How a Home Mortgage Loan Works in Costa Rica

A mortgage loan is a loan to purchase or build a home, secured by a mortgage on the property. Exact requirements and conditions (rate, term, financing percentage) vary depending on the bank or entity — public, private, or cooperative — but there are common elements to practically all entities regulated by SUGEF.

**General requirements that almost all entities request:**

• Valid cédula de identidad (or DIMEX).
• Proof of repayment capacity: employer salary certificate (position, length of service, salary) or, if you are self-employed, financial statements and tax returns.
• Recent proof of income (latest pay stubs or bank statements).
• A credit report from the Central de Información Crediticia of SUGEF — the bank accesses it with your authorization; having no delinquency or major negative history there is key to getting the loan approved.
• An **avalúo** (appraisal) of the property, conducted by an authorized appraiser registered with CFIA (Colegio Federado de Ingenieros y Arquitectos) — the appraisal, not the sale price, is what determines how much the bank will lend.

**How much they finance**: as a general rule of thumb, for a first home, many banks finance up to 80% of the property's appraised value (the rest is the down payment provided by the buyer) — but this percentage varies depending on the entity, property type, and applicant profile, so it is not a fixed rule.

**The collateral**: the loan is backed by a mortgage on the property (the one being purchased, or an additional property if necessary), which is registered in the **Registro Nacional**. If the loan is default, the bank can foreclose on the mortgage through judicial proceedings to recover the balance.

**Alternatives depending on your profile**:

• If you qualify for the housing subsidy from BANHVI (see separate fact sheet on the housing subsidy), the subsidy can be combined with a loan for the remaining amount.
• Institutions such as the CCSS, the INS, or savings and credit cooperatives also offer mortgage loans to their members, sometimes with conditions that differ from traditional commercial banking.

Note: since interest rates, maximum terms, and financing percentages change depending on the bank and market conditions, the most reliable approach is to compare directly with at least 2-3 entities before deciding — there is no single "official rate" for mortgage loans in Costa Rica.