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Cash-Out Refinance on a Costa Rica Property

September 4, 2026
Loan Terms & LTV, Property-Backed Loans, Refinancing & Bridge Loans

What Is a Cash-Out Refinance in Costa Rica?

A cash-out refinance allows you to replace an existing loan on your Costa Rica property with a new, larger loan — pocketing the difference in cash. If your property has built up equity since you purchased it, you can convert that equity into usable funds without selling.

Unlike a home equity line of credit or a second mortgage, a cash-out refinance replaces your existing financing entirely. GAP Equity Loans structures these as private first-position mortgage loans, secured by your Costa Rica real estate.

How Cash-Out Refinancing Works Through a Private Lender

Costa Rica’s banking system is largely inaccessible to foreign property owners, especially for refinancing. Local banks require years of Costa Rican credit history, complex documentation, and lengthy approval timelines that can stretch six months or more.

Private lenders like GAP Equity Loans operate differently. The approval is based on your property’s appraised value — not your credit score or country of origin. If you own a titled property in Costa Rica worth at least $100,000, you may qualify for a cash-out refinance within weeks.

How Much Can You Pull Out?

GAP Equity Loans lends up to 50% of your property’s appraised value (loan-to-value ratio). If your Costa Rica home, lot, or commercial property is appraised at $400,000 and is currently unencumbered, you could access up to $200,000 in cash.

Minimum loan amounts start at $50,000, and there is no upper ceiling — loans into the millions are available for higher-value properties. Your exact borrowing capacity depends on the current appraised value and any existing liens on the property.

What Can You Use the Funds For?

Cash-out refinancing in Costa Rica is commonly used for home renovations and upgrades, business expansion, debt consolidation, real estate purchases using equity in one property to fund another acquisition, construction financing, and working capital to provide a cash buffer for a business or rental operation. GAP does not restrict how you use the funds once the loan closes.

Loan Terms and Interest Rates

GAP Equity Loans cash-out refinances are structured as short-to-medium-term private loans. Loan amounts range from $50,000 to $3,000,000 USD with a loan-to-value up to 50% of appraised value. Interest rates run 12% to 16% annually (fixed), and loan terms run from 6 months to 3 years. Payments are monthly interest-only, with principal due at maturity. Prepayment terms, including any applicable penalty, are discussed with you directly before closing.

These are not long-term bank mortgages. GAP’s private loans work best for borrowers who need capital now and plan to repay within the term — whether through income, a property sale, or a future refinance into longer-term financing.

Who Qualifies for a Cash-Out Refinance?

To qualify for a GAP Equity Loans cash-out refinance on your Costa Rica property, you generally need a titled Costa Rica property registered in the Registro Nacional, sufficient equity so that at least 50% of the property’s value remains unencumbered after the loan, and a clear title with no unresolved legal encumbrances.

Your nationality, residency status, and foreign credit score are not factors in GAP’s approval process. Expats, foreign nationals, and Costa Rican residents all qualify on the same terms.

The Process: From Application to Funding

Most GAP Equity Loans cash-out refinances close within 7 to 10 business days. The process begins with an initial consultation to share your property details and funding goals, followed by a property appraisal arranged by GAP. You then receive a term sheet outlining the loan amount, rate, and conditions. A Costa Rican attorney drafts the mortgage deed, documents are signed before a notary, the lien is registered in the Registro Nacional, and proceeds are transferred to your account.

Ready to Access Your Costa Rica Property Equity?

If you own real estate in Costa Rica with available equity, GAP Equity Loans can structure a cash-out refinance that gets you funded fast — without the bank bureaucracy. Contact our team today to discuss your property and find out how much you can access.

Article by Glenn Tellier (Founder of CRIE and Grupo Gap)