How to read a mortgage proposal

Look beyond the loan payment

A good comparison starts with understanding each item. Take your questions to the institution and keep a written proposal that you can review at your own pace.

Understand what you are comparing

Confirm the amount to be financed and the down payment you will need to provide. Then review the loan term, how interest is calculated and the payment schedule. Ask which costs are included in each payment and which are charged separately.

Questions to ask your bank

Record the answers alongside each proposal. The Superintendencia de Bancos de Panamá provides information on rates, interest and fees; use it to prepare your questions and ask the lender for the terms that apply to your circumstances.

What exactly does the monthly payment include?
Which interest rates and fees can change, and under what conditions?
What insurance and additional expenses are required?
What conditions apply to early repayments and loan approval?

Things to consider

Test a less favorable budget too: unexpected expenses, changes in income or changes to terms permitted by the contract. The aim is to understand the commitment before taking it on.

Check how long the proposal remains valid and which steps are still needed for a formal decision. An estimate on this website can help you explore the numbers, but may not include every charge involved in an actual transaction.