Panama’s Approval of New Preferential Mortgage Loans Falls By 34%
The reform to the Preferential Interest Rate Law and the elimination of tax incentives for new housing have slowed new mortgage lending. In the first four months of the year, $132 million in subsidized loans were granted, $68 million less than in the same period of 2025.
Demand for new loans to purchase homes remains weak, reflecting the sluggishness of the construction sector and an impact on the purchasing power of families who are postponing home purchase plans due to the economic situation.
Between January and April 2026, $132 million in preferential mortgage loans were granted, representing an absolute reduction of $68 million compared to the $200 million granted by banks in the first four months of 2025.
