Mortgage loans in Panama

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If you decided to invest your savings in real estate and buy a house or apartment instead of renting, but you don’t have enough budget at your disposal, mortgage loans (a long-term loan) in Panama are a very useful way for you to complete your purchase.

You don’t have to be a resident to get a mortgage loan. Mortgage loans are given by banks in Panama. Different bank will offer different percentages or different ways of payment. For foreigners, getting a mortgage through a Panama bank requires a lot documentation, but it is now easier than it used to be.

Basically, there are two types of credits: Open credit and closed credit:

Open credit is a continuous credit, although it usually comes with a limit on how the amount of money much you can borrow. This is also known as “revolving credit” because as you pay back the money that you owe, you can reuse the credit again up to a certain limit.

Closed credit is extended in a limited way. Even after you paid the money that you owe, you must qualify again each time you want another loan.

As said earlier, there is no need to be a resident to get a mortgage loan, but you need to be under 75 years of age. So if you are 50 years old, you can only get a 25-year loan. To qualify for a loan, the banks are more interested in your ability to pay back the loan and the property’s loan to value ratio, so that is why a lot of documentation is required by the banks. They are looking for documents that verify your income and that determine the value of the property you are buying.

Note, that Panama banks will give loans on land that is titled, or had some improvements or is located in an urban or developing area.
The moment the bank has all the necessary documentation, it goes to the bank’s credit committee. The committee has 14 days to check your loan application. If it is approved, you get to review the terms of the loan. If you agree to the loan, you need to sign it and return it to the bank. Once you do that, the bank will issue a promissory letter for the approved loan amount.

MLS Acobir, is the most preferred property list in Panama. Please contact us for all of your Panama Relocation and real estate needs.



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