FAQs on Mortgage Loans in Panama
What is the utility of a mortgage broker service?
The mortgage broker has the expertise and updated loan policies of each bank that change frequently. This is important to evaluate your case promptly and assist you in the selection of potential banks.
We have excellent relations with all the banks in Panama that offer mortgage products, which assures you expedited processing of your loan and a high level of service. We believe in complete transparency and provide a high customer service with monitoring the process of your loan. We are the right hand of the banks in Panama.
Why do I need an appraisal?
One requirement of the bank is that at the time of disbursement to check the accuracy of the property value. This applies to any type of loan and housing both built and pre-construction.
Are there penalties if I pay my loan before the agreed term?
Yes, generally equivalent between 1 to 3% of balance due to the date when the payment is made for cancellation of the loan. This penalty is usually applied during the first 5 years of the loan.
What are the costs associated with a loan?
The payment for our facilitation services, closing costs fees which vary between 0.5 to 2% of loan amount and the life insurance and fire insurance policy.
Why I need a life insurance policy for my mortgage loan in Panama?
Life insurance policies are to ensure that if the payer of the loan were to pass away, the family does not stay with the debt of the property.
What is the difference in getting my insurance with the bank or an insurance broker?
The policies of banks are collective, so always apply higher rates and the benefits of life policy belongs completely to the bank.
An insurance broker can quote rates from several insurance companies by getting you more economic options and the benefits of life policy are shared between the bank and your beneficiaries. Therefore, if the payer of the loan were to pass away, the indebted amount would go to the bank and the rest would be for your beneficiaries (family).
For more information on the required insurance policies for a mortgage please see:
“Insurance Guide for Mortgage Loan in Panama”
For more useful information about moving to Panama contact one of our experts today.