed interest rate, he acknowledges that those who don't have this benefit face significant uncertainty. “On the other hand, if the rate isn't fixed, or is fixed for a period of 2 to 5 years, you could face the uncertainty of future market fluctuations that, as a consequence, could increase your interest rate.”
Sarita Arnaud recounts how she and her husband, Carlos Valdez, who is self-employed, pay RD$25,000.00 monthly for five years at a fixed rate of 10%. With combined incomes ranging from RD$80,000.00 to RD$100,000.00, the family has felt the impact of rising housing costs. “Years ago, interest rates and monthly payments were much lower. I suppose this is due to the various economic changes the country has experienced in recent years,” she noted.
Arnaud also explained how the mortgage payment is combined with other significant financial commitments : “This increase has affected us a bit, since we support two daughters, and between university tuition, school fees, language classes, plus the fixed household expenses, it’s not an easy task. We’ve had to sacrifice many things to keep up with the mortgage payments.”
Rising rates
The latest report from the Central Bank of the Dominican Republic states that construction activity accumulated a year-on-year change of -2.3% in January-April 2025, affected by the uncertain external environment and relatively high real interest rates resulting in the readjustment of construction schedules for private sector projects. “This has translated into lower demand for the main inputs used in construction and a slowdown in the sector,” the institution maintains.
In March 2025, the interest rate for mortgage loans reached 11.83% , representing an increase of 0.79 percentage points compared to the same period in 2024, according to a report from the Ministry of Economy, Planning and Development (MEPyD), which said that "relatively restrictive credit conditions for households" persist, despite the cuts in the Monetary Policy Rate by the Central Bank.
In an interview on the program La Ventana de El Inmobiliario , economist Alejandro Arredondo placed the interest rates for mortgage loans in Dominican banks between 14% and 16%.
This is compounded by the constant increases in construction materials. Comparing the results for March 2025 with those of the same period last year, the Direct Housing Construction Cost Index (ICDV) has experienced a rise of 6.28%, according to the report for the third month of the year provided by the National Statistics Office (ONE).
Although experiences vary, they all point to the same reality: acquiring a home in the Dominican Republic is increasingly expensive, and meeting monthly payments represents a significant effort that reshapes families' priorities. Even when installments seem reasonable relative to income, additional household expenses, inflation, and general economic instability make this commitment a constant challenge.
