Evolution of mortgage interest rates in Panama

Mortgage interest rates affect the cost and risks associated with financing your project. They are, therefore, an important factor to consider in the conditions of the offers we propose. See the best rates our advisors have obtained for our clients here.
Panama Interest Rate
Data source: Hipotekya
Financing project Term Mortgage rates
Vivienda Nueva 30 0.00% - 6.00%
Vivienda Usada 30 5.75% - 7.50%
Segunda Vivienda 25 6.50% - 8.00%
Compra de Terreno 15 7.00% - 8.00%
Vivienda Principal 30 5.75% - 7.00%


In Panama, figuring out mortgage interest rates is crucial for borrowers looking for the best deal. Here’s a breakdown of what influences these rates:

  1. Economic Factors:

    • Panama's economic conditions, like inflation and GDP, affect interest rates. When the economy grows, rates might rise to control inflation. During slowdowns, rates may drop to encourage borrowing and economic activity.

  2. Lender Practices:

    • Each bank has its own way of setting rates based on factors like how much money they have on hand and how much risk they're willing to take. They might offer different rates to different people, depending on their financial situation.

  3. Your Financial Situation:

    • Your credit history, income stability, and existing debts play a big role in the rate you're offered. If you have a good credit score and steady income, you might get a lower rate. Riskier borrowers might have to pay more.

  4. Loan Details:

    • The type of loan and how long you borrow for also affect rates. Shorter loans often have lower rates but higher monthly payments. Fixed-rate loans have stable rates, while adjustable-rate loans start low but can change over time.

  5. Down Payment and Loan Amount:

    • Putting more money down and borrowing less can lead to better rates. Lenders might charge higher rates if you're borrowing a lot compared to the value of the property.

  6. Competition:

    • When lenders compete for borrowers, rates tend to be lower. But when there's less competition, rates might be a bit higher.

  7. Property Type and Location:

    • Buying a home to live in usually gets you a lower rate. Buying land or a second property might mean slightly higher rates because it's seen as riskier.

Understanding these factors can help you make smarter decisions when shopping for a mortgage in Panama. It's essential to compare offers from different lenders and consider your financial goals before making a decision.

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