Can foreigners get a mortgage in Colombia?

Authored by the expert who managed and guided the team behind the Colombia Property Pack

Everything you need to know before buying real estate is included in our Colombia Property Pack

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THE LATINVESTOR

A team specialized in real estate investing in LATAM countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Colombia. If you'd like to learn more about us, you can check our presentation page.

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At The LatinVestor, we explore the Colombian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Bogotá, Medellín, and Cartagena. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Is it actually possible for foreigners to get a mortgage in Colombia right now?

Yes, foreigners can get mortgages in Colombia as of September 2025, but approval rates remain low for non-residents.

Colombian banks require foreigners to have established residency status through M (temporary) or R (permanent) visas before considering mortgage applications. Tourist visas or business visitor status will result in automatic rejection.

Most successful foreign applicants have lived in Colombia for at least 6-24 months, built local credit history, and can demonstrate stable Colombian income sources. Banks view foreign mortgage applications as high-risk, requiring additional documentation and higher down payments compared to Colombian citizens.

The approval process heavily favors foreigners who have integrated into the Colombian financial system through local employment, business ownership, or marriage to Colombian nationals.

Which Colombian banks or lenders are known to work with foreign applicants?

Seven major Colombian banks actively accept mortgage applications from qualified foreign residents.

Bancolombia leads in foreign mortgage approvals, followed by Davivienda and BBVA Colombia, which have dedicated international client services. These three banks process approximately 80% of successful foreign mortgage applications in Colombia's major cities.

AV Villas, Banco de Bogotá, Scotiabank Colpatria, and Banco Caja Social also accept foreign applications but with stricter requirements and longer processing times. Smaller regional banks typically avoid foreign mortgage lending due to regulatory complexity.

Each bank maintains different criteria for foreign applicants, with some requiring higher income thresholds or longer residency periods than others.

Do you need to be a resident to qualify, or is it possible as a non-resident?

Legal residency is mandatory for mortgage approval in Colombia.

Non-residents on tourist or business visas face automatic rejection from all major Colombian banks. You must hold either an M-type (temporary resident) or R-type (permanent resident) visa status with a valid Cédula de Extranjería (foreigner ID card).

Banks require proof of continuous Colombian residence for at least 6 months before considering mortgage applications. This residency requirement extends beyond visa status to include demonstrated local integration through banking relationships, utility payments, and tax registration.

Some banks demand up to 2 years of proven Colombian residence for first-time foreign mortgage applicants, particularly those without local employment or business ties.

What kind of visa is officially recognized as residency for mortgage purposes?

Colombian banks recognize five main visa categories for mortgage eligibility.

Visa Type	Description	Mortgage Eligibility
M-1	Spouse of Colombian citizen	High - Fast-tracked approval
M-5	Pensioner/Retiree	Good - With income verification
M-10	Real estate investment	Good - Property investment track record
M-15	Employee/Worker	Good - With employment contract
R-type	Permanent residency	Excellent - Same as Colombian citizens
Tourist/Business	Temporary visitor	None - Automatic rejection
Student	Educational visa	Very Limited - Rare exceptions

Does being married to a Colombian citizen make the process easier or faster?

Marriage to a Colombian citizen significantly improves mortgage approval chances and processing speed.

Foreign spouses with M-1 marriage visas receive preferential treatment from most Colombian banks, with some institutions offering expedited application processing within 4-6 weeks instead of the standard 8-12 weeks. Bancolombia and Davivienda maintain special programs for foreign spouses.

However, marriage alone doesn't waive other requirements including local income verification, credit history, and down payment obligations. Banks still evaluate the foreign spouse's financial capacity independently, though they may accept joint income calculations with the Colombian partner.

Married applicants often qualify for slightly lower interest rates and reduced down payment requirements, sometimes as low as 25-30% instead of the standard 40-50% for other foreigners.

What are the usual down payment requirements in percentage terms?

Foreign buyers face down payment requirements of 30-50% of the total property value.

Standard down payments for foreigners range from 30-40% for well-qualified applicants with established Colombian credit and employment history. New residents or those with limited local financial history may face requirements up to 50% of the property purchase price.

This contrasts sharply with Colombian citizens who can access mortgages with down payments as low as 10-20% through government-backed programs like Mi Casa Ya. Foreign buyers cannot access these subsidized programs, limiting them to commercial mortgage products.

Luxury properties above $200,000 USD often require down payments of 40-50% regardless of the applicant's financial profile, while properties under $100,000 may qualify for the lower 30% requirement.

It's something we develop in our Colombia property pack.

What interest rates and repayment terms are typically offered to foreigners?

Foreign mortgage borrowers in Colombia face interest rates between 10.4-17.75% annually with loan terms of 5-20 years.

Standard rates for qualified foreign residents range from 10.4-13% annually, while applicants with limited credit history or newer residency status may see rates up to 17.75%. These rates significantly exceed typical U.S. or European mortgage rates due to Colombia's higher baseline interest rate environment.

Most Colombian mortgages use UVR (Real Value Unit) indexing, meaning payments adjust quarterly based on inflation. This protects lenders against currency devaluation but creates payment uncertainty for borrowers. Fixed-rate options exist but typically carry 2-3% higher interest rates.

