Housing Finance Policy

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    A. Legal and Regulatory Framework

    A.1 Legal and Regulatory Framework
    VariableEnd of 2018End of 2017End of 2016SourcesVar ID
    Basis of the legal system: Civil, Common, Islamic, Other? (Describe)CivilCivilCivil
    CIA World Factbook
    		A.1.1
    Are there specific laws that deal with mortgages? YesYesYes
    Thomson Reuters
    		A.1.2
    Registration/Transfer of titles:A.1.3
    Does the law clearly define different types of property rights?YesYesYes
    Lex Mundi
    		A.1.3.1
     Are property rights easily transferable?YesYesYes
    Lex Mundi
    		A.1.3.2
    Typical number of days needed for the transfer of title22.522.522.5
    Doing Business
    		A.1.3.4
    Can liens be effectively enforced?YesYesYes
    Lex Mundi
    		A.1.4
    Is there specialized legislation covering:A.1.9
    B. Housing Finance Subsidies
    B.1 Subsidies to Housing Finance Institutions
    VariableEnd of 2018End of 2017End of 2016SourcesVar ID
    Is the lending side of the housing finance system subsidized?YesYesYes
    World Bank
    		B.1.2
    Guarantees for mortgage loansYesYesYes
    Inter-American Development Bank
    		B.1.2.2
    OtherYesYesYes
    World Bank
    		B.1.2.3
    B.2 Subsidies to Households
    VariableEnd of 2018End of 2017End of 2016SourcesVar ID
    Are there subsidies to households on housing finance?YesYesYes
    Inter-American Development Bank
    		B.2.1
    Interest rate subsidies by special government fundsYesYesYes
    World Bank
    		B.2.1.1
    Down-payment subsidies YesYesYes
    Inter-American Development Bank
    		B.2.1.3
    Mortgage interest deductibility from income taxYesYesYes
    International Living
    		B.2.1.5
    Reach of subsidies in 2.1.1 to 2.1.4 ?B.2.2
    C. Taxation
    VariableEnd of 2018End of 2017End of 2016SourcesVar ID
    What taxes apply to Residential Real Estate?C.1
    Tax on property (home-owners) YesYesYes
    Global Property Guide
    		C.1.1
    Property transaction taxes (purchase/selling)YesYesYes
    Thomson Reuters
    		C.1.2
    Tax on capital gains on property YesYesYes
    Global Property Guide
    		C.1.5
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    Notes: Preferential Interest Law subsidy: Subsidy of two percentage points off market rate. To be eligible, must satisfy several conditions: (1) Must be first time buyer (2) The property being bought must be new construction (3) The property must be for residential purposes (4) Amount financed must be in range of $35,000-$120,000 after down payment (5) Financing can't be more than 95% of appraised value (6) Must be titled property (7) Loan cannot exceed 15 year term
    Notes: "down payment guarantees that enable families to reduce their down payments from 20 percent to 2 percent" (PROFINCO)
    Notes: "down payment guarantees that enable families to reduce their down payments from 20 percent to 2 percent" (PROFINCO)
    Notes: "down payment guarantees that enable families to reduce their down payments from 20 percent to 2 percent" (PROFINCO)
    Notes: "down payment guarantees that enable families to reduce their down payments from 20 percent to 2 percent" (PROFINCO)
    Notes: "down payment guarantees that enable families to reduce their down payments from 20 percent to 2 percent" (PROFINCO)
    Notes: "down payment guarantees that enable families to reduce their down payments from 20 percent to 2 percent" (PROFINCO)
    Notes: "down payment guarantees that enable families to reduce their down payments from 20 percent to 2 percent" (PROFINCO)
    Notes: "down payment guarantees that enable families to reduce their down payments from 20 percent to 2 percent" (PROFINCO)
    Notes: "down payment guarantees that enable families to reduce their down payments from 20 percent to 2 percent" (PROFINCO)
    Notes: $0-$30,000: 0% $30,000-$50,000: 1.75% $50,000-$75,000: 1.95% >$75,000: 2.10%
    Notes: $0-$30,000: 0% $30,000-$50,000: 1.75% $50,000-$75,000: 1.95% >$75,000: 2.10%
    Notes: $0-$30,000: 0% $30,000-$50,000: 1.75% $50,000-$75,000: 1.95% >$75,000: 2.10%
    Notes: 90-100% is typical depending on the bank
    Notes: Banco General, HSBC Bank Panama
    Notes: For the Preferential Interest Rate Law: The government compensates mortgage lenders through a tax credit equal to the difference between the Panamanian reference rate and the subsidized rates.
