Securing a mortgage is an important step in the Panama Real Estate purchase process and it can be successfully achieved through banks with departments that specialize in providing mortgages to non-residents and residents investors.

 

At Flat Fee Realty we know that every client is unique, so we will provide assistance through our Banking Network so you can determine which mortgage plan is right for you.

 

 

 

 

• Appraisal of the property being financed. The bank will assume the cost of the appraisal. The Bank’s percentage of financing (90%) is based on the lower of the appraised value or purchase price.
• Borrower(s) life insurance for the amount of the loan endorsed to the bank.
• Fire insurance policy covering 80% of the improvements made to the property given as security.
• Borrowers responsible to cover legal and registration expenses

 

 

• 30 years (or shorter if you're approaching 75 years of age)
• Fixed rate based on the Libor rate or variable based on Prime Rate
• 1% FECI tax for non first residence property

 

 

 

• Appraisal of the property being financed. The bank will assume the cost of the appraisal. The Bank’s percentage of financing (70-75%) is based on the lower of the appraised value or purchase price.
• Opening of a saving or checking account, through which, the loan monthly payments will be deducted, account should maintain a minimum balance equal to three (3) monthly payments.
• Borrower(s) life insurance for the amount of the loan endorsed to the bank.
• Fire insurance policy covering 80% of the improvements made to the property given as security.
• Borrowers responsible to cover legal and registration expenses

 

 

• 15-25 years (or shorter if you're approaching 75 years of age)
• Fixed rate based on the Libor rate or variable based on Prime Rate
• 1% FECI tax for non first residence property
• 1.5% closing fees

 

 

• Job letter and copy of two pay slips (for borrowers currently earning a salary)
• Copy of the last three income tax returns and/or audited financial statements.
• Two (2) picture identification cards.
• Asset verification (copy of bank accounts statements, real estate titles, bond, common stock, etc)
• Copy of purchase & Sale Agreement
• Two (2) copies of public utility bills of your current primary residence (water, phone, electric).
• Two (2) bank reference letters from recognized banks
• Copy of a Reference Credit Report from your country of residence (Equifax or Transunion for USA and Canada residents

 

In summary, Panama's strong banking system and flexible lending policies for foreigners provide investors a unique advantage over other offshore retirement and investment destinations

 

NOTE: When the owner of the property is a corporation, the following documents are needed: articles of incorporation, fee payment receipt, minutes of the buying corporation's shareholders meeting authorizing the transaction and designating the individual representing the corporation signing on its behalf (attach the designated person's ID Card)

 

For mortgage pre-approval, the following documents are required:

 

• Copy of signed purchase and sale agreement
• Copy of passport
• Copy of past two year's income tax receipts
• Two bank reference letters