How to finance property in Costa Rica
Traditional Mortgages
Now Available for Foreigners in Costa Rica
As Costa Rica's real estate market continues to flourish, the range of financing options is expanding as well. Traditional mortgage opportunities are becoming increasingly accessible for foreign buyers.
With a down payment of 35-40%, you may qualify for mortgage financing on single-family homes and condos.
Our team can assist you throughout the process and connect you directly with experienced banking representatives.
For more details, feel free to reach out to us.
Explore additional information below on financing a property in Costa Rica.
There was little option for financing or traditional mortgage type options in Costa Rica (until recently).
Those who have been purchasing property were typically doing so with cash.
Property is traded in US dollars.
Cash sources may include, tapping into the equity from your home in Canada or the US (or other). Or sale proceeds from the sale of your home or other assets. It may be access to savings, investments, or borrowing against your 401K.
From time to time, friends or family will consider purchasing property together, allowing them more leverage and more access to cash flow.
Costa Rica is a country that takes the fight against money laundering very seriously. There are strict laws and policies that require you to prove the origin of your funds when you want to buy property in this beautiful country. You need to confirm that your money is clean legal and traceable. Don't worry, we are here to help you and connect you with an Escrow company for this process.
Seller financing can be a wonderful option for buying a property without paying 100% of the final price upfront or getting a bank mortgage. It means that the seller lends you the money to buy their property, and you pay them back with interest over time. (a mortgage is registered)
Some sellers are flexible and accept interest-only payments or principal and interest payments on different schedules. They may also agree to a balloon payment at the end of the term.
Sellers also benefit as the funds paid, are nonrefundable if the contract obligations are not met.
A formal ‘mortgage’ is written by an attorney in this scenario.
If you are a foreigner who wants to buy land or a dream house in Costa Rica, from time to time, seller financing may be available to be negotiated into the purchase agreement.
Foreigner (or EXPAT) mortgages can be done!
As of 2024, traditional mortgages are available with some of the major lenders in Costa Rica.
It should be noted, the condition of ‘financing’ (in an offer to purchase) is new, and can be a little more difficult to negotiate, as cash has traditionally been the form of trade with real estate in Costa Rica.
If you have a POA (Power of Attorney) signed with your attorney, the mortgage and posession date process can happen completely remotely.
Minimum downpayment is approx. 35-40%.
Contact us direct for contact info to the local banks offering mortgages.
Another option, if you have a more unique request is dealing direct with a BROKER.
Central Capital Solutions, is the expert in mortgage facilitation and streamlining the application process in Costa Rica. Gabriel (originally from Quebec), will guide you through the entire process, from finding the best lender for your needs to closing the deal with confidence and ease.
They work with CR Banks and the countrywide home loan government-backed program, two of the most reputable and reliable ways to borrow in Costa Rica. They will explain to you the pros and cons of each option, including the costs, fees, and legal aspects involved. They will help you compare and contrast the benefits and drawbacks of the options, so you can make an informed decision that suits your budget and goals.
There is an upfront fee of $600 plus tax and a 1.5% fee at closing for this service.
A reminder, that mortgages in Costa Rica are not the same as in Canada or the US. Rates, lender fees, and downpayment requirements are higher.
If you are a homeowner (in Canada) and have questions about how to leverage the equity in your home to purchase property in Costa Rica (or anywhere outside of the country), please contact Tamara or Belinda (Mortgage Brokers in Canada and partners of Bella Mar Realty) by clicking here or visiting their website to learn more about their services.
They can help you find the best financing options for your -out of country- purchase.
