Residential Mortgages in Panama

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A new real estate wave is bringing the market back to life, although without the same strength in all areas. The neighborhoods of San Francisco and Bellavista are currently seeing the most growth in construction.

Martesfinanciero.com analyzed this market and considers that all signs are positive: “banks are willing to lend, developers are ready to supply and there is enough demand from qualified consumers”.

Other factors contributing to a favorable future for the sector include $10 million subsidies from the government for home ownership, improvements in legislation and lack of limitations for foreigners to own land or real estate.

Source: martesfinanciero.com

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During this year, the "Caja de Ahorros" (CA) aims to place $170 million in Mortgage Loans.

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March 2009

Applications for housing from the Institute for the Promotion of Insured Mortgages (FHA) decreased by 25% in 2008.

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The measure must be passed in the National Assembly by amending the act, which is expected to happened very quickly.

A current limit of $80,000 has been established as the maximum value of homes that can be financed under the law, which allegedly has led to low-quality housing solutions being built to keep costs within that range.