Buying property in Costa Rica is a dream for many foreign families seeking the pura vida lifestyle. But when it comes to financing that dream, many expats hit a wall of confusion. Can foreigners get mortgages in Costa Rica? What are the interest rates? How does the process compare to the US or Canada?
By: Catherine Palacios
Financial Advisor
If you’re considering purchasing real estate in Costa Rica, understanding your mortgage options is crucial. This comprehensive guide breaks down everything US buyers need to know about financing property in paradise.
Can Foreigners Get Mortgages in Costa Rica?
The short answer is yes—but the process differs significantly from what you’re used to in the United States or Canada.
Costa Rican banks do offer mortgages to foreign buyers, but approval requirements are stricter than for residents. You’ll need to demonstrate strong financial standing, provide extensive documentation, and be prepared for higher interest rates compared to US/CAD mortgages.
That said, thousands of Americans successfully finance Costa Rican properties every year. With the right preparation and guidance, you can too.
Costa Rica vs US/CAD Mortgages: Key Differences
Down Payment Requirements
In the US/CAD, you might secure a mortgage with as little as 5-10% down. In Costa Rica, expect to put down 30-50% of the property value. Non-residents typically face the higher end of this range.
Interest Rates
US/CAD mortgage rates hover around 6-7% in 2025. Costa Rican rates range from 8-11% depending on the bank, your residency status, and loan terms. While higher, these rates reflect the local market and risk assessment.
Loan Terms
US/CAD mortgages commonly extend to 30 years. Costa Rican mortgages typically max out at 15-25 years, with some banks offering up to 25 years for exceptional borrowers.
Currency Options
You can often choose between colones (CRC) or US dollars (USD) for your mortgage. Dollar loans typically offer slightly better rates and appeal to expats earning in USD.
Processing Time
US/CAD mortgages close in 30-45 days. Costa Rican mortgages take 30-90 days due to more extensive underwriting and legal requirements.
Which Costa Rican Banks Offer Mortgages to Foreigners?
Not all banks in Costa Rica actively lend to non-residents. Here are your best options:
BAC San José
One of the most expat-friendly private banks with English-speaking loan officers and competitive rates for foreign buyers.
Davibank Costa Rica
A recently integrated bank positioned between two strong banks. Previously, Scotiabank merged with Davivienda, and it offers financing to U.S., Canadian, and U.K. clients. On the corporate side, it is well known for providing corporate financing.
BCT
A respected Costa Rican private bank known for its personalized approach and strong financial advisory services.
Their customer service team provides dedicated support to help newcomers navigate banking processes with confidence.
Lafise
A well-established private bank in Central America offering specialized support for foreigners in Costa Rica, with experience in international buyer processes and personalized, English-friendly customer service
BCR (Banco de Costa Rica)
The largest public bank offers mortgages to foreigners but expect lengthy processing times and strict documentation requirements.
Required Documents for Costa Rica Mortgage Applications
Be prepared with comprehensive financial documentation:
Personal Identification:
- Valid passport
- Proof of legal entry to Costa Rica
- Residency card (if applicable)
Financial Documentation:
- Last 3 years of US tax returns
- Last 6 months of bank statements (all accounts)
- Employment verification letter or business financial statements
- Credit report from the US
- Proof of income (pay stubs, investment income statements)
Property Documentation:
- Purchase agreement or reservation contract
- Property appraisal (arranged by the bank)
- Legal title study (estudio registral)
- Cadastral plan and property survey
Additional Requirements:
- Two Costa Rican references (personal or professional)
- Down payment verification (proof of available funds)
- Debt-to-income ratio documentation
The Costa Rica Mortgage Process: Step-by-Step
Step 1: Pre-Qualification (Week 1)
Get pre-qualified with Done Deal CR using your preliminary financial information, allowing you to search for homes with a realistic budget.
We provide a benchmark comparison of all available options, first filtering by interest rates and general conditions, and then by the credit policies that best match your financial profile.
Step 2: Property Selection and Reservation (Week 2 )
Find your property and sign a reservation agreement. This typically requires a deposit of 5-10% of the purchase price to take the property off the market while securing financing.
Step 3: Formal Application Submission (Week 3)
Submit the complete documentation package to your selected bank. The bank will verify all documents, order the property appraisal, and conduct a legal title review. Done Deal CR will provide a checklist to ensure your file is complete..
Step 4: Underwriting and Due Diligence (Week 4-5)
The bank’s underwriting team reviews your application thoroughly. They’ll verify income, assess property value, and conduct legal due diligence on the title. This is the longest phase—patience is essential.
