Mortgage Loan Challenges in Panama

Panama City — Unlike others, Palacios meets all the requirements to apply for a mortgage. However, for Elvira Palacios, the scenario was different. Although she initially faced multiple setbacks and bank rejections due to her credit history not showing the liquidation of two credit cards, she was finally able to get the pre-approval she needed. This request was supported by Rodolfo Ángulo Valencia from Colón, who believes that the requirements of banks and developers should adapt to the population's capacity, as a salary that most Panamanians do not earn is currently demanded, limiting their access to mortgage loans. He stated that although he is looking for something simple, "a house in a safe neighborhood with all basic services," his financial capacity, as a retiree, has been his main impediment. "I hope they finally approve my house for me; a bank gave me the option I wanted because they had been closing doors on me since last year, and I have already paid off my credit cards," he affirmed. He suggests that the relevant authorities reduce the required family income range and build projects close to the city so that more young people can access their first home. Owning a home has become a frustrated dream for some Panamanians due to multiple factors: the first is that they do not meet the requirements of banking entities to obtain a mortgage loan; the second is that the projects do not adjust to their needs. She shared with Panamá América that it has been "very difficult" for her and her partner to find properties with these characteristics, since most of those they are "applicable for" are located in East or West Panama, areas where they do not want to live due to insecurity and traffic; however, they will have to settle for something to finally have their own space. This is the case of Angeline García, a young woman who for a year and a half has been attending the various real estate fairs held in the country in search of her dreamed first home: an affordable house in the city center, a "non-negotiable" that has prevented her from succeeding despite the wide offer, because her family income is below what is requested. She recalled that a year ago she was told she "could not apply" because her references showed she was a delinquent, even though she had already fulfilled her obligation, giving her no alternative but to wait until they were cleared. Unlike García, young Arleen Arana, who currently lives in the corregimiento of Curundú, has no problem moving to the eastern area of the country, as long as it does not exceed the limits of December 24; she is also very flexible with the type of property, it can be a house or an apartment, but she also faces obstacles: family income and job stability.