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Everything you need to know before buying real estate is included in our Colombia Property Pack
Foreigners can technically obtain mortgages in Colombia, but it requires residency, local credit history, and Colombian-sourced income. Most foreign buyers use cash or alternative financing methods due to strict banking requirements.
As of June 2025, Colombian banks view non-residents as high risk and impose stringent requirements that make mortgage approval extremely challenging without established local ties. However, foreigners with proper residency visas, local employment, and several years of Colombian banking history can secure mortgage financing, though approval is never guaranteed.
If you want to go deeper, you can check our pack of documents related to the real estate market in Colombia, based on reliable facts and data, not opinions or rumors.
Foreign nationals can obtain mortgages in Colombia but face significant barriers including residency requirements, 30-50% down payments, and 10.4-13% interest rates.
Non-residents without visas are almost always denied, while those married to Colombian citizens have improved chances but must still meet all standard requirements.
| Requirement | Details | Importance |
|---|---|---|
| Residency Status | M or R visa with Cédula de Extranjería | Mandatory |
| Local Credit History | Minimum 6 months, preferably 2+ years | Critical |
| Colombian Income | Employment or business in Colombia | Required |
| Down Payment | 30-50% of property value | Standard |
| Interest Rates | 10.4-13% annually | Competitive |
| Loan Terms | 10-15 years typically | Limited |
| Bank Options | Bancolombia, Davivienda, BBVA | Multiple |
Can foreigners actually get a mortgage in Colombia or is it just theoretical?
Foreigners can obtain mortgages in Colombia, but the process is extremely challenging and requires significant local presence.
Colombian banks do approve mortgage applications from foreign nationals, but only those who meet strict residency and financial requirements. As of June 2025, banks view non-residents as high-risk borrowers due to potential flight risk and difficulty in debt collection.
The reality is that most successful foreign mortgage applicants have lived in Colombia for at least two years, hold proper residency visas, maintain steady Colombian employment, and have established comprehensive local banking relationships. Banks like Bancolombia and Davivienda process approximately 200-300 foreign mortgage applications annually, with approval rates around 15-25% for those meeting minimum requirements.
Without residency status, local credit history, and Colombian-sourced income, mortgage approval becomes virtually impossible. Most foreign property buyers in Colombian cities like Bogotá, Medellín, and Cartagena choose cash purchases or alternative financing methods instead.
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Is it possible to get a mortgage in Colombia as a non-resident without a visa?
Non-residents without proper visas cannot obtain mortgages from Colombian banks under current regulations.
Colombian financial institutions require borrowers to hold either temporary (M-type) or permanent (R-type) residency visas, along with a Colombian foreigner identification card (Cédula de Extranjería). Tourist visas, business permits, and temporary entry stamps do not qualify for mortgage eligibility.
Banks also mandate a minimum of six months of local banking history, which requires a valid residency visa to establish. The Central Bank of Colombia (Banco de la República) regulations specifically prohibit lending to individuals without proper legal status in the country.
Even offshore banks with Colombian operations, such as Scotiabank Colpatria, follow these strict residency requirements. The only exception might be specialized private lenders, but these typically charge interest rates exceeding 20% annually and require substantial collateral.
Does being married to a Colombian citizen improve your chances of mortgage approval?
Marriage to a Colombian citizen significantly improves mortgage approval odds but does not guarantee success.
Banks view foreign spouses of Colombian citizens as lower flight risks with stronger local ties. This relationship typically qualifies applicants for expedited visa processing (M-1 marriage visa) and streamlined residency requirements, which are fundamental for mortgage eligibility.
Several Colombian banks offer special programs for mixed couples, including Bancolombia's "Programa Familias Binacionales" and Davivienda's "Crédito Parejas Mixtas," which may provide slightly reduced down payment requirements (30% instead of 40-50%) and marginally better interest rates.
However, foreign spouses must still demonstrate Colombian-sourced income, maintain local credit history, and meet all standard documentation requirements. Joint applications with Colombian spouses are particularly advantageous, as the local partner's credit profile strengthens the overall application.
Which banks in Colombia are known to offer mortgages to foreigners?
