The law was ingeniously crafted to provide a preferential interest rate, notably lower than the prevailing market rate, specifically for the first 15 years of the mortgage. The goal? To ensure financial accessibility and foster an equitable path to homeownership for citizens and residents alike. The key tenets of the mortgage loan shielded by Law 3 are:

• Competitive Interest Rate: Securing a rate that’s feasibly manageable, promoting inclusivity in homeownership.
• Substantial Financing: Enabling acquisition through financing up to 98% of the selling price, bridging financial gaps effectively.
• Insurance Options: Provision to opt for collective life and fire insurance plans for residential mortgage portfolios, safeguarding the future against unforeseen circumstances.

Ensuring Eligibility: A Walkthrough

Navigating through the process requires adherence to specific eligibility criteria and documentation. Here’s a generalized framework for aspiring homeowners under two primary categories:

For Salaried Individuals:

• Age & Stability: Legal adulthood and a stable employment history of at least 2 years upon housing delivery.
• Documentation: Valid identification, employment letter, payment proof or payroll slip, and an APC authorization signature.
• Property Info: Proforma detailing housing information or purchase and sale contract, plus housing appraisal.

For Independent Professionals:

• Identification: Relevant and current identification documentation.
• Financial Health: The last two income tax returns, receipt acknowledgments, tax and educational insurance payment receipts, and tax clearance.
• Professional Assurance: Two commercial references, CPA letter with six months of account movements, and financial statements.

The July 2023 Milestone

Fast-forward to July 11, 2023. The Cabinet Council has authorized the Minister of Housing and Territorial Planning (Miviot) to introduce a legislative project before the National Assembly. This endeavor proposes a regimen of preferential interests on mortgage loans and enacts other relevant provisions.

The project delineates full coverage of preferential interests for homes valued up to B/.45,000, while also encapsulating interest segments for homes and apartments valued between B/.45,000 and B/.150,000 at the time of financing.

Slated to remain active until December 2025, the project leaves room for the new government to reevaluate, potentially extending, and reactivating the law, either under the same terms or with necessary modifications.

Winds of Change in Homeownership

This milestone, marking a pivotal era in Panama’s real estate and financial landscape, stands as a testament to the government’s commitment to dismantling financial barriers and making homeownership more than a distant dream for many. The initiative not only catalyzes the economic momentum by invigorating the real estate sector but also engenders a framework where financial empowerment and stability are not merely relegated to the affluent.