The Housing Finance System

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    A. Primary Housing Finance Market

    A.1 Industry Structure and Performance
    VariableEnd of 2018End of 2017End of 2016SourcesVar ID
    Number of firms originating and funding mortgage loans374038
    SBP
    		A.1.1
    Types of originating lenders/market share:A.1.2
    Universal/ commercial banks100% of total  
    Research
    		A.1.2.1
    Identify the 3 largest loan originating lendersBanco General S.A., Banistmo S.A., Caja de AhorrosBanco General S.A., Banistmo S.A., Caja de AhorrosBanco General S.A., Banistmo S.A., Caja de Ahorros
    SBP
    		A.1.3
    Are there (quasi) public mortgage lenders:YesYesYes
    Research
    		A.1.4
    Universal/ commercial banksYesYesYes
    Research
    		A.1.4.1
    Other depository institutions (savings and loans/mutual savings and credit institutions)NoNoNo
    Research
    		A.1.4.2
    Non-depository financial institutions specialized in housing financeNoNoNo
    Research
    		A.1.4.3
    General non-depository financial institutionsNoNoNo
    Research
    		A.1.4.4
    Others (e.g. insurance co, pension funds, labor tax funds)NoNoNo
    Research
    		A.1.4.5
    Typical lending spreads for mortgages 3.09%3.13%
    Research
    		A.1.5
    Level of Non-Performing Mortgage Loans (90 days or more past due):A.1.6
    as a % of outstanding loan amount  4.08%A.1.6.2
    Average 1997-2007 A.1.7
    A.2 Size of Mortgage Finance Sector
    VariableEnd of 2018End of 2017End of 2016SourcesVar ID
    Total amount of home mortgage loans outstanding at the end of year in millions of USD:14,923.01 USD (millions)14,083.13 USD (millions)12,794.05 USD (millions)
    SBP
    		A.2.1
    Total amount of home mortgage loans outstanding at the end of year as % of GDP (current)22.6%22.77%22.13%
    SBP
    		A.2.1.1
    and as % of all credits outstanding27.58%27.32%26.31%
    SBP
    		A.2.1.2
    Total amount of home mortgages made in calendar year in millions of USD  2,807.06 USD (millions)
    SBP
    		A.2.3
    and as % of GDP (current)   4.85%
    SBP
    		A.2.3.1
    and as % of all credits originated in calender year  10.66%
    Research
    		A.2.3.2
    A.3 Housing Finance Products
    VariableEnd of 2018End of 2017End of 2016SourcesVar ID
    Mortgage products as % of all mortgages (approx.) in local currency:A.3.1
    Most prevalent type of foreign currency mortgage used:A.3.3
    Most frequent interest rates on fully amortizing:A.3.4
    Typical lender fees associated with mortgage origination: A.3.6
    Fixed in amount   529.65 USD A.3.6.1
    Typical third party fees associated with mortgage origination:A.3.7
    Loan-to-Value (LTV) on first mortgage: A.3.8
    Maximum LTV989898
    Caja de Ahorros
    		A.3.8.1
    Typical LTV at origination909090
    IMF
    		A.3.8.2
    Maximum term over which pmt is calculated? 30 years30 years30 years
    Caja de Ahorros and Banco General
    		A.3.9
    Mortgage pmt-to-income ratio A.3.10
    Typical pmt-to-income ratio (HH income)  10%
    INEC
    		A.3.10.3
    A.4 Lending and Servicing Process
    VariableEnd of 2018End of 2017End of 2016SourcesVar ID
    Does the mortgage industry use standard principles/guidelines for underwriting?YesYesYes
    Research
    		A.4.1
    Which institutions define underwriting rules? A.4.2
    Central Bank/Ministry of FinanceNoNoNo
    Research
    		A.4.2.1
    Secondary market facilityNoNoNo
    Research
    		A.4.2.2
    Major LenderNoNoNo
    Research
    		A.4.2.3
    OtherYesYesYes
    Research
    		A.4.2.4
    A.5 Credit Risk Assessment
    VariableEnd of 2018End of 2017End of 2016SourcesVar ID
    Do credit bureaus exist? YesYesYes
    Western Hemisphere Credit, Loan Reporting Initiative
    		A.5.2
    Are there legal/regulatory constraints to gaining access to credit information?YesYesYes
    Western Hemisphere Credit, Loan Reporting Initiative
    		A.5.2.1
    B. Funding Sources for Mortgages and the Secondary Mortgage Market
    VariableEnd of 2018End of 2017End of 2016SourcesVar ID
    What are the main funding sources for mortgages?B.1
    Retail funding (deposits/other)primaryprimaryprimary
    Inter-American Development Bank
    		B.1.1
    Wholesale funding: loans from other banks or corporations  Non-applicable
     
    		B.1.2
    Funding through mortgage bonds   Non-applicable
     
    		B.1.3
    Funding through securitization of mortgagessecondarysecondarysecondary
    Inter-American Development Bank
    		B.1.4
    What % of Residential Mortgage Backed Securities is issued by centralized conduit or liquidity facility? 0%0%0%
    Research
    		B.2
    C. Housing Microfinance
    VariableEnd of 2018End of 2017End of 2016SourcesVar ID
    Are non-collateralized housing micro-finance loans offered? YesYesYes
    Research
    		C.1
    Types of lenders operating in the housing micro-finance (HMF) sector:C.2
    Commercial banksYesYesYes
    REDPAMIF
    		C.2.1
    Level of NPLs (>90 days past due) in HMFC.4
    as a % of outstanding loan amount  3.6%
    REDPAMIF
    		C.4.2
    back to top | Country Data:
    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