Tuesday, May 08, 2007

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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