You’ve made the decision. You’re ready to put down roots in Costa Rica … whether it’s for a lifestyle change, retirement, or a long-term investment.
Now comes the real question: Can I actually get a mortgage in Costa Rica as a Canadian?
The short answer? It is possible … but there are a few things you should know first.
This guide walks you through how mortgages work in Costa Rica, what financing options are (and aren’t) available to foreigners, and how most Canadians make it happen. No fluff … just straight answers.
Can Foreigners Buy Property in Costa Rica?
Yes, and that’s the first bit of good news.
Costa Rica is very foreigner-friendly when it comes to real estate. In fact, as a Canadian, buying a home in Costa Rica gives you the same legal property ownership rights as a Costa Rican citizen (with a couple of exceptions when it comes to beachfront concessions — more on that later).
You can own land in your name, through a corporation, or in a trust. The process is straightforward, but like any international investment, it helps to have a good lawyer and a reputable real estate agent on your side.
So… Can I Get a Mortgage in Costa Rica?
The reality is that getting a mortgage in Costa Rica is possible but difficult, especially if you’re not a legal resident.
Here’s what you need to know (and alternative options for making your dream a reality):
1. Most local banks won’t finance non-residents
- Costa Rican banks are conservative lenders.
- Many require permanent residency or citizenship to qualify.
- Even if you’re approved, the process is slow and heavily paper-based.
- Local banks can have a hard time verifying income, employment history, credit scores and other important information.
2. Interest rates are higher than in Canada
- Expect rates of 7% to 12% or more, depending on the bank and loan terms.
- Loans are usually in Costa Rican colones or U.S. dollars.
- Mortgage terms are generally limited to 20 years or less.
3. You’ll need a large down payment
- Typical down payments range from 35% to 50%.
- Lenders want to see proof of income, assets, and bank statements — all translated and notarized.
Options for a Canadian Mortgage in Costa Rica
If Costa Rican banks aren’t an option, don’t give up just yet. Canadians exploring a Costa Rica mortgage do have alternatives:
1. Finance through a Canadian bank (via home equity)
- If you already own property in Canada, consider a Home Equity Line of Credit (HELOC).
- HELOCs typically have lower interest rates and flexible terms.
- This is one of the most common ways Canadians fund real estate in Costa Rica.
2. Private lenders in Costa Rica
- Some developers or private lenders offer financing to foreigners.
- Terms vary and interest rates are usually high.
- These loans are less regulated, so do your due diligence and work with a lawyer.
3. Developer or owner financing
- Some property developers offer in-house financing to attract foreign buyers.
- You may be able to negotiate payment terms directly with a seller.
- Keep in mind: terms can vary widely and may not be long-term solutions.
4. International mortgage lenders
- A small number of specialized lenders offer international mortgages for foreign property purchases.
- These companies often cater to expats and retirees.
- Interest rates are typically higher than domestic Canadian rates, and you’ll need a strong financial profile to qualify.
- Look for lenders with experience in Costa Rica real estate and always read the fine print.
5. Paying in cash
- It might not be traditional “financing,” but paying in full with cash is often the simplest and most effective route.
- It eliminates the hassle of international lending, avoids high interest rates, and can give you more negotiating power with sellers.
- Many Canadians use savings, proceeds from a home sale, or equity from a Canadian property to pay cash.
- Just make sure to work with a lawyer to handle the transaction properly and ensure all funds are transferred securely.
The Costs of Buying Property in Costa Rica
No matter how you plan to finance your home, there’s one thing you can count on: there will be fees. From legal costs to insurance requirements, buying property in Costa Rica comes with several extra expenses that aren’t always obvious at first glance.
Here’s what to expect.
Mortgage-Related Fees
If you’re financing (through a Costa Rican lender or otherwise), these are common add-ons:
- Mortgage registration in the transfer deed:
- 0.25% registration fee
- ~0.53% for documentary stamps
- Separate mortgage instrument (if required):
- Notary fees: ~0.50%–1.25% of the mortgage amount
- Life insurance:
- Not always mandatory for mortgage approval
- Protects your family if something happens to you
- Property insurance:
- Usually required
- Protects your investment in the case of fire, earthquakes, and other potential damages
- Appraisal fees (for private lenders):
- Typically between $500 and $1,000
- Lender admin fees:
- Around 1.5% of the loan amount
- Attorney commissions:
- Varies — always ask upfront and get it in writing
One-Time Purchase & Closing Costs
Even if you’re paying in cash, you’ll still have a few unavoidable costs:
- Transfer tax and registration fees: ~1.5% of the property value
- Legal fees: Typically 1%–1.5% of the purchase price
During the due diligence period, your lawyer should give you a full breakdown of every expected cost — including taxes, legal fees, and any hidden charges that might pop up.
Is a Costa Rica Mortgage Right for You?
If you’re looking to buy a home in paradise, Costa Rica makes it possible — but not always easy when it comes to financing. The best route for most Canadians is to arrange financing back home and arrive with cash in hand.
A Costa Rica mortgage for foreigners does exist, but it often comes with higher costs, more paperwork, and limited options.
If you’re serious about buying, take these steps:
- Talk to your Canadian bank about equity financing.
- Connect with a trusted real estate agent in Costa Rica.
- Hire a bilingual real estate lawyer experienced with foreign buyers.
- Research the area thoroughly — not just the home, but the infrastructure, safety, and community vibe.