Panama mortgage loans for foreigners

One of the many questions we receive is what are the requirements for a mortgage loan. Each bank has their own list of requirements and not all cater to expats arriving to Panama. All banks ask that a bank account be opened with them as additional collateral, which in turns means that a new customer must provide all due diligence and know your customer documents.

We received this list from Credicorp Bank which responded to our survey:

A. Source of Funds Identification

This process is necessary to identify the source of funds and also to measure the large of the account. Basic documents are as follow:

1.Personal Accounts

• Personal accounting balances

• Personal Income Tax Declaration

• Last two month personal bank account statement.

2.Corporation Accounts.

• Copy of the Registration of the Corporation

• Balance Statement of the corporation. Must be stamped/duly signed by an Authorized Accountant.

• Last two month personal bank account statement.

B. References.

1.Personal Accounts

• Personal Bank References

• Personal Credit Office References (from a credit bureau office).

2.Corporation Accounts.

• Corporation Bank References.

• Commercial References of a Service Provider or important client.

• Corporation Credit Office References (from a credit bureau office).

C.Copies and Other Documents.

1.Personal Accounts

• Passport copy (copied in the bank premises.)

• Driver License (copied in the bank premises)

• Copy of a utility bill.

• Fill out of internal account opening forms.

2.Corporation Accounts.

• Copy of a utility bill.

• Copy of product brochures, annual corporation book or any other important document related to the operations of the corporation.

• Fill out of internal account opening forms.

D. Mortgage Loans.

1.Basic Documentation

• Draft of Sale Contract.

• Fill out internal forms.

• Most recently-made appraisal (if required)

• Copy of the Title (if required)

• Opening of Bank Account (information above).

2.Basic Parameters (subject to negotiate)

• Competitive Interest Rates

• Term up to 30 yrs for personal and 15 yrs for commercial

• Loan amount up to 70.0% of property value.

• Life insurance of debtor for total amount of loan endorsed to the bank.

• Fire Insurance for 80.0% of construction value per appraisal submitted endorsed to the bank.

• 1.0% of FECI tax (if applicable)

• Up to 1.0% of commission based on loan amount.

Their website has a handy online mortage calculator.
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