Mortgages In Panama

Qualifying foreign nationals can freely own property in Panama. Strict international standards are applied to Panama banking laws and a wide variety of banks offer modern mortgage facilities to all nationalities.

Below an outline of the mortgage situation in Panama.

In order to qualify for a mortgage in Panama: Foreign borrowers need to be between 18 and 75 years of age. They must either not be living in Panama at all, or have been living and working in Panama for less than two years.

Documents required are: Evidence of income (copy of last two income tax declarations or employment contract); copy of your valid Passport; a good credit bank reference and a completed application form.

Average Interest Rates:	Amount	Interest Rate
	Up to USD 150,000	6.50% p.a.
	Over USD 150,001	6.25% p.a.

Along with many other discounts and tax benefits, under the government’s Pensionado Programme, retirees receive a 1% reduction on home mortgages for homes used as personal residences.

The bank will need an appraisal of the property for the purposes of fire insurance, as well as insurance for 80% of the property valuation, and life insurance for 100% of the loan balance.

In general, banks lend between 75 and 80% of the property value over repayment terms of up to 30 years. Principal home purchasers or home improvers can borrow up to a maximum of USD 500,000, while holiday homebuyers can obtain a maximum of USD 300,000.

Land purchase for the construction of property can be financed up to 50% or a maximum of USD 150,000 over a repayment period of 15 years.

If you have property in your own country and would like to borrow against this in an equity release plan, we can introduce you to independent financial advisors who can help you raise the necessary finance.