Panama: Preferential Housing Interests

Until May 21, 2025, the plan to grant preferential interest rates for mortgage loans in the country was extended.

Tuesday, May 21, 2019

On May 20, Law No. 85 was published in Gaceta Oficial, which was approved by the National Assembly in April of this year and sanctioned this week by President Juan Carlos Varela.

See "Preferential Interest Law for Housing Sanctioned"

Among the most important changes is the modification of the value of the properties that apply for preferential interest, since now the State assumes 100% of the bank interest on housing, whose value is up to $40,000. reviews that "... From $40,000 to $65,000, the State assumes 4% of the bank interest and from $65,000 to $120,000 covers 2%. Homes exceeding $120,000 are excluded from the benefit, that is, the buyer must pay the full interest rate prevailing in the financial market."

See full publication in Gaceta Oficial.

More on this topic

Real Estate Sector Takes Advantage of Preferential Interest Rates

November 2013

In Panama the scheme which provides financing with preferential interest rates is a major factor in the growth of mortgage loans.

With the enactment of Act 3 of 1985, which established a system of interest rates in certain mortgage loans, residential mortgage financing has shown good performance. It has also supported the construction sector as a way to reduce the housing deficit in the country.

Preferential Interest Law for Housing Sanctioned

September 2013

In Panama, preferential interest has been extended to projects whose value is not greater than $80 000, where previously they could not exceed $65,000.

From a press release from the National Government of Panama:

With the aim of encouraging housing construction and maintaining the momentum of investment in infrastructure needed to alleviate the demand for housing and allowing more Panamanians to have access to these projects, President Ricardo Martinelli has passed Act 63 amending preferential interest rate loans.

Panama: Preferential Interest Rates for Houses up to $40,000

March 2013

An amendment has been made to Act 3 of March 1985, which establishes a preferential interest rate system on mortgages, increasing the limit of the first band from $35,000 to $40,000.

From a press release issued by the Ministry of Economy and Finance (MEF) of Panama:

The Bill No.

Panama: Mortgage Lending up 11%

October 2012

The extension to $120,000 of the cap for purchasing housing at preferential rates will cause growth in mortgage lending.

Up to last July, the balance of the mortgages with the Preferential Act increased by $45.6 million, up from $2.558 million to $2.603 million.

According to an article in, Peter Detresno, company president of Pedros Real Estate, said that "the impact of increasing the range of prime interest was obvious and the proof was the last Capac Expo Habitat 2012 fair, where about 80% of sales or inquiries were made about housing projects in that range. "

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