The Program of Help to the Consumer (PAC in Spanish) is currently in Congress waiting to be approved. Preferential rates are a subsidiary which the government gives in order to lower interest rates for primary residencies which are valued up to $62,500. Under the new law this amount will be raised to $80,000.

(Town Plaza in Penonome - Panama - you can find many preferential interest properties in the interior of the country)

The Government promises to subsidize 100% of the interest rates of mortgages up to $30,000. Both norms will be in effect until 2014.

“The current preferential rates expirer in May of 2009 and we decided to extend them for 5 more years” commented the Hector Alexander – spokesperson for the Ministry of Economy and Finances during a conference to the congressmen. This project will cost the government approximately $200.8 million in the next 6 years, starting with $10.3 million in 2009 and closing with $54.2 million in 2014.

The National Council of Hosing Promoters (CONVIVIENDA) evaluates positively the decision of the government.

82% of mortgages awarded in Panama pay preferential rates and this government help has favored 101,098 families since 1990 and 2006.

LA PRENSA NEWSPAPER ARTICLE – FRIDAY 22 OF FEBRAURY OF 2009

The number of foreigners obtaining mortgages in Panama is growing at a very fast rate. According to the Panamanian Chamber of Construction (CAPAC) 850 mortgage loans were given in the first semester of 2007 – which represents 32% more compared to the same period in 2006.

(Malibu Beach Resort – Panama)

Although mortgages cannot give a complete idea of foreigners purchasing real estate in Panama – since many prefer to pay cash – they are a good indicator of the impact of the construction boom.

“These 850 mortgages only represent 6.8% of the total amount given in this period, but if you compare it to the borrowing amount - $162.5 million – this represents 31.4% of the total amount of mortgages given” - according to Michael Fernandez who is the economic director of CAPAC.

REQUIREMENTS FOR MORTGAGE LOANS IN PANAMA

In the US and other countries banks require title insurance as a requirement to obtain a mortgage loan. Here for commercial or private loans, banks require a person to obtain fire and life insurance policies as a guarantee that if the person passes away the insurance company will reimburse the bank for the unpaid portion of the loan. The property you are buying is not sufficient collateral for banks in Panama.

You have the option of buying these insurance policies from the bank or getting them from a broker.

THE LAW

Article 36 of the Law 59 of 29 of July of 1996.

Clients of private and state banks, financial companies, fiduciaries, credit institutions, and automobile agencies, have the liberty to decide and designate their insurance companies and their insurance brokers (natural or juridical) in those transactions in which the purchase of an insurance is needed.

There are numerous advantages of obtaining life and fire policies from a broker!

THE BENEFIT OF HAVING AN INSURANCE BROKER

An insurance broker is an intermediary between the client and the insurance company and/or the bank. We believe in creating lasting relationships with our clients and in order to do so we have to provide our clients with the fastest service and the lowest premiums that satisfy their individual needs. After doing a need analysis, we give our clients a few options with different premiums for them to choose which one they find more suitable.

When it comes to bank mortgage or loans we do this on a daily basis, so we know the importance of being reliable and fast. We handle all the paperwork required by the insurance company and after the policy is emitted we take it to the bank, so it’s more convenient for our clients.

LOWER PREMIUMS

We offer term policies for mortgage loans. What this means is that unless you choose to get a permanent policy, we do policies specific for the time of the loan. You can bring us the quote on the policies the bank offers and we will always beat that price!

MORE OPTIONS

Wouldn’t it be nice if besides having your life covered, you could get financial benefits out of your life policy? Well now you can!

• Reimbursement of premiums at the end of the term

• Accumulation of values at a guaranteed and projected interest rate

Also:

• Coverage doubles because of accidental death

• Exoneration of premium payment and/or rent due to total disability

• Savings within your policy that you can withdraw at any time without the need to reimburse to the policy

• Coverage until age 99 for permanent policies

All these options must be added on to the initial policy, if not they do not apply.

LEVELED COVERAGE FOR THE WHOLE TERM

We do not sell decreasing coverage. The premium you pay stays the same for the whole term of your mortgage and so is the amount you are covered for. This is a way of protecting your loved ones, since you are guaranteeing that the reminiscent of the loan will be taken care for and your family will receive the rest of the insured sum.

YOU PAY PREMIUMS ACCORDING TO YOUR AGE

We believe that your policy should be calculated on your age risk, not of an average age risk. This guarantees lower premiums. The premium you are quoted at the time you are getting the mortgage will be the same throughout the rest of the term.

YOU CAN GET YOUR LAB AND/OR MEDICAL EXAMS INr YOUR COUNTRY OF RESIDENCY OR DONE IN YOUR HOTEL / RESIDENCE

We understand that your time is valuable

This is why we design everything to fit your commodity. Many of our clients prefer to do their exams in their own country since their stays in Panama are short. To do this we have arrange a network of labs and doctors in most countries of the world. All we need to do is know where you live permanently and we will send you to one of our providers. The costs of the lab and/or medical exams will be reimbursed using as a reference the cost for those exams in Panama.

If you have a longer visit it is preferable to do those exams here in Panama. Our lab specialist and/or doctor will come to you at no cost or you can go directly to the clinic and/or lab. Let us know to coordinate an appointment. The exams should not take more than a few minutes.