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Mulino Signs Law 481 to Expand Mortgage Interest Subsidy
President José Raúl Mulino sanctioned Law 481, which modifies the preferred interest regime and creates a new mortgage interest subsidy. This measure increases eligibility for housing loans by covering homes valued between 80,000 and 120,000 dollars. Borrowers will benefit from a maximum rate of 4 percent for seven years. The initiative comes into effect in January 2026 and represents a major step in housing subsidy expansion.
Preferred Interest Regime and Regional Subsidy Zones
Law 481 updates the existing preferred interest regime, formerly established under Law 468. The reform introduces regional subsidy zones, which categorize the country to better distribute benefits. Region 1 covers Panama and Panama Oeste, while Region 2 includes Colón and the rest of the provinces. This division allows geographic benefit categories to align subsidies with local housing markets.
Middle-Income Home Access and Social Impact
The mortgage interest subsidy specifically aims to increase middle-income home access. Many families in this segment face difficulty obtaining financing due to high interest rates. With this reform, affordable housing eligibility expands to a broader population. At the same time, the measure supports the construction sector by increasing demand for residential projects.
Economic Benefits of Housing Subsidy Expansion
The expansion of the preferred interest framework stimulates the national economy by creating jobs, boosting investment, and increasing housing supply. By offering predictable financing, the law provides stability for families and developers alike. The construction industry expects higher activity, while communities anticipate social improvements through greater access to homeownership.
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