The Cabinet Council has approved a revolutionary bill that will transform the preferential interest system for mortgage loans in Panama. This new regulation, which would come into effect in January 2026, eliminates the reference rate and establishes a permanent subsidy with no expiration date, benefiting those seeking to purchase homes valued up to $120,000.
Three benefit tiers based on property value
The project establishes a tiered scheme that especially favors buyers with lower purchasing power:
- Tier 1: Homes up to $50,000 – 4% subsidy for 8 years
- Tier 2: Properties between $50,000 and $80,000 – 3.5% subsidy for 7 years
- Tier 3: Residences between $80,000 and $120,000 – 3% subsidy for 6 years
Jaime Jované, Minister of Housing, emphasized that “the main motivation is to eliminate uncertainty about the expiration of preferential rates. This new law has no expiration date, providing stability to both buyers and developers.”
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Greater flexibility and savings for homeowners
A key innovation of the project is the elimination of mortgage transfer costs. Felipe Chapman, Minister of Economy and Finance, explained that “beneficiaries will be able to freely change banking institutions without penalties, which will promote competition among banks and improve conditions for borrowers.”
Additionally, the government has committed to paying off the accumulated debt of $272 million to banks next April, which will encourage financial institutions to actively participate in these segments of the mortgage market.
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Impact on the real estate market
This new legislation is poised to have a significant positive impact on Panama’s affordable housing sector. With the elimination of expiration dates and increased banking competition, we anticipate an increase in residential development projects in key areas. Developers will likely feel more confident launching new projects knowing that potential buyers will have consistent access to preferential rates.
For property investors, this represents a unique opportunity to acquire assets in emerging communities where development will be stimulated by this financing program. The stability of the program and the ability to transfer mortgages without costs will likely increase property values in communities that fall within these price ranges.
Ready to explore these opportunities?
At Casa Solution, we can help you navigate these new changes in Panama’s mortgage landscape. Whether you’re looking to purchase your first home, invest in property, or develop residential projects that qualify for these preferential rates, our team of experts is ready to assist you.
Contact Casa Solution today to learn more about available properties that qualify for the new preferential interest scheme and start planning your real estate investment strategy in Panama.
