This product is used for financing purchases of urban land for residential use.
- Being able to set up a mortgage with a sound, reliable bank
- Option of obtaining coverage from the collective life and fire insurance policies that the Bank maintains for residential mortgages.
- Competitive interest rates
- More than 40 conveniently located branch offices for paying your monthly installments.
- Through our on-line banking facilities you may check on the balance of your mortgage loan and details of the last payment made (subject to our regular membership policy)
¿How can I obtain a loan for purchasing land?
Send us your personal information by clicking on the "Apply Now" link (button) that appears alongside the product in question or ring: (507) 321 4722.
- An application form signed by all those involved (as provided by the bank).
- A signed authorization form for references to be obtained from outside credit bureaus for each of the persons involved (as provided by the Bank)
- Copies of the IDs of all those involved (ID cards or passports, as applicable).
- Foreign residents in Panama must provide their resident permits or green cards (as issued by the Panamanian Immigration Service) as well as their work permits
- Pro-forma or promissory sales contract
Proof of income:
- Original letter of employment.
- Pro-forma employment certificate (employees receiving a salary from the Panamanian Comptroller General Office
- Latest proof of payment of social security contributions(in the case of private sector employees)
- Pay stub: required in the case of government employees or private sector employees who are exempt from paying employer contributions to the social security system (such as embassies and international organizations), or as evidence of additional income
Retirees or holders of social security pensions
- Legible photocopy of latest pay stub.
- Social Security card.
- Original retirement certificate issued by the Panamanian Social Security System.
- Retirees and holders of social security pensions (forms 13, 15, 20 or 23) must present the corresponding Social Security Resolution.
Retirees from the Panamanian Comptroller General Office
- Photocopy of latest pay stub.
- Social Security card.
- Employment certificate on the part of the debtor.
PRAA pension holders and retirees
- Photocopy of latest pay stub
- Social Security card.
- Pension certificate issued by the PRAA management firm.
Holders of Federal pensions:
Panamanians who receive a pension from the US Government for having worked on the Panama Canal may present one of the following documents:
- Photocopy of the last pension check issued by the US Government, or
- Photocopy of the account statement showing the last monthly pension check received, or
- Photocopy of an account statement for the current year, as issued by the US Government.
- Last two tax returns
The tax returns filed between March 16 and May 15 must be accompanied by a filing extension form signed by a certified public accountant as well as a payment receipt for the estimate amount of tax due. Tax returns filed after May 15 (in the case of private individuals) and May 31 (in the case of corporate entities) must be accompanied by a payment receipt for the corresponding fine.
- Income certificate issued by a certified public accountant for all those individuals who are exempt from filing tax returns (such as farmers).
- Tax returns in the name of the company: businessmen (either resident or non-resident in Panama) providing that the applicant (debtor) can show proof that he or she is the sole owner or shareholder of such.
- Duly audited financial statements for the last two years, together with account statements for the previous six months. For Banistmo clients only.
- Independent business men with no current references from credit bureaus shall be obliged to provide: evidence of deposits made in accounts belonging to other banks (opened at least one year beforehand) or a commercial reference from a well-known company that can be verified (with which the applicant has maintained a relationship of at least 12 months) The deposit must be transferred to Banistmo and represent at least 5% of the value of the mortgage loan
For more information, please ring our Client Help Line(507) 321 4722 or visit your nearest branch office.
1. ¿Can I obtain financing for purchasing land to be used for business purposes such as cattle-raising, agriculture, housing developments etc.?
No. Financing is only available for purchasing land in residential areas or in the countryside or on the beach, the purpose of which is to build a houses or summer homes. In the case of applying for business loans, our advisory staff are on hand to remit you to the specific area within the Bank that deals with this type of financing.
1. ¿Do these loans carry a fixed or variable interest rate?
A variable interest rate.
2. ¿How long will it take to have my application approved?
Our advisory staff shall be able to give you a much better idea of how eligible you are at the initial meeting. Once we receive all the documents we require, we normally take between 2 and 5 business days to formally assess your application.
3. ¿Is the maximum term based on age?
Yes. The term of the mortgage loan plus the age of the borrower(s) must not exceed 75 years.
4. ¿How much is legal expense for registering a mortgage loan.?
Legal expense comes to approximately 1.5% of the property´s selling price and includes drawing up and countersigning the official property record, notary expense and the cost of filing the property with the Public Registry.
5. ¿Is there any extra charge for paying off a mortgage beforehand?
Yes. 2% of the balance owing is charged within the first five years of the mortgage term, beginning on the date this is disbursed.
6. ¿Is it necessary to have a life and fire insurance coverage?
Only life insurance is required, and you will be given the possibility of obtaining protection with the Bank´s collective life insurance policies, or you may choose to obtain coverage from another insurance company or the broker of your choice, providing the corresponding policies offer the coverage required.
7. ¿Must the life insurance policy be made out for a specific amount?
Yes. The life insurance policy must be made out to cover 100% of the value of the loan. In the case of jointly-held loans, both borrowers must be insured.
8. ¿Who are considered acceptable co-debtors?
These may be spouses or family members within a first degree of kinship (brothers, sisters, parents and children). A joint stock company is also considered to be an acceptable co-debtor and is not required to produce proof of income providing its legal representative acts as joint guarantor and complies with all that stipulated by the Bank´s regular policy.
9. ¿Who are considered acceptable co-signors?
An acceptable co-signer must be registered on the title and may be a third person different from the borrower who is either a private individual or a legal entity.
10. ¿What does the term "level of indebtedness" mean and how is this calculated?
A borrower´s level of indebtedness is the ratio between his or her monthly obligations (including the monthly installments on his or her new mortgage loan) and his or her monthly income. A borrower´s level of indebtedness can vary based on whether he or she is an employee, self-employed or has retired from working life, as well as whether his or her income is sourced locally or abroad.
11. ¿When do I have to present the original documents?
Before signing the deeds. Photocopies or scanned copies of the original deeds can be used for the credit approval process