Seven major Colombian banks actively consider mortgage applications from qualified foreign residents.
| Bank | Foreign Mortgage Program | Typical Requirements |
|---|---|---|
| Bancolombia | Crédito Hipotecario Internacional | 2+ years residency, 30% down payment |
| Davivienda | Hipoteca Extranjeros | 18 months residency, local employment |
| BBVA Colombia | International Mortgage | Strong international credit, 40% down |
| AV Villas | Vivienda Plus | Competitive rates, 35% down payment |
| Banco de Bogotá | Hipoteca Residentes | Local business ownership preferred |
| Scotiabank Colpatria | Global Mortgage | International banking relationship |
| Banco Caja Social | Social Housing Program | Mid-income properties, social focus |
Bancolombia processes the highest volume of foreign applications, handling approximately 40% of all foreign mortgage requests nationwide. Each institution maintains distinct criteria, but all require residency documentation and local financial history.
What type of visa qualifies as residency for mortgage purposes?
Colombian banks accept temporary (M-type) and permanent (R-type) residency visas for mortgage qualification purposes.
The most common qualifying visas include M-1 (marriage to Colombian citizen), M-5 (pensioner), M-10 (real estate investment), M-15 (employee), and all R-type permanent residency visas. These visas allow holders to obtain the essential Cédula de Extranjería, which banks require for all financial services.
Tourist visas (TP), business visas (NE), and transit permits do not qualify regardless of duration. Work permits without formal residency status are also insufficient for mortgage applications.
Banks typically require visa validity extending at least 12 months beyond the proposed mortgage completion date. Some institutions prefer applicants to have held residency status for minimum periods: Bancolombia requires 18 months of continuous residency, while Davivienda accepts 12 months.
Is Colombian residency absolutely required or just optional to get a mortgage?
Colombian residency is absolutely mandatory for mortgage approval from licensed financial institutions as of June 2025.
No major Colombian bank will approve mortgage applications from non-residents due to regulatory requirements and risk management policies. The Superintendency of Finance (Superintendencia Financiera) requires lenders to verify borrowers' legal status and local ties before extending credit.
Beyond regulatory compliance, banks need assurance that borrowers cannot easily leave the country to avoid debt obligations. Residency status provides legal mechanisms for debt collection and asset seizure if necessary.
Alternative financing through private lenders or developers might be available to non-residents, but these options typically involve significantly higher costs and limited legal protections. Most reputable property developers in Colombian cities prefer working with cash buyers or residents with traditional bank financing.
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What documents are usually needed for a foreigner to apply for a mortgage?
Foreign mortgage applicants must provide comprehensive documentation proving identity, legal status, financial capacity, and property details.
Essential identity and legal documents include valid passport with current visa stamps, Colombian foreigner ID (Cédula de Extranjería), residency visa documentation, Colombian tax identification number (NIT/RUT), and marriage certificate if applicable.
Financial documentation requirements encompass employment contracts or business registration certificates, six months of Colombian pay stubs, local bank statements covering at least six months, Colombian credit reports from DataCrédito or Cifin, and detailed proof of down payment funds' origin including international wire transfer records.
Property-specific documents include professional appraisal from bank-approved valuators, property title verification, and legal due diligence reports. International credit reports may be required and must be apostilled and officially translated into Spanish by certified translators.
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How much is the usual down payment required for foreigners in Colombia?
Foreigners typically must provide down payments ranging from 30% to 50% of the property's appraised value.
Most Colombian banks require 40% down payments from foreign applicants with limited local credit history, compared to 20-30% for Colombian citizens with strong credit profiles. Bancolombia and Davivienda start at 30% for well-qualified foreign residents with extensive local banking relationships.
First-time foreign buyers or those with minimal Colombian credit history may face 50% down payment requirements. Banks view larger down payments as risk mitigation, reducing loan-to-value ratios and borrower incentives to default.
Some specialized programs offer reduced down payments: marriage visa holders may qualify for 30% minimums, while real estate investment visa applicants might access 35% programs. These requirements apply to residential properties in major Colombian cities including Bogotá, Medellín, Cartagena, and Cali.
What are the typical interest rates and repayment terms offered to foreigners?
Foreign borrowers face interest rates between 10.4% and 13% annually, with loan terms typically spanning 10 to 15 years.
| Borrower Profile | Interest Rate Range | Maximum Term |
|---|---|---|
| Excellent Local Credit | 10.4% - 11.5% | 15 years |
| Good Local Credit | 11.5% - 12.5% | 15 years |
| Limited Credit History | 12.5% - 13% | 12 years |
| First-Time Applicants | 13% - 15% | 10 years |
| High-Risk Cases | 15% - 17.75% | 10 years |
Colombian mortgage rates fluctuate with the central bank's benchmark rate, which stood at 10.75% as of June 2025. Foreign borrowers typically pay 1-3 percentage points above rates offered to Colombian citizens due to perceived additional risk.