    Notes: For the Preferential Interest Rate Law: The government compensates mortgage lenders through a tax credit equal to the difference between the Panamanian reference rate and the subsidized rates.
    Notes: For the Preferential Interest Rate Law: The government compensates mortgage lenders through a tax credit equal to the difference between the Panamanian reference rate and the subsidized rates.
    Notes: For the Preferential Interest Rate Law: The government compensates mortgage lenders through a tax credit equal to the difference between the Panamanian reference rate and the subsidized rates.
    Notes: For the Preferential Interest Rate Law: The government compensates mortgage lenders through a tax credit equal to the difference between the Panamanian reference rate and the subsidized rates.
    Notes: For the Preferential Interest Rate Law: The government compensates mortgage lenders through a tax credit equal to the difference between the Panamanian reference rate and the subsidized rates.
    Notes: For the Preferential Interest Rate Law: The government compensates mortgage lenders through a tax credit equal to the difference between the Panamanian reference rate and the subsidized rates.
    Notes: For the Preferential Interest Rate Law: The government compensates mortgage lenders through a tax credit equal to the difference between the Panamanian reference rate and the subsidized rates.
    Notes: For the Preferential Interest Rate Law: The government compensates mortgage lenders through a tax credit equal to the difference between the Panamanian reference rate and the subsidized rates.
    Notes: Government-owned banks are mostly funded by retail deposits.
    Notes: In 2013, Bancolombia Group acquired HSBC Panama and renamed it as Banistmo.
    Notes: Lender fees range from $363.8-$695.5 Loan Processing: $96.30 - $160.50 Legal Services: $267.50-$535.00 Legal Service fees apply when the bank prepares the contract agreements, notarizes the documents and makes the inscription in the Public Registry.
    Notes: Most common is a monthly mortgage amount of $100-149 with monthly income of $1000-1499
    Notes: No formal LTV cap but individual banks self-impose LTV limits
    Notes: No formal LTV cap but individual banks self-impose LTV limits
    Notes: No formal LTV cap but individual banks self-impose LTV limits
    Notes: Only includes major developers associated with Convivienda
    Notes: Only includes major developers associated with Convivienda
    Notes: Only includes major developers associated with Convivienda
    Notes: Preferential Interest Law subsidy: Subsidy of two percentage points off market rate. To be eligible, must satisfy several conditions: (1) Must be first time buyer (2) The property being bought must be new construction (3) The property must be for residential purposes (4) Amount financed must be in range of $35,000-$120,000 after down payment (5) Financing can't be more than 95% of appraised value (6) Must be titled property (7) Loan cannot exceed 15 year term
    Notes: Preferential Interest Law subsidy: Subsidy of two percentage points off market rate. To be eligible, must satisfy several conditions: (1) Must be first time buyer (2) The property being bought must be new construction (3) The property must be for residential purposes (4) Amount financed must be in range of $35,000-$120,000 after down payment (5) Financing can't be more than 95% of appraised value (6) Must be titled property (7) Loan cannot exceed 15 year term
    Notes: Preferential Interest Law subsidy: Subsidy of two percentage points off market rate. To be eligible, must satisfy several conditions: (1) Must be first time buyer (2) The property being bought must be new construction (3) The property must be for residential purposes (4) Amount financed must be in range of $35,000-$120,000 after down payment (5) Financing can't be more than 95% of appraised value (6) Must be titled property (7) Loan cannot exceed 15 year term
    Notes: Preferential Interest Law subsidy: Subsidy of two percentage points off market rate. To be eligible, must satisfy several conditions: (1) Must be first time buyer (2) The property being bought must be new construction (3) The property must be for residential purposes (4) Amount financed must be in range of $35,000-$120,000 after down payment (5) Financing can't be more than 95% of appraised value (6) Must be titled property (7) Loan cannot exceed 15 year term
    Notes: Preferential Interest Law subsidy: Subsidy of two percentage points off market rate. To be eligible, must satisfy several conditions: (1) Must be first time buyer (2) The property being bought must be new construction (3) The property must be for residential purposes (4) Amount financed must be in range of $35,000-$120,000 after down payment (5) Financing can't be more than 95% of appraised value (6) Must be titled property (7) Loan cannot exceed 15 year term
    Notes: Preferential Interest Law subsidy: Subsidy of two percentage points off market rate. To be eligible, must satisfy several conditions: (1) Must be first time buyer (2) The property being bought must be new construction (3) The property must be for residential purposes (4) Amount financed must be in range of $35,000-$120,000 after down payment (5) Financing can't be more than 95% of appraised value (6) Must be titled property (7) Loan cannot exceed 15 year term
    Notes: Preferential Interest Law subsidy: Subsidy of two percentage points off market rate. To be eligible, must satisfy several conditions: (1) Must be first time buyer (2) The property being bought must be new construction (3) The property must be for residential purposes (4) Amount financed must be in range of $35,000-$120,000 after down payment (5) Financing can't be more than 95% of appraised value (6) Must be titled property (7) Loan cannot exceed 15 year term
    Notes: Preferential Interest Law subsidy: Subsidy of two percentage points off market rate. To be eligible, must satisfy several conditions: (1) Must be first time buyer (2) The property being bought must be new construction (3) The property must be for residential purposes (4) Amount financed must be in range of $35,000-$120,000 after down payment (5) Financing can't be more than 95% of appraised value (6) Must be titled property (7) Loan cannot exceed 15 year term
    Notes: Real estate transfer taxes in Panama are 2% of the higher of either the updated registered value of the property or the price at sale. These are paid by the seller.
