The financing options available in Costa Rica cater to a diverse range of individuals, including foreign non-residents, residents, and Costa Ricans. For first home purchases, loan-to-value terms extend up to 70% for foreign non-residents and residents, while Costa Ricans can access up to 80%. For second homes or investment properties, the loan-to-value ratio is up to 70% for all categories.

With terms spanning up to 20 years, interest rates vary depending on the type of property and borrower status, starting at 8% until May 31, 2024. Fixed rates are applicable for the first year of an equity or investment loan, with subsequent terms being variable and adjustable every three months. Essential documentation includes Know Your Customer (KYC) forms, passport and driver’s license copies, income tax returns for the past three years, property valuation, and credit reports from at least two agencies.

Additional requirements vary based on employment status, with pre-payment penalties applicable within the first five years. A bank commission of 1.5% applies to the financed amount, and life insurance is mandatory, provided by a Costa Rican insurance company. Interest rates are determined by the Tri Rate, a variable benchmark comprising the weighted average of certificate of deposits (CDs) in Costa Rica, plus an additional fixed percentage.