While I can remember that low income housing started at $25,000 when I first got here, the cost of construction has gone up significantly and the government has reacted to this by increasing the amount of money you can borrow at a very low interest rate in order to continue its program of making housing affordable. We have seen our first project in Boquete called Mystic Garden successfully develop into small community of homes where as a Panamanian who can show proof of employment, even as a average worker, you can get into a $80,000 home for little money down and $201 every two weeks. Here is a series of articles on low income and middle income affordable housing in Panama.
An amendment has been made to Act 3 of March 1985, which establishes a preferential interest rate system on mortgages, increasing the limit of the first band from $35,000 to $40,000. The Bill No. 567, amending an article of Act 3 of 1985, which establishes a preferential interest in certain mortgage loans and modifies the first band for preferential interest loans, from $35,000 to $ 40,000, was approved on its third reading by the plenary of the National Assembly, said the Minister of Economy and Finance, Frank De Lima.
Panama: Preferential Interest Rate Law Changes
March 2012
The National Assembly has given the final approval to increase ceiling rate for preferential interest to $120,000, which will have a direct impact on the housing market.
The plenary of the legislature approved on third reading bill no. 241, by which the ceiling for preferential interest rates has been increased to $120,000 reported Capital.com.pa.
Boost to Middle Class Housing in Panama
January 2012
President Martinelli announced that the maximum value for a property to be considered for the preferential interest rate will be increased to $120,000.
The measure must be passed in the National Assembly by amending the act, which is expected to happened very quickly.
A current limit of $80,000 has been established as the maximum value of homes that can be financed under the law, which allegedly has led to low-quality housing solutions being built to keep costs within that range.