Not every country allows foreign ownership of property. But Costa Rica welcomes it, and you can buy your own beautiful piece of this country with relative ease. Until a few years ago, this privilege has been reserved for cash buyers. This option makes a lot of sense for many people who are selling their primary residence in the States or Canada, and are rolling the proceeds into a new home in CR.

However, we are increasingly seeing people in their 40's and 50's who have some nest egg set aside, and they want to purchase a transitional home in CR to use as a vacation place until they are ready to retire full time. This is particularly wise as it allows them to benefit from the consistently rising property values, rather than finding that they cannot afford to enter the market in 10 years.

These same buyers will need financing, and in recent years, the larger banks in the country have really changed their approach and now a prospective buyer with good credit can obtain a Costa Rica mortgage. It used to be that you had to hope to build a good relationship with the national banks, or use a broker to place your loan privately. Formerly, bank mortgages were for small amounts and short terms - sometimes only 5-8 years.

Now you can go through a traditional application process and get a Costa Rica mortgage with ease. The application is typical of one in the US, although you may have to hire an accountant licensed in Costa Rica to certify your returns. Once the information is complete, you actually get an answer faster than most US banks - in 3-5 days.

It is common now to put down 20-25% of the appraised value of the property and take a 10, 15 or 20 year mortgage. Application fees and points are around 1-1.5%, and currently the interest rate is about 8%. Everyday, new options are offered, so it makes sense to do some homework. Our office can refer you to a mortgage broker, who for a fee, will shop around for your best deal. Their fee often adds up to savings for you.

Recently, Scotia Bank, HSBC and Citibank have all entered the Costa Rica market with large acquisitions. This is good news for most buyers who are ready to buy their own piece of Costa Rica real estate.