Panama 💰 USD Last updated2026-05-28

Préstamo hipotecario Calculator Panama

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Quick answer (Panama)

Un préstamo hipotecario de $180,000 al 6.25% en un plazo de 30 años works out to a monthly payment of about USD 1,108, with total interest of USD 218,985 over the full term.

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Mortgage Calculator

USD

Home Value

LTV 80% · No PMI ✓

Loan Amount

Interest Rate

Term

Total Monthly

$1,408

PITI

Principal + Interest

$1,108

55% goes to interest

Total Interest

$218,985

over 30 years

Monthly Breakdown

Principal & Interest$1,108

Property Tax (1.1%/yr)$206

Homeowner's Insurance (0.5%/yr)$94

Total Monthly$1,408

Principal vs Interest Split

45% principal

55% interest

✨ Live recalculation·Includes P&I, property tax, insurance. Estimates only — consult a licensed lender for exact rates.

Reviewed by

Aisha Rahman, CFP®, MBA LinkedIn ↗

CFP® with 12+ years in mortgage & retirement planning.

Local context

Préstamo hipotecarios in Panama

Typical loan

USD 180,000

in Panama

Typical rate

6.25% p.a.

prime borrower, 2026

Typical term

30 years

most common

Market overview

Panama uses the US dollar as legal tender (the balboa exists only as coin), so mortgages are USD products free of FX risk. The market is led by Banco General (the largest private bank), Banistmo (HSBC successor, now Bancolombia group), BAC International, Global Bank (now part of Banco Aliado group), Multibank, Banco Nacional de Panamá (state) and Caja de Ahorros (state). Panama has no central bank in the traditional sense and no monetary policy rate — mortgage rates are set off USD funding costs, broadly tracking SOFR and US prime. Ley Preferencial de Intereses on residential mortgages provides government interest subsidies for owner-occupied homes within price thresholds, distributed via the participating banks. 30-year tenors are the market norm.

Why 6.25% is the typical rate

6.25% reflects a typical USD residential mortgage for a salaried Panamanian borrower under the Ley Preferencial at 80% LTV in early 2026, with the government covering several preferential-interest points on qualifying owner-occupied properties.

Tax & regulatory notes

Property transfer tax (ITBI) is 2% of the higher of sale price or registered value, payable by the seller. Registration fees at the Registro Público are around 0.25%. The Ley de Intereses Preferenciales (originally Law 3 of 1985 and successor laws, with regular reforms) subsidises interest rates on mortgages for owner-occupied homes within periodically adjusted price thresholds (the threshold sits around USD 120,000 for full preferential and tapers for higher-value homes). MIVIOT (Ministerio de Vivienda y Ordenamiento Territorial) operates the Fondo Solidario de Vivienda and bono solidario down-payment grants for lower-income first-time buyers.

🧮 Worked example

Un préstamo hipotecario de $180,000 al 6.25% en un plazo de 30 años

Loan amount

USD 180,000

Annual interest rate

6.25%

Term

30 years (360 months)

Monthly payment

USD 1,108

Total interest paid

USD 218,985

Total paid (principal + interest)

USD 398,985

❓ FAQ (Panama)

Common questions in Panama.

¿Qué es la Ley de Intereses Preferenciales y cómo funciona?

Under Panama's preferential-interest mortgage law, the State pays a portion of the interest on residential mortgages for owner-occupied first homes within price thresholds (full preferential up to roughly USD 120,000, partial for higher tranches up to a ceiling). The bank quotes you the nominal rate; you pay the reduced effective rate, and the government compensates the bank. This is the main reason headline mortgage rates in Panama look low compared to other Latin American markets.

Can foreigners buy property and get a mortgage in Panama?

Yes — foreigners can own property freehold in Panama with essentially the same rights as nationals, except in border and island zones. Banks like Banco General, Banistmo, BAC and Multibank lend to non-residents, typically requiring 30-40% down payment, life insurance and verifiable foreign income. The preferential-interest subsidy generally requires the property to be your primary residence, so investors in rental property pay full market rates of 7-8%.

Why are 30-year mortgages standard in Panama when they're rare elsewhere in Latin America?

USD legal tender removes FX risk, the Ley Preferencial creates stable government-subsidised demand for long-dated owner-occupied mortgages, and the absence of a domestic monetary policy rate (and thus inflation pass-through) lets banks fund long. Banco General, Banistmo and BAC routinely offer 25-30 year tenors at fixed or capped-floating rates, the longest in Central America.

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