Can You Get a Mortgage in Panama as a Foreigner?
Short answer: yes, foreigners can get a mortgage in Panama.
The longer answer is that it is possible, but it works very differently from what many people are used to in the US, Canada, or the Caribbean.
If you are considering buying property in Panama, especially as a foreigner or future resident, understanding how local financing works will save you time, money, and a lot of frustration.
Let’s break it down in plain English.
Do Panamanian Banks Lend to Foreigners?
Yes. Panamanian banks do offer mortgages to foreigners, including non-residents. However, approval is stricter, down payments are higher, and documentation is more detailed.
Banks are very conservative here. They prioritize stability, provable income, and long-term ties to Panama.
Some of the banks foreigners commonly work with include Banco General, MultiBank, and Banistmo.
Each bank has its own criteria, but the overall structure is similar.
Typical Mortgage Requirements for Foreigners
As a foreign buyer, expect the following:
Down payment
Most banks require 30% to 40% down for non-residents. Residents may qualify for lower down payments, but foreigners should plan conservatively.
Proof of income
You must show stable, verifiable income. This usually means bank statements, employment letters, tax returns, or business financials if you are self-employed.
Credit history
Panama does not automatically recognize foreign credit scores, but banks may review credit reports from your home country.
Having some form of banking history with the local bank is a plus.
Bank references
Personal and sometimes business bank reference letters are commonly requested.
Property appraisal
The bank will commission its own appraisal, and the loan amount will be based on the lower of the purchase price or appraised value.
Mortgage Terms You Can Expect
Mortgage terms in Panama are not the same as in the US.
Loan terms are often 20 to 25 years, sometimes shorter for non-residents. Interest rates are typically higher than what many foreigners are used to, and rates may be fixed for a short period before adjusting.
Some banks also require that you open a local bank account and maintain a minimum balance.
Does Residency Help?
Absolutely.
If you have legal residency in Panama, your chances of approval improve significantly. Residents often qualify for better terms, lower down payments, and smoother processing.
This is one reason many people choose to start their residency process before purchasing property, especially if they plan to live in Panama long-term.
Can You Buy Without a Mortgage
Yes, and many foreigners do.
Cash purchases are very common in Panama. Some buyers use funds from selling property abroad, savings, or financing from their home country instead of relying on local banks.
In some cases, developers offer direct financing on new construction, which can be more flexible than traditional banks, though interest rates may be higher.
Is Getting a Mortgage in Panama Worth It?
That depends on your goals.
If you want leverage and plan to stay long-term, a Panamanian mortgage can make sense. If you prefer simplicity and flexibility, a cash purchase or foreign financing may be easier.
The key is understanding your options early and not assuming the system works the same way it does back home.
Final Thoughts
Yes, foreigners can get a mortgage in Panama. It is possible, realistic, and done every day. But it requires preparation, realistic expectations, and often patience.
If Panama is part of your long-term plan, understanding the financing landscape is just as important as choosing the right neighborhood or property.