August 21st, 2014 (InsideCostaRica.com) The State-owned banks, Banco de Costa Rica (BCR) and Banco Nacional have introduced 40-year mortgages in colones, the longest term offered to date in the country.
Bank officials say the move is aimed at middle-class consumers and first-time homebuyers.
At BCR, the 40-year note carries a fixed interest rate of 9% for five years, after which consumers pay the base rate plus 3%. Consumers can finance up to 100% of the purchase.
Banco Nacional offers its 40-year note at 9.1% for the first three years, 11.1% for the forth and fifth years, and the remaining duration of the mortgage at the passive base rate plus 5.6%. Banco Nacional said their offer can also be used for home improvement, such as the purchase of eco-technologies such as solar panels and solar hot water heaters.
The maximum loan at both banks is ¢100 million (~$189,000). The 40-year notes are not available in dollars.