Bermuda · cost of capital
Bermuda interest rates: printed, not invented.
Bermuda has no central-bank policy rate. This record separates Government debt yields from bank-posted lending and deposit rates, then shows exactly which figures can—and cannot—inform a property hurdle.
The rate snapshot
2032 notes · July 2022
25 February 2026
Qualifying Bermudians only
36-month BMD/USD
The Bermuda Monetary Authority regulates financial institutions and issues currency, but does not publish a policy, discount or official property hurdle rate. The Bermuda dollar is pegged 1:1 to the US dollar. Bank rates are institution-specific; sovereign coupons and issue yields are historical issuance facts.
BMA mandate ↗Every rate on one scale
The dashed line is Astra's 5% opportunity-cost assumption. It is almost identical to the Government's 5.084% issue yield, but that coincidence does not make either a property return forecast.
Official and bank-printed record
| Date | Issuer / rate | Type | Rate | Term | Source |
|---|---|---|---|---|---|
| 2016-10-19 | Senior Notes due 2027 Government of Bermuda · Fixed coupon at issuance; not a current secondary-market yield. | coupon | 3.717% | 11 years at issue | Primary source ↗ |
| 2018-11-15 | Senior Notes due 2029 Government of Bermuda · Fixed coupon at issuance; not a current secondary-market yield. | coupon | 4.750% | 11 years at issue | Primary source ↗ |
| 2022-07-15 | Senior Notes due 2032 Government of Bermuda · Fixed coupon on the latest primary sovereign issuance located. | coupon | 5.000% | 10 years at issue | Primary source ↗ |
| 2022-07-15 | Senior Notes due 2032 — placement yield Government of Bermuda · All-in yield at placement, 210 basis points over US Treasuries; not a live 2026 yield. | issue yield | 5.084% | 10 years at issue | Primary source ↗ |
| 2026-02-25 | Base lending rate Bermuda Commercial Bank · Indicative residential and commercial floating reference rate; subject to change. | base rate | 3.000% | Floating reference | Primary source ↗ |
| 2026-02-25 | Government Mortgage Guarantee Programme Bermuda Government / Bermuda Commercial Bank · Qualifying first-time Bermudian homeowners only; not available to the international buyer in this case study. | programme rate | 5.000% | Base rate + 2% | Primary source ↗ |
| 2026-02-25 | 36-month fixed deposit Bermuda Commercial Bank · Indicative annual rate; subject to change without notice. | deposit rate | 3.000% | 36 months · BMD/USD · $25K minimum | Primary source ↗ |
| 2026-09-04 | Five-year fixed-term deposit — top tier HSBC Bermuda · Top of the printed tier range; indicative annual return and subject to change. | deposit rate | 2.140% | 5 years · BMD/USD · $1M+ tier | Primary source ↗ |
How the rates enter the property test
Preserved exactly from the supplied workbook.
Your required return, not an official Bermuda rate.
A cost-of-capital cross-check, not a property forecast.
Limits
- The BMA does not set or publish a Bermuda policy rate; Bermuda's dollar is pegged 1:1 to the US dollar.
- Bank lending and deposit rates are institution-specific indicative postings, not BMA or market-wide averages.
- Government bond coupons and issue yields are fixed historical issuance facts, not current secondary-market yields.
- No Bermuda authority publishes an official property-investment hurdle rate or a causal rate-to-house-price coefficient.