Step 5: Approval and Loan Terms (Week 6)
If approved, you’ll receive a formal loan offer with interest rate, term, and conditions. Review carefully and negotiate if possible.
Step 6: Signing and Closing (Week 7 )
Sign mortgage documents before a notary public. The bank disburses funds directly to the seller. You receive the property title with the mortgage lien registered.
Timeline Goal with Done Deal CR: 6 Weeks
At Done Deal CR, we help ensure that your process is smooth and not burdensome by implementing a weekly workflow and providing continuous support throughout every stage. We have designed a clear step-by-step approach to ensure the process does not extend beyond six weeks, where proper document organization and your active collaboration are key to success.
Understanding Costa Rica Mortgage Costs
Beyond the down payment, budget for these additional expenses:
Closing Costs (3-5% of property value):
- Legal fees (attorney and notary): 1-1.5%
- Transfer tax: 1.5%
- Title registration: 0.5-1%
- Appraisal fee: $300-$1500
- Bank processing fees: 1-1.5%
Ongoing Costs:
- Property tax: 0.25% annually
- Homeowners insurance: 0.3-0.8% annually
- HOA fees: Varies by property
- Mortgage life insurance: Often required by lenders
Mortgage Alternatives for US and Canadian Buyers in Costa Rica
If traditional Costa Rican mortgages don’t fit your situation, consider these alternatives:
Home Equity Line of Credit (HELOC)
Tap equity from your US property for lower rates (currently 7-9%) and familiar lending processes. You maintain US-based financing while buying abroad.
Developer Financing
Some Costa Rican developers offer owner financing with more flexible terms. Rates vary but can be competitive with bank mortgages. Typically shorter terms (5-10 years) with balloon payments.
Cash-Out Refinance
Refinance your US/ CAD property to pull cash for your Costa Rica purchase. Allows you to buy outright and avoid Costa Rican mortgage complexities.
Personal Loans or Portfolio Loans
For smaller property purchases or supplementing your down payment, some US lenders offer personal loans for international real estate.
Tax Implications of Costa Rica Mortgages for US Citizens
As a US taxpayer, you need to understand the tax treatment of your Costa Rican mortgage:
Mortgage Interest Deduction:
Costa Rican mortgage interest is not deductible on US tax returns if the property is a vacation home or investment property. If it’s your primary residence (you live there more than half the year), you may qualify for deductions under IRS rules.
FBAR Reporting:
If your Costa Rican bank accounts exceed $10,000 at any point, you must file FBAR (Foreign Bank Account Report) annually.
Property Income:
If you rent your Costa Rican property, report rental income on US tax returns. You may also owe Costa Rican income tax depending on rental income levels.
Always consult with a tax advisor experienced in US-Costa Rica tax treaties to optimize your situation.
Top Mortgage Mistakes Foreign Buyers Should Avoid
Mistake #1: Waiting Until They Find Property
Starting the mortgage process after finding your dream property creates unnecessary stress. Begin pre-qualification before house hunting.
Mistake #2: Assuming US or CAD Credit Scores Matter
While some banks review US or Canada credit reports, Costa Rican lenders focus more on income verification and asset documentation. Your 800 FICO score helps, but isn’t the deciding factor.
Mistake #3: Underestimating Processing Time
Budgeting only 30-60 days for mortgage approval leads to frustration. Factor in 60-90 days for realistic planning.
Mistake #4: Not Comparing Multiple Banks
Interest rates and terms vary significantly between lenders. Shopping around can save you thousands of dollars over the loan term.
Mistake #5: Overlooking Total Costs
Focusing only on the mortgage payment while ignoring closing costs, insurance, and ongoing expenses creates budget surprises.
How Done Deal CR Streamlines Your Mortgage Process
At Done Deal CR, we’ve guided hundreds of foreign buyers through Costa Rican mortgage financing. With over 20 years of experience in Costa Rica’s mortgage market, we understand how the internal lending process works—allowing us to stay one step ahead and identify potential red flags before they affect you. Our all-in-one approach includes:
Bank Comparison and Negotiation – We analyze multiple lenders to find your best rates and terms, then negotiate on your behalf.
Document Preparation – We prepare and organize all required documentation with proper translations and notarizations.
Application Management – We submit applications, track progress, and communicate with banks throughout underwriting.
Legal Coordination – We work with trusted attorneys to ensure clean title transfer and proper lien registration.
Closing Support – We attend signings with bilingual support and verify all documentation accuracy.
From pre-qualification to receiving your property keys, we handle the complexity while you focus on planning your Costa Rican life.