Loan terms typically range from 10-15 years for foreign borrowers, though some banks offer up to 20 years for well-qualified applicants. Shorter terms of 5-7 years are common for investment properties or secondary residences.

What documents do banks usually ask for from foreign applicants?

Colombian banks require comprehensive documentation proving residency, income, and financial capacity from foreign mortgage applicants.

1. **Identity and Residency Documents:** - Valid passport with entry stamps - M or R visa documentation - Cédula de Extranjería (foreigner ID) - Proof of Colombian address (utility bills, lease agreement) - Marriage certificate if applicable (apostilled and translated)2. **Financial Documentation:** - Colombian bank statements for past 6-12 months - Colombian income verification (pay stubs, employment contracts, business registration) - Colombian tax returns and NIT/RUT registration - Colombian credit report from DataCrédito or Cifin - Proof of down payment funds origin3. **Property Documentation:** - Property appraisal by bank-approved valuator - Property title verification (certificado de libertad y tradición) - Property tax payment history - Municipal property permits and compliance certificates

Can you use collateral or assets in another country to secure the loan?

Colombian banks do not accept foreign assets or collateral to secure mortgage loans.

All collateral must be located within Colombian territory and subject to Colombian legal jurisdiction. Banks require the purchased property itself to serve as primary collateral, with some institutions accepting additional Colombian real estate or business assets as secondary security.

Foreign bank accounts, investment portfolios, or real estate holdings cannot substitute for Colombian income requirements or serve as loan guarantees. This policy reflects regulatory restrictions and the practical difficulties of enforcing claims against overseas assets.

Some banks may consider foreign income as supporting documentation for overall financial capacity, but this income cannot replace the requirement for demonstrable Colombian income sources.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Colombia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

What is the typical step-by-step process for getting a mortgage in Colombia?

The Colombian mortgage process for foreigners involves nine distinct steps requiring 6-12 weeks to complete.

1. **Establish Legal Residency:** Obtain M or R visa and Cédula de Extranjería through Colombian immigration authorities2. **Build Colombian Financial History:** Open local bank accounts and maintain them for minimum 6 months while establishing credit through utility payments and small credit products3. **Secure Stable Colombian Income:** Establish employment, business registration, or pension income that can be verified through Colombian financial institutions4. **Gather Required Documentation:** Compile all identity, residency, financial, and property documents with proper apostilling and translation where needed5. **Submit Bank Applications:** Apply simultaneously to 2-3 banks to improve approval odds, scheduling in-person meetings with mortgage specialists6. **Undergo Credit and Income Verification:** Banks conduct thorough financial review including employment verification and credit analysis7. **Complete Property Appraisal:** Bank-approved valuators assess property value and legal compliance8. **Risk Committee Review:** Bank committees evaluate complete application package and make final approval decisions9. **Legal Documentation and Closing:** Complete mortgage contracts, property title transfer, and fund disbursement through Colombian notary system

How long does it normally take to get approval once you apply?

Colombian mortgage approval for foreigners typically requires 6-12 weeks from complete application submission.

Well-prepared applications with complete documentation and established banking relationships can achieve approval in 6-8 weeks through banks like Bancolombia or Davivienda. Applications requiring additional documentation, translation, or verification may extend to 10-12 weeks.

Common delays include incomplete apostilling of foreign documents, verification of overseas income sources, and coordination between multiple bank departments for risk assessment. First-time foreign applicants generally face longer processing times than those with existing Colombian banking relationships.

Colombian citizens typically receive mortgage approval within 3-6 weeks, highlighting the additional scrutiny applied to foreign applications. Pre-approval processes can reduce final approval time to 4-6 weeks for qualified foreign applicants.

If you can't get a mortgage, what are the most common alternatives in Colombia?

Foreign property buyers who cannot secure traditional mortgages have three primary financing alternatives in Colombia.

**Developer financing** represents the most popular alternative, offered by approximately 60% of new construction projects in major Colombian cities. Developers typically allow 12-24 month payment plans for down payments, with final mortgage processing required before property delivery. Interest rates range from 8-15% annually, often lower than traditional bank mortgages.**Seller financing** through direct agreements with property owners provides flexible terms negotiated case-by-case. Private sellers may accept 2-5 year payment plans with down payments as low as 20-30%, particularly for properties that have been on the market for extended periods. These arrangements require careful legal documentation to protect both parties.**Cash purchases** remain the most straightforward option for foreign buyers, representing approximately 70% of foreign real estate transactions in Colombia. Cash buyers can often negotiate 5-15% discounts off listed prices and complete transactions within 30-45 days without complex financing approval processes.

It's something we develop in our Colombia property pack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

It's something we develop in our Colombia property pack.

Sources

1. The LatinVestor - Mortgage Colombia Foreigner
2. The LatinVestor - Foreigners Get Mortgage Colombia
3. ExpatFocus - Colombia Property Financing
4. Colombian Visa Services - Buying Property
5. Colombia Law Connection - Buying Property
6. Reddit - Mortgages in Colombia
7. Remitly - Buying Property in Colombia
8. Oikos Constructora - Secure Financing