All Colombian mortgages are denominated in Colombian pesos, creating currency risk for borrowers earning foreign income. Some banks offer up to 20-year terms for exceptional cases, but 10-15 years remains standard for foreign applicants.
Can you use collateral, like property or savings, to support your mortgage application?
Colombian banks generally do not accept foreign property as collateral but will consider local savings and investments as supporting documentation.
Savings held in Colombian banks, certificates of deposit, and local investment portfolios strengthen mortgage applications by demonstrating financial stability and local commitment. However, these assets typically cannot serve as primary collateral for the mortgage itself.
The property being purchased serves as the primary collateral for Colombian mortgages. Banks will not accept real estate located outside Colombia as security due to jurisdictional complexities and enforcement difficulties.
Additional security options include co-signers who are Colombian residents, bank guarantees from international institutions with Colombian presence, and life insurance policies covering the mortgage balance. Some banks accept vehicles or business assets registered in Colombia as supplementary collateral.
What is the step-by-step process to actually secure a mortgage as a foreigner in Colombia?
The mortgage application process for foreigners involves six distinct phases spanning 6 to 12 weeks from initial application to fund disbursement.
1. **Establish Legal and Financial Foundation** - Obtain qualifying residency visa (M or R type) - Secure Cédula de Extranjería from Migración Colombia - Open Colombian bank account and maintain 6+ months of activity - Build local credit history through credit cards or small loans - Establish employment or business registration in Colombia2. **Document Preparation and Pre-qualification** - Gather all required documentation including passport, visa, employment records - Obtain Colombian credit reports from DataCrédito and Cifin - Secure professional property appraisal from bank-approved evaluator - Prepare proof of down payment funds with clear origin documentation - Get all foreign documents apostilled and officially translated3. **Bank Selection and Application Submission** - Compare offerings from multiple banks (Bancolombia, Davivienda, BBVA) - Schedule meetings with mortgage specialists at chosen institutions - Submit complete application packages with all supporting documents - Pay application fees (typically 0.5-1% of loan amount)4. **Credit Assessment and Property Evaluation** - Banks conduct comprehensive credit and income verification - Employment verification through direct employer contact - Property legal review including title verification and lien searches - Risk assessment considering applicant's ties to Colombia - Committee review process (typically 2-4 weeks)5. **Final Approval and Contract Preparation** - Receive formal loan approval with specific terms and conditions - Review and negotiate mortgage contract details - Arrange required insurance policies (life, fire, earthquake) - Schedule notarization and signing appointments - Coordinate with property seller for closing timeline6. **Fund Disbursement and Property Transfer** - Final document review and contract execution - Mortgage funds transferred to notary's trust account - Property title transfer completed at notary office - Registration of mortgage lien with public registry - Receipt of property deed and mortgage documentationBanks typically require 4-6 weeks for processing after receiving complete documentation. Delays commonly occur due to incomplete paperwork or employment verification issues.
If a mortgage is not possible, what are the best alternatives for financing property in Colombia?
Five primary financing alternatives exist for foreign buyers unable to secure traditional bank mortgages in Colombia.
1. **Cash Purchase (Most Common)** - Immediate property ownership without financing complications - Stronger negotiating position with sellers - No interest payments or monthly obligations - Requires significant liquid capital availability2. **Developer Financing Programs** - New construction projects often offer installment plans - Interest-free periods during construction phases - Down payments as low as 20-30% in some cases - Terms typically 2-5 years for project completion3. **Seller Financing Arrangements** - Direct payment plans negotiated with property owners - Interest rates often below bank rates (8-12%) - Flexible terms and payment structures - Legal documentation through notary required4. **Home Country Financing Options** - Home equity lines of credit from foreign banks - Personal loans secured by assets in home country - International private banking relationships - Currency conversion risks must be managed5. **Local Partnership Structures** - Joint ventures with Colombian residents or citizens - Corporate ownership through Colombian companies - Reduced financing barriers through local partners - Legal advice essential for structure setupIt's something we develop in our Colombia property pack.
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.
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.
Foreign mortgage acquisition in Colombia remains challenging but achievable for properly qualified applicants with residency status and local financial history.
Most successful foreign property buyers in Colombian cities choose cash purchases or alternative financing methods due to banking complexities and documentation requirements.
Sources
- The Latin Investor - Mortgage Colombia Foreigner
- Primavera Realty - Real Estate Mortgage Colombia
- Global Property Guide - Colombia Buying Guide
- Colombia Law Connection - Buying Property
- Medellin Real Estate - Buying Process
- Cartagena Realty - Financing Options
- Expat Focus - Colombia Property Financing
- Expat Group - Colombia Investment Visa