New law passed clarifies mortgages

On Tuesday, Minister for Planning, Lands, Agriculture, Housing & Infrastructure Jay Ebanks brought forward reforms in Parliament to strengthen transparency and fairness in the mortgage system, with Parliament passing the Registered Land (Amendment) Act, 2026.

The reforms strengthened transparency in mortgage lending by improving borrower disclosures, requiring advance written notice of interest rate changes, and introducing clearer procedures when mortgages fall into default.

The new law also introduced a formal pre-action engagement process, encouraging meaningful dialogue between lenders and borrowers before enforcement action can proceed. The objective was to promote earlier communication, improve understanding of repayment options, and support fair and orderly resolution where financial difficulties arise, the Ministry stated.

Additional amendments modernised aspects of the power of sale provisions, aligning statutory procedures with current lending practices while maintaining important safeguards, including independent valuation requirements and clear legal standards governing enforcement.

Minister Ebanks said the amendments strengthened consumer understanding while maintaining confidence in Cayman’s property and financial systems.

“These changes are about clarity and fairness. They help ensure people understand what they are agreeing to, encourage earlier conversations when challenges arise, and set out clearer processes where action is required. This is about improving transparency while maintaining confidence in Cayman’s land and financial systems,” he said.

The reforms supported the government’s Public & Affordable Housing Policy and Ten-Year Strategic Plan, which aimed to strengthen housing stability and expand pathways to sustainable home ownership for Caymanians. By improving transparency within the mortgage process, the legislation reinforced a fair and predictable framework for both borrowers and lenders, strengthening confidence in Cayman’s land registration system and the stability of its property and financial markets, the Ministry said.

The Act will come into force on a date appointed by Cabinet Order, allowing time for continued engagement with financial institutions, legal practitioners, and other stakeholders to support smooth implementation. The full legislation is available at: https://legislation.gov.ky