--- title: Extending Preferential Interest Benefits for First-Time Homebuyers in Panama description: Owning a home is a dream for many individuals, and in Panama, the government is taking significant steps to make this dream more accessible. image: https://www.residepanama.com/hubfs/Extending%20Preferential%20Interest%20Benefits%20for%20First-Time%20Homebuyers%20in%20Panama.jpg --- [Skip to content](https://www.residepanama.com/en/reside-panama-blog/extending-preferential-interest-benefits-for-first-time-homebuyers-in-panama#main-content) ![Untitled design (23)](https://www.residepanama.com/hs-fs/hubfs/Untitled%20design%20(23).png?width=600&height=240&name=Untitled%20design%20(23).png) ![Untitled design (23)](https://www.residepanama.com/hs-fs/hubfs/Untitled%20design%20(23).png?width=600&height=240&name=Untitled%20design%20(23).png) - [Home](https://www.residepanama.com/en/) - [Panama Guide](https://www.residepanama.com/en/the-panama-guide-for-expats) - [Panama Blog](https://www.residepanama.com/en/reside-panama-blog) - Areas Show submenu for Areas - [Panama City](https://www.residepanama.com/en/areas/panama-city) - [Costa Verde](https://www.residepanama.com/en/areas/costa-verde) - [Coronado](https://www.residepanama.com/en/areas/coronado) - [David](https://www.residepanama.com/en/areas/david) - [Boquete](https://www.residepanama.com/en/areas/boquete) - [Cambutal](https://www.residepanama.com/en/reside-panama-blog/exploring-the-charms-of-cambutal-panamas-coastal-jewel) - Shopping Show submenu for Shopping - [Albrook Mall](https://www.residepanama.com/en/panama-store-directory-albrook-mall) - [Altaplaza Mall](https://www.residepanama.com/en/panama-store-directory-altaplaza-mall) - [Marketplaza](https://www.residepanama.com/en/panama-store-directory-marketplaza-costa-verde) - [Metro Mall](https://www.residepanama.com/en/panama-store-directory-metro-mall) - [Multicentro Mall](https://www.residepanama.com/en/panama-store-directory-multicentro-mall) - [Multiplaza Mall](https://www.residepanama.com/en/panama-store-directory-multiplaza-mall) - [Town Center Mall](https://www.residepanama.com/en/panama-store-directory-town-center-mall) - [Westland Mall](https://www.residepanama.com/en/panama-store-directory-westland-mall) Open main navigation Close main navigation - [Home](https://www.residepanama.com/en/) - [Panama Guide](https://www.residepanama.com/en/the-panama-guide-for-expats) - [Panama Blog](https://www.residepanama.com/en/reside-panama-blog) - Areas Show submenu for Areas - [Panama City](https://www.residepanama.com/en/areas/panama-city) - [Costa Verde](https://www.residepanama.com/en/areas/costa-verde) - [Coronado](https://www.residepanama.com/en/areas/coronado) - [David](https://www.residepanama.com/en/areas/david) - [Boquete](https://www.residepanama.com/en/areas/boquete) - [Cambutal](https://www.residepanama.com/en/reside-panama-blog/exploring-the-charms-of-cambutal-panamas-coastal-jewel) - Shopping Show submenu for Shopping - [Albrook Mall](https://www.residepanama.com/en/panama-store-directory-albrook-mall) - [Altaplaza Mall](https://www.residepanama.com/en/panama-store-directory-altaplaza-mall) - [Marketplaza](https://www.residepanama.com/en/panama-store-directory-marketplaza-costa-verde) - [Metro Mall](https://www.residepanama.com/en/panama-store-directory-metro-mall) - [Multicentro Mall](https://www.residepanama.com/en/panama-store-directory-multicentro-mall) - [Multiplaza Mall](https://www.residepanama.com/en/panama-store-directory-multiplaza-mall) - [Town Center Mall](https://www.residepanama.com/en/panama-store-directory-town-center-mall) - [Westland Mall](https://www.residepanama.com/en/panama-store-directory-westland-mall) Open search Close search This is a search field with an auto-suggest feature attached. - There are no suggestions because the search field is empty. # Extending Preferential Interest Benefits for First-Time Homebuyers in Panama [Reside Panama](https://www.residepanama.com/en/reside-panama-blog/author/reside-panama) Owning a home is a dream for many individuals, and in Panama, the