One of the big advantages for foreigners in Panama at the moment to invest, is that they have the same rights as Panamanians in terms of loans, which turns out to be very interesting, in addition to the fact that the bank system in Panama is very stable and sophisticated, which provides a great security to investors.
Banking Mortgages in Panama for real estate
Panama we have a number of national and international banking entities with the capacity to manage mortgages to nationals as foreigners, many of the banks offer very competitive terms, which makes banks a very competent market where is possible to choose most suitable for you.
It is also important that you know that according to your investment and the use that you are going to give, banks can offer different terms.
Panamanian banks work in a singular way. For them it is of great value to determine your capacity of payment and the relationship of the loan to the value of your property, for this reason the banking procedures are a bit tedious, because you must deliver a large amount of documents that prove your income, in order to approve your mortgage.
It is important to keep in mind that if you are a foreigner you must meet certain criteria to qualify for a mortgage, basically keep in mind that loans to foreigners in Panama are offered with terms of maximum 25 years, are usually approved in ranges of 10 or 15 years, also is very important to know that as a foreigner, your loan term must finish before you turn 75, so start from here, before making your requests.
Banks in Panama, usually mark the requirements below:
- Over 21 years old.
- To complete credit application according to the bank.
- Personal identity document.
- Full valid passport.
- Current Migration Card.
- Valid work permit.
- Proof of income in case you apply in this way (CSS card, letter of work or income tax returns).
- Check of assets (bank accounts, retirement accounts, etc.)
- Property assessment that doesn’t have more than 6 months.
- Commercial benchmarks and job references.
- Presentation of financial statements.
- Copy of the purchase sale promise contract
- Signed purchase contract and in many cases, letters or proofs certifying of payments made.
- Copy of a receipt for electricity, water or another service that proves the current address.
- Life insurance with an insurance company in Panama, this insurance must be minimum for the total amount of the property to be mortgaged.
- Fire insurance that covers 80% of the property.
- Certificate of title of property by Public Registry Panama.
Bear in mind that carrying out the procedures, banks in Panama need that whole documentation from other countries must be authenticated by a Panamanian consulate.
When the buyer meets all the requirements and has delivered the whole documentation for the purchase of the apartment or house, the bank company takes an average of 14 days to process the approvals. In this time range, the bank’s credit committee is responsible for analyzing your case based on your income and your repayment capacity. Once approved, the bank will issue a loan terms sheet so you can verify it. If you agree with the terms, you proceed signing of the conditions sheets, and then the bank issues an irrevocable letter of payment for the amount of the approved loan.