Intro
Mortgages in Panama have only recently become available to the
foreign investor. The whole of Panama is firmly establishing it
self as the business hub of Latin America and the banking sector
has helped the current boom by providing finance for foreign
investment.
Availability
As with most countries, the banks will require proof of income
from your country of origin and as a rule, life insurance must be
taken. Whilst it is possible to apply for a mortgage directly, it
will be much easier to use a broker who has developed relationships
with the banks. The normal amount they will loan is up to 70% LTV
for both purchases and re-mortgages.
Cost
Typical interest rates are about 6.75% and the bank usually has
a repayment penalty for the first 2 years. The banks' arrangement
fees are usually 1% of the loan amount. Panama mortgages are
available over a term of 20 years keeping monthly repayments
low.
Application Process
The application takes about 12 weeks to process maybe longer if
you decide to do it without the help of a broker. Many of the banks
have offices in London making the signing of documents fairly easy.
In summary, Panama is perhaps the most developed country as far as
mortgages are concerned in the whole of Latin America.
Mortgage Finance from Frontiers Financial Services
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