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Just a few years ago, villa, penthouse, apartment or condominiums in Panama have cost a lot of money. Today, however, the real estate in Panama dropped in price and local realtors have much more affordable deals. For the price of $100,000 today you can buy real estate in Panama of 80 square meters. Cost of penthouses and villas in Panama were also dropped, so today everyone has the opportunity to take advantage of enticing offers and buy property in the country that represents a pure democracy.

Business Panama
Panama Real Estate Articles: Bank Mortgage Financing
The following are the average terms and conditions of mortgage banks in Panama. This means that specific rates and conditions may vary from bank to bank.
Financing: Between 60% - 75% of the purchase price or appraised market value, whichever the lower.
Interest Rate: From 6.5%, plus FECI 1% per year.
Amortization: Maximum amortization of 25 years. The maximum amortization period will be subject to factors such as Borrower(s) age and Net Worth.
Security: First mortgage over the property.
Insurance: Banks generally require that the borrower(s) contracts a life insurance policy for the amount of the loan, endorsed to the Bank, and a fire insurance policy with catastrophic extension for the amount of the loan, endorsed to the Bank. The insurance must be underwritten in Panama.
Bank Commission: Approximately 1% of the amount of the loan payable at time of loan drawdown.
Other Conditions: 1. The borrower(s) cover all legal and registration expenses charged by Bank.

2.An appraisal of the property given as security to report an estimated market value at least equal to the purchase price.

3.Opening of a savings account, through which, the payments for the loan will be deducted, with a minimum balance equal to three (3) monthly installments.

4.The customer must meet with the lending officer at the Bank at least once.
Documentation Required:
  • Job letter and copy of two pay slips (for borrowers currently earning a salary).
  • Two clear copies of the ID cards or passports. Copy of all the pages in the passport. Copy of the last three personal income tax declarations and/or business income tax declarations or audited financial statements.
  • Adequate verification of sufficient personal assets (copy of bank account statements, real estate titles, bonds, common stock, etc.).
  • Copy of the Purchase-Sale Agreement.
  • Credit references.
The BusinessPanama Group, owner of this website, is one of the largest integrated services groups in Panama. We have experienced real estate brokers, lawyers, bankers, title insurance experts and other professionals to assist clients on any business they need.

At BusinessPanama Real Estate, we can help you with:
  • Buying a property or home in Panama City, Bocas del Toro, Boquete, Islands or Mountains.
  • Forming a company to own your property.
  • Legal services to purchase the property.
  • Applying for your residence program.
  • Title insurance.
  • Home owners insurance.
  • Bank mortgage financing.
  • Others
We work with all mortgage banks operating in Panama such as ScotiaBank, HSBC, Banco General, Banco del Istmo, Banco Cuscatlan, Banco Nacional, Caja de Ahorros and others.

We provide you a "One Stop Solution" for all your real estate needs in Panama. For more information, please contact us

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