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Would like to know from any members or the mortgage professionals on the site if there is age discrimination in applying for mortgages. Basically my question is if you use local private banks , will they approve mortgages for clients 65 and older . Is this the same with international lenders ?
I have been researching the mortgage process in CR as I tried helping my mother 2 years ago obtain financing and peronally visited and applied with Cuscatlan, Improsa , Scotia Bank, Banex, Banco Nacional, and others nad came to the conclusion they didnt approve her on age. Her income is fixed retirement income and her debt ratios were below 20%. Maybe things have changed since .
First of all I do NOT know the answer to your question however, with so many more BIG banks here now, the mortgage market has to become more competitive which will hopefully be good for you.
PS. ‘Banex’ no longer exists in Costa Rica, it is now HSBC – one of the largest banking organizations on planet earth, Interfin was acquired by ScotiaBank and I believe Cuscatlan was acquired by CitiBank no?.
Scot Oliver – Founder
WeLoveCostaRica.comWhen we were researching mortgage options a year and a half ago, we did run into a couple of lenders whose basic required qualifications included the primary borrower being younger than about 64 or so.
Yes, that is correct. I believe Banc Uno is also aquired by Citibank. Possibly my question can be taken 2 ways. Are loans to residents treated differently than loans to , say non-resident applicants. Are there underwriting differences ? In my mother’s case , she applied as a resident although her retirement income came from the US.
Most banks will NOT consider mortgages for NON-residents although it is slowly changing. Many banks will NOT consider mortgages for property at the beach …
Costa Rica mortgages are VERY expensive anyway compared to what’s available in the USA and I have repeatedly recommended to my clients that they do whatever they can do to get financing ‘back home’ rather than here because you’ll save a fortune.
Scott Oliver – Founder
WeLoveCostaRica.comYes the mortgages are very expensive here in costs / fees , rates. There are however several local lenders that offer up to 80% financing on residential homes / condos and 70% on lot loans to Non -resident Americans / Canadiens . I know of 5 lenders offhand. But you are correct , the fees are much higher than in the states, but they may be the only option for some buyers .
If you look at the drop in property values in California and Florida , some buyers from those regions may not have the equity they thought they would have or may even be upside down if they used high loan to value lending recently.
The problem with these local banks is that it is difficult to get answers to questions from them unless you have the inside person’s name that is in charge of approving or declining such loans. I have yet had anyone tell me if loans to 65 year old non-residents are considered or not.
I’ve had two mortgages with Banco Cuscatlan. Each one required mortgage insurance from INS, the national insurance institute. By that I mean that if I were to die, the mortgage would be paid for by INS and the property would go to my beneficiary. For my most recent one, INS required a medical exam. I’m 39 years old, so I don’t know if there is an age requirement or not. Perhaps the insurance bit is a law and the age stipulation, if there is one, is something within INS and not the bank. I don’t know for sure.
As for being expensive, mine is in USD at 7% first year, 8% years 2-5 and 3 point something percent over the 6-month LIBOR after that, something that would work out to be around 9% if it were to be applied today. 25 year term, 2% commission. Borrowed 80% against the appraised value – done by the bank’s appraiser.
I really like it. Consider the fact that the colon has been holding steady against the USD and the local inflation is around 9%.
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