Real Estate Mortages in Panama

Overview

In Panama, both nationals and foreigners can access mortgages for Real Estate. Mortgage loans are based on the applicant’s ability to pay and not on credit history as is usual in North America.

However, the mortgage conditions and requirements to obtain a loan depend on each bank, and that is why it is important to compare the terms that each bank offers.

Requirements for nationals

Panamanians can usually access terms with a down payment of less than 30%. They are also eligible for preferential interest loans with government subsidies. And, if they are salaried, they are usually offered loan terms longer than 15 years.

The requirements to obtain a mortgage as a Panamanian include:

  • Social Security Card
  • Last Social Security card
  • Pay stub that accompanies your paychecks each month.
  • Proven job stability. (minimum 2 years).
  • Work letter with itemized deductions (original).
  • 3 Last authenticated Income Tax Returns (Self-employed).
  • Paz y Salvo (Independents).
  • Receipts of Payment of the Statements (Independent).
  • Last Payment Stub.
  • Open a Savings Account.
  • Good Credit References.

Requirements for foreigners

Foreigners are normally required to submit a down payment of at least 30%. Most Panamanian banks and lending houses are rigorous in verifying your documents and a stable and verifiable source of income is required. Foreigners do not have access to government programs for loan subsidies, and usually obtain loan terms of a maximum of 15 years.

Requirements for obtaining a mortgage as a foreigner include:

  • Complete passport photocopy
  • Photocopy of additional identification document (e.g. driver’s license).
  • Recent utility bill in the applicant’s name and showing the applicant’s home address.
  • Credit report.
  • CV (resume showing education and work history).
  • Two original letters of bank references.
  • Two letters of commercial or professional references.
  • Bank statements for the last 12 to 24 months.
  • Income Tax Returns for the last 2 years or Audited Financial Statements.
  • Letter explaining the source of income and stating the reason for the purchase of the property.
  • Proof of immigration status (if your stay exceeds the tourist visa period).
  • Appraisal of the property made by an appraiser authorized by the Bank.
  • Receipt of the purchase contract and support of the down payment.

Contact us

Whether it is for an investment or to own your own home, our team can guide you through the process of obtaining your mortgage loan. Send us a message to info@kraemerlaw.com to learn more about your situation and get the right advice.