In the intricate process of acquiring a new home, numerous questions arise, and the abundance of information can be overwhelming. From salary prerequisites to discount deadlines, there are various details to consider. In a recent podcast, we delved into the five most common queries encountered by those aspiring to enter the realm of real estate in Panama. Here are the answers and some useful tips to steer you on the path to realizing your dream of owning your own home:
- How much money do I need to earn monthly to apply for a new home via mortgage?
Answer: Relying solely on the minimum wage is insufficient. The crucial factor is understanding your actual payment capacity, contingent on your personal expenses and existing debts. Conduct a sincere evaluation of your finances to ascertain your true purchasing capacity.
- How long do I need to work before applying for a house?
Answer: Generally, at least 6 months of work is needed to register your Social Security Fund (CSS Panama) file or payment stub to initiate the purchase process. However, this duration may vary based on your specific occupation and the requirements of the chosen bank.
- How much is the down payment for a house in Panama?
Answer: The initial payment (or down payment) varies depending on your employment status. For salaried employees, this payment typically ranges between 2% and 5% of the total sales value of the property. Freelancers or entrepreneurs might encounter a higher percentage, subject to various factors specific to their situation.
Example for an employee: If your mortgage loan is $100,000, the initial payment would be between $2,000 (2%) to $5,000 (5%).
- How much should I pay in legal fees? / What are legal fees?
Answer: Legal expenses generally constitute around 2% to 2.5% of the total sales value. These encompass the costs related to legal services required during the property acquisition process to ensure the legality and accurate documentation (deeds, notary expenses, fees). Nevertheless, this figure may vary depending on the construction company and the bank. We advise you to establish, from the start of your purchasing process, who is responsible for covering these expenses to avoid misunderstandings.
- When should I start paying for my house (mortgage)?
Answer: Typically, the automatic home payment or discount commences shortly before or at the time of the process completion or when you finally get your home keys. However, this period may vary based on the policies of each bank. Some state banks may initiate deductions approximately 15 days before delivery.
Every step in the process of purchasing a new home in Panama has its nuances and specific requirements. Acquiring a comprehensive understanding of the details and recognizing your true financial capabilities will better equip you for this thrilling journey towards owning your new home. If you require more information or personalized advice, do not hesitate to reach out. We are here to assist you at every stage towards realizing your dream of home ownership.
