Terms and Conditions for Financing a Primary Residence for a FULL TIME Resident of Panama

June 15, 2004

Panama Realtor is constantly looking for new and better services for our clients. After a recent meeting with the Bank of Nova Scotia we are happy to announce the the following terms for financing homes for foreigners. To date this is the best offer we have found.


Up to 75% of the purchase price or estimated market value, whichever is the lesser.

Interest rate:
6.25%, p.a., adjustable at the Bank’s option with a 30 day notice.

Five (5) years renewable at the Bank’s option for three (3) additional terms of five (5) years each (Total amortization of 20 years). The maximum amortization period will be subject to factors such as Borrower(s) age and Outside Worth.

First mortgage and antichresis over the property.

Borrower(s) life insurance policy for the amount of the loan, endorsed to The Bank of Nova Scotia.

Fire insurance policy with catastrophic extension for the amount of the loan, endorsed to The Bank of Nova Scotia.

Bank Commission:
1% of the amount of the loan payable at time of loan drawdown.

General Conditions:

  1. Borrower(s) to cover legal and registration expenses.
  2. An appraisal of the property given as security to report an estimated market value at least equal to the purchase price.
  3. Opening of a savings account, through which, the payments for the loan will be deducted, with a minimum balance equal to three (3) monthly installments.

Documentation Required:

  • Job letter and copy of two pay slips (for borrowers currently earning a salary).
  • Copy of the last three personal income tax declarations and/or business income tax declarations or audited financial statements.
  • Two clear copies of identification cards “cédula” or passports.
  • Adequate Verification of sufficient personal assets (copy of bank account statements, real estate titles, bonds, common stock, etc.).
  • Copy of the Purchase-Sale Agreement.
  • Copy of public utility bills of your current primary residence (i.e., electric, water, phone, two out of these three)
  • Minimum of one and preferably two Bank reference letters from recognized bank(s), acceptable to Scotiabank, Panama Branch.

Borrower(s) will be able to make extraordinary principal payments. However, if such payment is made during the first year of the loan, there will be a penalty fee, equal to 1% of the amount being prepaid. After extraordinary principal payments are made, the monthly installment will be adjusted.

The terms and conditions and loan pricing described herein are subject to periodic review by the Bank at the Bank’s sole discretion. This proposal is subject to the analysis and final approval of the loan by Scotiabank Panama’s credit committee.