Financing a Panama Purchase

Yes, Panamanian banks lend to foreigners: usually up to about 70% of the price for residents and 50–60% for non-residents, over 20 to 30 years, at a variable rate. Expect more paperwork than at home and 30 to 60 days from a complete file to closing.

Speak to a mortgage advisor

Residents to ~70%
Non-residents 50–60%
20–30 year terms
Financed in US dollars

Resident LTV, typical ceiling: 70%
Non-resident LTV: 50–60%
Typical term: 20–30 yr
Indicative rate, variable: ~6.25%

Mortgage calculator

Estimate the monthly principal and interest, then move the figures to your own.

An illustration, not a loan offer. HOA, property tax and insurance are additional — every listing on this site itemises them for that unit.

Who lends

The major local banks — Banco General, Banistmo, Global Bank, BAC and Multibank among them — all write residential mortgages, including to non-residents. Some international banks lend against Panamanian property too, usually only to existing private-banking clients.

Developers of pre-construction projects often offer their own staged payment plans, which are not mortgages: you pay in instalments during construction and arrange bank financing at delivery. Read what happens if you cannot complete — the deposit forfeiture terms vary a lot.

Banks active in the Panama mortgage market

Banco General
Banistmo
Global Bank
BAC Credomatic
Multibank

Named as market context. Casanova is not a lender or mortgage broker and takes no commission from any bank — we help you prepare the file and compare offers.

Typical terms

Loan-to-value

up to about 70% for residents; 50–60% for non-residents.

Term

20 to 30 years, commonly capped so the loan ends by a set age.

Rate

variable is the norm, referenced to the bank's own base rate. Fixed-rate periods exist but are shorter than in the U.S. or Europe.

Life and fire insurance

required, and usually placed through the bank.

A worked example

How the payment scales

On the median asking price across our current sale listings ($465,000), at 6.25% over 30 years:

Loan-to-value	Down payment	Loan amount	Monthly (P&I)
30%	$325,500	$139,500	$859
50%	$232,500	$232,500	$1,432
60%	$186,000	$279,000	$1,718
70%	$139,500	$325,500	$2,004

Principal and interest only — HOA, property tax and insurance sit on top, and every listing page on this site itemises them for that specific unit. The rate here is an assumption for illustration, not a quote.

What you will need

Passport and a second form of ID
Two years of tax returns or audited accounts if self-employed
Six months of bank statements
An employment letter or proof of business income
A bank reference letter, and often a professional one
The signed promesa de compraventa

Documents issued abroad usually need apostille and, if not in Spanish, official translation. Start collecting them before you make an offer; it is the step that most often costs weeks.

Timeline

From pre-qualification to keys

1
Pre-qualification
One to three weeks. The bank sizes what you can borrow before you commit to a property.
2
Offer & promesa
A signed promesa de compraventa, with closing and mortgage dates that match reality.
3
Appraisal
The bank orders a valuation of the property and sets the loan against it.
4
Full approval
Underwriting on a complete file — foreign documents apostilled and translated.
5
Closing
Signing at the notary and registration — typically 30 to 60 days from a complete file.

Pre-approval takes one to three weeks. Full approval, appraisal and closing typically run 30 to 60 days from a complete file — longer if a document has to be apostilled abroad. Build that into the promesa: a contract with a 30-day closing and a 60-day mortgage is a contract you will be renegotiating.

Financing questions

Can non-residents get a mortgage in Panama?

Yes. Several local banks lend to non-residents, usually up to 50–60% of value and against more documentation. A larger down payment and a complete, apostilled file are what move it along.

What currency is the loan in?

Panama uses the US dollar, so mortgages are written and repaid in USD. There is no local-currency exchange risk.

Fixed or variable rate?

Variable is the norm, referenced to the bank’s own base rate. Fixed-rate periods exist but are shorter than in the U.S. or Europe.

How long does approval take?

Pre-approval is one to three weeks. Full approval, appraisal and closing usually run 30 to 60 days from a complete file — longer if documents must be apostilled abroad.

Is a developer payment plan the same as a mortgage?

No. Pre-construction plans are staged instalments you pay during construction; you still arrange a bank mortgage at delivery. Check the deposit-forfeiture terms before you sign.

Questions we have not answered here?

Ask an advisor directly — no fee, no obligation.

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