How Much Money Can I Borrow Against My Property in Costa Rica?

In Costa Rica you can usually borrow up to 50% of what your property is worth with a private loan, and lenders prefer about 30% or less. So on a home GAP values at US$500,000, US$150,000 is a comfortable request, US$200,000 is possible, and US$250,000 is the ceiling.

That is the short answer. Let me tell you how it really works, because I’ve been doing this a long time and the same questions come up every week: what is my place worth, what happens to my bank loan, and how fast can I get the money?

How much can I borrow? The 50% ceiling and the 30% sweet spot

Private lenders in Costa Rica look at one number first: the loan-to-value (LTV). That is the loan amount compared to the value of the property. At GAP Equity Loans:

• 50% of the property’s value is the maximum. We don’t go above it.
• About 30% or less is what lenders prefer. A 40% request is still easier to place than one at the full 50%.
• Loans start at US$50,000, in US dollars, for 6 months to 3 years, with interest-only monthly payments.

Property value (GAP’s valuation)	30% (preferred)	40%	50% (maximum)
US$200,000	US$60,000	US$80,000	US$100,000
US$350,000	US$105,000	US$140,000	US$175,000
US$500,000	US$150,000	US$200,000	US$250,000
US$1,000,000	US$300,000	US$400,000	US$500,000

These are examples of borrowing levels, not approvals. The final amount depends on the property, the title, the location and your plan to repay. Requests above US$1 million need extra documents and review.

Why borrow less than the maximum?

Because borrowing less gets you a better deal. Lower LTV generally supports better pricing, and a lender looks at a 30% loan very differently from a 50% one. Up to 50% is our ceiling, not the goal. If you only need US$120,000, don’t ask for US$200,000 “just in case”. You pay interest on every dollar every month.

How GAP decides what your property is worth

Everybody thinks their place is worth more than the number we can use for a loan. That’s normal, and I understand it. But the value that counts is the value GAP determines, with the lender’s input, not the price on a listing or the number a neighbour got years ago.

We look at:

• The title. It must be titled property, registered in the National Registry (Registro Nacional). Titled land also qualifies, on stricter terms.
• Location and access. Where the property is, the road in and how easy it would be to sell.
• Condition. A well-kept home is worth more to a lender than one that needs a new roof.
• What is already registered against it. Any mortgage, lien or annotation shows up in the Registry, so tell us up front.

One tip from experience: send us current photos. When a loan falls apart late in the process, it’s usually because the borrower sent beautiful pictures from ten years ago and the place we visited was run down. Honest photos save everyone time. We only do a site visit at the final stage, once the documents check out.

What if I already have a mortgage on the property?

That is fine, but it changes the math. GAP never arranges second-position loans. Any existing mortgage must be paid off before or at closing, usually from the new loan, so the new lender holds first position. So the question is not only “how much is my property worth?” but “how much is left after the old loan is paid?”

Example: your home is valued at US$400,000 and you owe US$60,000 to a bank. At 40% the loan would be US$160,000; US$60,000 goes to pay off the bank and the rest, less the loan fees, comes to you. Read more on second mortgages in Costa Rica.

How much cash will I actually receive?

Less than the loan amount, and you should know that from day one. The borrower pays the loan-related fees, and they are deducted from the loan at closing. If an old mortgage is being paid off, that comes out too. Ask us for the full closing breakdown before you sign anything; we’ll go through it line by line.

Do I need good credit or proof of income?

No. GAP does not require a credit score or income verification. Your property and your equity carry the loan. Borrowers of any nationality can apply, which is why so many foreigners and self-employed owners come to us.

What we do need is a clear exit plan: how you will repay at the end of the term. Selling the property, refinancing, a business payment coming in, the sale of another asset. A realistic exit plan matters more to a lender than a credit report ever did.

Banks or a private loan?

Years ago I went to a home show and saw a bank advertising a great mortgage rate. When I went to that bank as a foreigner, the rate they actually offered me was higher, and it went up again after three years. The ad was not the offer. Banks set their own rules for newcomers, ask for local credit history, and can take many months, if not longer, to close.

A private loan through GAP is different. With solid property and a complete file, qualified loans can close within 10 business days. It is short-term money (6 months to 3 years) to buy, refinance, renovate, build or free up cash, not a 30-year mortgage. If you need long-term financing, a bank may still be the right answer, and we’ll tell you so.

How to apply

1. Send the basics: a photo of your passport, DIMEX or cédula, the property details and title information, the amount you need, what it’s for and how you will repay.
2. GAP reviews the property and the title. We tell you honestly what amount is realistic.
3. A lender reviews the file with GAP’s valuation and your exit plan.
4. Site visit and closing with the lawyers. The mortgage is registered in first position in the National Registry.

You don’t need to send every document at once; we’ll tell you what else your file needs. See applying for a private loan in Costa Rica, our guide to home equity loans in Costa Rica, land loans, construction loans and where we lend.

Watch out for promises that sound too good

We never promise approval, instant cash or funding before we’ve seen the property. Be careful with anyone who does, and with anyone who wants money up front to “visit your site” before they’ve even read your documents. An honest process has the steps in the right order.

Frequently asked questions

How much can I borrow against my property in Costa Rica?

Up to 50% of the value GAP determines for the property, with about 30% or less preferred by lenders. Loans start at US$50,000.

Can I borrow if I still owe money on the property?

Yes, if there is enough equity. The existing mortgage must be paid off before or at closing, usually from the new loan, because GAP lenders only lend in first position.

Do I need to live in Costa Rica or be a resident?

No. Borrowers of any nationality can apply. What matters is titled Costa Rica property and a clear plan to repay.

How long does it take?

Qualified loans can close within 10 business days once the complete file is ready.

What can I use the money for?

Buying, refinancing, renovating, building or freeing up cash for a business or another purchase. Tell us the purpose; it helps the lender understand the loan.

What are the loan terms?

From 6 months to 3 years, in US dollars, with interest-only monthly payments and the principal repaid at the end of the term.

Want to know what your property could support? Send us a WhatsApp at +506 4001 6413 to set up a time to talk, or email [email protected]. Tell us where the property is, roughly what it’s worth and how much you need, and we’ll give you an honest answer.

This article is general information, not financial, legal or tax advice. Every loan depends on the property review, the documents and the lender’s approval.

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