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Private Mortgage in Costa Rica: How It Works

September 4, 2026
Foreign Borrowers, Loan Terms & LTV, Property-Backed Loans

What Is a Private Mortgage in Costa Rica?

A private mortgage in Costa Rica functions similarly to a conventional mortgage in structure — it is a loan secured by a lien on real estate, recorded in the Registro Nacional (Costa Rica’s public property registry). The key difference is the lender: instead of a regulated bank or financial institution, the loan comes from a private lender or a pool of private investors.

GAP Equity Loans is Costa Rica’s leading private mortgage broker, connecting foreign property owners and investors with private capital at terms that local banks cannot or will not offer.

How Private Mortgages Differ from Bank Loans

Costa Rican banks are deeply conservative lenders. For foreign nationals — expats, retirees, part-time residents, or international investors — qualifying for a traditional mortgage is practically impossible without years of established Costa Rican credit history, proof of local income or pension deposits into a Costa Rican account, residency documentation, and extensive financial disclosures translated into Spanish.

Private mortgages bypass all of this. Approval is based on the property’s appraised value and the borrower’s equity — not nationality, credit score, or residency status. For most foreign buyers and owners in Costa Rica, a private mortgage is not just an alternative to bank financing — it is the primary option.

The Legal Framework: Security and Enforceability

A private mortgage in Costa Rica is not an informal arrangement. The loan is formalized through a mortgage deed (escritura de hipoteca) drafted by a licensed Costa Rican attorney, signed before a notary public, and recorded in the Registro Nacional. This creates a legal first-position lien on the property — fully enforceable under Costa Rican law.

Borrowers have the same protections as with any registered mortgage: the terms are documented, interest rates are fixed, and the lender cannot change terms mid-loan.

Loan Terms and Parameters

GAP Equity Loans private mortgages cover loan amounts from $50,000 to $3,000,000 USD, with loan-to-value up to 50% of the property’s appraised value. Interest rates are fixed between 12% and 16% per year for loan terms of 6 months to 3 years. Monthly payments are interest-only, with the principal due at term end. Prepayment terms, including any applicable penalty, are discussed with you directly before closing.

Common Uses for a Private Mortgage

Borrowers use GAP private mortgages to purchase homes, lots, or commercial buildings in Costa Rica; to unlock equity from existing properties through cash-out refinancing; to bridge a gap between a purchase and a future sale or long-term financing event; to fund construction of a new structure on titled land; and to access business capital using real estate equity.

Who Uses Private Mortgages in Costa Rica?

Our borrowers include U.S. and Canadian retirees purchasing or refinancing a primary or vacation home, international investors acquiring income-producing properties, expats who own property but lack Costa Rican banking relationships, developers or builders needing short-term construction capital, and property owners who need liquidity quickly without selling.

The Process: From Inquiry to Funding

The private mortgage process through GAP Equity Loans typically takes 7 to 10 business days. You begin with an inquiry sharing your property details and financing need. GAP arranges an independent licensed appraisal, then presents a written term sheet with loan amount, rate, and conditions. A Costa Rican attorney prepares the mortgage deed, documents are executed before a notary, and the lien is recorded in the Registro Nacional before funds are disbursed.

Get Started with a Private Mortgage in Costa Rica

If you own or are purchasing real estate in Costa Rica and need financing that works for foreign nationals, GAP Equity Loans can help. Contact our team today to discuss your property, your goals, and the loan structure that fits your situation.

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