The New World Realty Group has cultivated several relationships with banks in the Republic of Panama for the purposes of assisting our clients to receive the financing they require to finalize their real estate transactions in Panama.
Each bank in Panama has it's own lending requirements but the information listed below is applicable in almost all cases when seeking a mortgage as a foreigner in Panama. Please contact a representative of the New World Realty Group to discuss up to date market conditions.
Level of Financing Available:
Banks in Panama are willing to finance between 60 and 70% of the purchase price of a new home or condo. An appraisal of the property will be performed and the mortgage rates and terms will be decided based on that appraisal -- not on the sales price being offered by the seller. If a seller is offering a property for sale above the appraised market value the banks simply will not finance the transaction.
Typically interest rates on loans in Panama are: 6.5% + 1% FECI /year
Panama Banks will amortize a loan up to a maximum term of 20 years. This 20 year period is divided into 4, 5 year terms which are renewable at the Bank's option. Factors such as the borrowers age, net worth and residency status all factor into the maximum amortization period the Bank's will be willing to offer a potential candidate.
For a Bank to issue financing in Panama in general they require two forms of insurance. A life insurance policy must be taken out on behalf of the borrower for the total amount of the loan as well as a fire insurance policy (including catastrophic extension) for at least the amount of the loan. Both policies must be endorsed to the bank and underwritten in Panama.
Other Charges & Conditions:
The Bank's in Panama charge approximately 1% of the amount of the loan as a commission charge which is due at the drawdown of the loan. The borrower must cover all legal and registration expenses incurred. The borrower must also submit an appraisal of the property at the time of the loan application. The borrower must open a savings account with the issuing bank from which all payments for the loan will be deducted.
- Job letter and a copy of at least 2 pay slips from your current employer
- Copy of the latest 3 personal and / or business income tax statements - or equivalent audited financial statements
- 2 forms of personal ID with pictures - passport, drivers license or equivalent.
- Copy of the purchase - sales agreement
- Credit references from Banks in your country
* All information on this page is presented for information purposes only. Please contact a representative of New World Realty Group for up to date market information and conditions.
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