government is taking significant steps to make this dream more accessible. Recently, the Minister of Housing and Territorial Planning (Miviot), Rogelio Paredes, presented a proposed bill to the National Assembly that aims to extend and modify the preferential interest regime for certain mortgage loans. The new legislation is set to benefit a segment of homebuyers, allowing them to take advantage of preferential interest rates until the end of 2025. Let's delve into the key provisions of this bill and its potential impact on the housing market in Panama. ### Extending Preferential Interest for First-Time Homebuyers: The proposed bill seeks to extend the preferential interest benefit for the purchase of the first home until the end of 2025. However, this extension is limited to a specific segment of housing units valued up to $120,000. Additionally, the bill aims to expand the coverage brackets based on the prices of these residential properties. ### Modifications to Interest Rates: Under the new legislation, the preferential interest rate coverage will remain available for first-time homebuyers for properties valued between $45,000 and $180,000. The bill specifies different interest rates for various price ranges: 1. For homes with a value ranging from $45,000 to $80,000, the preferential interest rate will not exceed 4% on mortgage loans. The government will cover 4%, and the borrower will be responsible for the remaining 2% during the 10-year non-renewable period. 2. Homes valued between $80,000 and $120,000 will benefit from a 3% preferential interest rate. In this case, the borrower would only pay the difference, which is 3%, if the reference mortgage rate is at 6%. This coverage will remain in effect for ten years. 3. For properties priced between $120,000 and $150,000, the bill proposes a 2% preferential interest rate for a 5-year period. 4. Finally, for homes priced above $150,000 up to $180,000, located exclusively in the provinces of Panama and Panama Oeste, the preferential interest rate will be set at 1.5% for a period of 5 years. ### Supporting Affordable Housing: It's essential to note that for properties priced below $45,000, the government will cover 100% of the interest rate. This means that the beneficiaries will only be responsible for repaying the principal amount of the mortgage in installments agreed with the financing institution. ### The Impact on Panama's Housing Market: The government's efforts to extend preferential interest benefits are expected to stimulate the demand for affordable housing. According to the National Council of Housing Promoters (Convivienda), approximately 82% of the housing market in Panama comprises units priced from zero to $180,000, which fall under the preferential interest coverage for mortgage loans. With the extension of this benefit, more potential homebuyers will be encouraged to enter the market, resulting in increased sales and a potential reduction in the housing deficit, estimated at 185,000 units. ### Exceptions and Other Provisions: The proposed bill includes nine articles and outlines specific exceptions to the preferential interest benefits. For properties priced between $120,000 and $180,000, the extension of preferential interest will only be applicable until June 30, 2024. Additionally, the bill aims to extend the exemption from the real estate transfer tax for first-time homebuyers until August 1, 2025. ## Publicaciones Relacionadas [![All-inclusive Resorts in Panama](https://www.residepanama.com/hs-fs/hubfs/4-1.jpg?height=500&name=4-1.jpg)](https://www.residepanama.com/en/reside-panama-blog/all-inclusive-resorts-in-panama?hsLang=en) [Living in Panama](https://www.residepanama.com/en/reside-panama-blog/tag/living-in-panama) ## [All-inclusive Resorts in Panama | Best Places to Stay in 2023](https://www.residepanama.com/en/reside-panama-blog/all-inclusive-resorts-in-panama?hsLang=en) Panama offers a variety of resorts. In this article, we will take a closer look at some of the best... 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