Mortgages and property financing in Costa Rica: the end of cash-only purchases?
For years, property in Costa Rica was bought almost exclusively in cash. That is changing: Costa Rican banks have expanded dollar loans for foreigners, and US style fixed-rate mortgages have entered the market. Options for European buyers are still narrower, so it pays to know the reality and the alternatives.
How purchases were financed until now
Most transactions were completed in cash, through private lending or developer financing. Local banks applied strict requirements to non-residents, short terms and variable rates, and approvals took a long time.
What Costa Rican banks offer today
According to Costa Rican law firms, banks have expanded their mortgage programs to foreign buyers, especially from the USA and Canada. These are dollar loans secured by Costa Rican property under SUGEF supervision.
The process usually has five steps: pre-qualification, proof of income and source of funds, appraisal by a bank appraiser, legal title review, and signing the loan and mortgage deed before a notary, which is then registered.
US style mortgages
The newer products are underwritten on US or other foreign income. The terms described as of November 2025 are in the table. These are market offers, not guaranteed terms, and they may change.
| Parameter | Typical value (11/2025) |
|---|---|
| Term | up to 30 years |
| Interest rate | fixed, roughly 8 to 9% per year |
| Loan to value (LTV) | up to 50% |
| Loan amount | USD 150,000 to 2,000,000 |
| Underwriting | based on foreign income, not local credit history |
| Eligible | mainly US citizens and residents |
What it means for buyers from the USA, Canada and Europe
For US borrowers, financing has become a realistic option. Canadian and European buyers should check eligibility case by case and plan for at least 50% equity. Common alternatives are home-country financing, such as a loan secured by other property, or a developer payment plan for projects under construction.
With developer payment plans, tie payments to verified construction milestones and hold them in escrow. A dollar loan also carries currency risk if your income is in euros or Canadian dollars.
- Budget total costs, including about 5% for transfer and legal services.
- Compare rate, fees and insurance required by the lender.
- Check whether the lender requires a Costa Rican company or personal ownership.
- Factor in currency risk and dollar rental income.
How we help
We are not a bank or a loan broker and we do not arrange loans. We help you compare financing options for a chosen property, connect you with an independent Costa Rican attorney and make sure the property can pass a bank appraisal and title review.
We support buyers from the USA and Canada with the same turnkey service as our European clients, from selection to handover.
General information only, not legal or tax advice. Consult a Costa Rican lawyer before deciding.