Costa
Rica – Mortgages-Private banks
The
following financial institutions offer Costa Rican mortgages:
There are
different types of Costa Rica mortgages offered by private sector banks in
Costa Rica which you should take into account before you decide on mortgaging.
Certain banks will willingly lend in dollars where as there are others who
offer mortgages in both the currencies. First you should analyze your income,
your usual expenses, your job security, and the monthly payment which you have
to pay in the near future and then decide on a Costa Rica mortgage.
Mostly
the Costa Rican mortgage by and far is available to Costa Rica residents only.
BAC San
Jose- In Costa Rica most of the mortgages are offered in local currencies but
BAC San Jose is one of the banks that also offer mortgages in US Dollars, with
a duration of 15 to 29 years. The minimum financed amount should be US$30,000
and the maximum amount is US$400,000. The loan helps a person to buy an
existing home, or construct something on a self-owned property which has to be
free of any liability. If your estimate ranges between US$30,000-US$150,000
then 80% of it can be financed. If your estimate is above US$150,000 then 70%
of it can be financed. For improvements, repairs, additions which are called free
funding, the amount is around US$30,000-US$300,000 of which a maximum of
70% can be financed. With a minimum of 7% the bank adds the quarterly Libor tax
plus 5.5 percentage points.
If the
estimate ranges from US$300,000 to US$400,000 then 60% of the amount is
financed by the bank. The quarterly Libor rate in addition to 5.5 percentage
points and minimum 7.5% rate are added to the mortgage of an existing house. If
a transfer is not intended then the balloon amount with the legal loan fees
varying between 5.5% and if the transfer is intended then the fees rises to
8.5%. For further information you can search BAC San Jose.
Lafise-
this bank like BAC San Jose offers to finance in dollars but for the whole
period of 15-17 years they ask for a fixed rate of 9.5%. The maximum loan
amount by the bank is US$350,000 and in addition to the real estate commission
the total fees approximates around 8%. The loans which are offered in the
currency of Costa Rica the interest rate offered are 7.5%. The fees is 8% for
running times of 10, 12, 15 years. The loan is offered on a variety of purposes
such as purchasing of a new home, construction on existing property, property
and building, remodeling, extending and even for repairing. For more
information you can look up Lafise.
Scotiabank-
This bank in Costa Rica offers loans in colones as well as in dollars with many
options and running times of 15 years and go up to 30 years. The interest
charged depends on the currency and the convenience of the client. The bank
also offers a program known as ScotiaMix (a combined loan of dollar and
colones) in addition with the traditional currency loans. The amounts of loan
are proportional to the needs and the returning capability of the aspirant
borrowers.
The loan
is differentiated into two parts, the first payable in dollars and the second
in colones. The bank finances up to a maximum of 85% of the estimate, which is
determined by the property value and the client’s financial capacity.
In normal
circumstances the interest rates for loans issued in colones range between
20-21.5% and in dollars between 7.5-9.75%. The term is dictated according to
bank commission standards.
Except
for special promotional loans, running 6 months or a year, the interest rates
for the loans generally fluctuate. Usually the fee for colones is 6.32% and for
dollars it is 7.5%. For further information visit Scotiabank
Interfin - The base borrowing rate for colones is plus 1% in the
first year, 3% from the second year and 5% from the third year. The minimum
loan amount is c13 million and the maximum is c22 million for 15 and 20 years
terms. Up to 80% of the estimated value is financed by the bank.
Maximum
of 30% of the net earning of the family is the payment-earning relation. The
legal fees for a mortgage contract are 1.25% and for a buyer/seller contract is
0.62%. When the project exceeds the former limits, the interest rate charged
becomes 19% attuned to the base borrowing rate of plus 6%. For more information
visit Interfin
Cuscatlan – offers mortgages with running time period for a maximum of 20
years on colones as well as dollars. The rate of interest for colones is TB
plus 10.75% from the first year itself and the minimum rate being 25%. From the
first year the Libor rate of 6 months plus 5.5% applies is charged as interest
for dollar (the minimum rate being 7.5%). To purchase a new home, building on
own property, property and building the maximum amount anybody can avail is
US$250,000 and the minimum amount financed by the bank being US$30,000. The
balloon costs and the legal charges for the loan amount of US$ 100,000
approximates to US$8,478. Cuscatlan present their clients a unique mortgage
warranty trust fund where you could save up to US$2,625 against a mortgage
amount of US$100,000 unlike the traditional mortgage. For further details look
up Cuscatlan
Banex – with its credit line in colones and dollars provides a
first mortgage warranty. For the first and the following years up to 25 years,
the interest rate for dollars is Libor plus 5.5%. And in case of colones the
duration goes up to 30 years with rate of interest being base borrowing rate
plus 5.5%. The minimum amount
financed by the bank is US$ 35,000 or c10 million for Costa Rica currency. For
further details check out Banex
Most
banks will take the following requisites into consideration:
- The
client’s true financial position will be taken into account to calculate the
loan amount and the duration/the time period.
- They
might refer to other banks or business sector to know whether you are eligible
for a loan.
- The
bank will see whether you already have any financial liabilities which will
make them aware of the possibilities of a delay in your monthly repayment.
-
The
banks will carry out a survey on the property to be bought or built
-
The rates
and information is valid as of January 15th 2005.