    Notes: Securitization of mortgages minimal
    Notes: Self-imposed by banks, this is for houses worth below $45,000, more expensive houses have lower LTVs with 80% being the norm for houses above $120,000 in value
    Notes: Superintendencia de Bancos de Panama
    Notes: Superintendencia de Bancos de Panama
    Notes: Superintendencia de Bancos de Panama
    Notes: Superintendencia de Bancos de Panama
    Notes: Superintendencia de Bancos de Panama
    Notes: Superintendencia de Bancos de Panama
    Notes: Superintendencia de Bancos de Panama
    Notes: Superintendencia de Bancos de Panama
    Notes: Superintendencia de Bancos de Panama
    Notes: Superintendencia de Bancos de Panama
    Notes: Superintendencia de Bancos de Panama
    Notes: Superintendencia de Bancos de Panama
    Notes: Superintendencia de Bancos de Panama
    Notes: Superintendencia de Bancos de Panama
    Notes: Superintendencia de Bancos de Panama
    Notes: Superintendencia de Bancos de Panama
    Notes: Superintendencia de Bancos de Panama
    Notes: Superintendencia de Bancos de Panama
    Notes: Superintendencia de Bancos de Panama
    Notes: The property tax rate ranges from 0% to 0.70% for real property subject to family wealth or main residence benefits.
    Notes: The property tax rate ranges from 0% to 0.70% for real property subject to family wealth or main residence benefits.
    Notes: The property tax rate ranges from 0% to 0.70% for real property subject to family wealth or main residence benefits.
    Notes: Through the Banco Nacional de Panama, the State has set up a guarantee fund to reimburse up to 30 percent of any losses incurred on loans with down payment guarantees (PROFINCO).
    Notes: Through the Banco Nacional de Panama, the State has set up a guarantee fund to reimburse up to 30 percent of any losses incurred on loans with down payment guarantees (PROFINCO).
    Notes: Through the Banco Nacional de Panama, the State has set up a guarantee fund to reimburse up to 30 percent of any losses incurred on loans with down payment guarantees (PROFINCO).
    Notes: Through the Banco Nacional de Panama, the State has set up a guarantee fund to reimburse up to 30 percent of any losses incurred on loans with down payment guarantees (PROFINCO).
    Notes: Through the Banco Nacional de Panama, the State has set up a guarantee fund to reimburse up to 30 percent of any losses incurred on loans with down payment guarantees (PROFINCO).
    Notes: Through the Banco Nacional de Panama, the State has set up a guarantee fund to reimburse up to 30 percent of any losses incurred on loans with down payment guarantees (PROFINCO).
    Notes: Through the Banco Nacional de Panama, the State has set up a guarantee fund to reimburse up to 30 percent of any losses incurred on loans with down payment guarantees (PROFINCO).
    Notes: Through the Banco Nacional de Panama, the State has set up a guarantee fund to reimburse up to 30 percent of any losses incurred on loans with down payment guarantees (PROFINCO).
    Notes: Through the Banco Nacional de Panama, the State has set up a guarantee fund to reimburse up to 30 percent of any losses incurred on loans with down payment guarantees (PROFINCO).
    Notes: Total number of house sales
    Notes: Total number of house sales