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Everything you need to know before buying real estate is included in our Colombia Property Pack
Getting a mortgage in Colombia as a foreigner in June 2025 is challenging but not impossible.
While Colombian banks don't explicitly ban foreign applicants, they impose strict requirements that make approval difficult for most non-residents. This guide answers the 12 most critical questions foreign buyers need to know about financing Colombian residential property.
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.
Getting a mortgage in Colombia as a foreigner requires residency status, local credit history, and Colombian-sourced income.
Most foreign buyers end up paying cash or using alternative financing methods due to strict bank requirements.
| Aspect | Details |
|---|---|
| Feasibility | Possible but difficult; requires residency and local ties |
| Key Banks | Bancolombia, Davivienda, BBVA, AV Villas, Banco de Bogotá |
| Residency Required | Yes, in most cases (6+ months minimum) |
| Down Payment | 30-40% standard, up to 50% for some foreigners |
| Interest Rates | 10.37% to 17.75% (most banks 10.4-13%) |
| Loan Terms | 5-20 years (10-15 years most common) |
| Processing Time | Several weeks to a few months |
| Alternative Options | Developer financing, seller financing, cash purchase |
Can foreigners realistically get a mortgage in Colombia in 2025?
Yes, foreigners can technically obtain mortgages in Colombia, but the practical reality is far more challenging than the theoretical possibility.
As of June 2025, Colombian banks approve mortgages primarily for foreigners who have established strong local connections. This includes having residency status, a Colombian credit history, and stable income sourced within Colombia. These requirements create significant barriers for most foreign property buyers.
For recent arrivals or non-residents, getting approved remains extremely difficult. Banks view foreign applicants as higher-risk borrowers due to potential flight risk and difficulty in pursuing collections across international borders. The lack of local credit history compounds this perceived risk.
Most foreign property buyers in Colombia end up paying cash or using alternative financing methods. Developer financing for new construction projects has become particularly popular among foreign buyers who cannot secure traditional bank mortgages.
The situation varies slightly by region, with banks in major cities like Bogotá and MedellĂn being somewhat more accustomed to foreign applicants than those in smaller markets.
Which Colombian banks work with foreigners and what are their requirements?
Seven major Colombian banks currently consider foreign mortgage applications, though approval rates remain low.
Bancolombia, as Colombia's largest bank, leads the market in foreign mortgage applications. They require at least six months of residency and prefer applicants with local business ties. Davivienda has gained a reputation for flexibility with long-term foreign residents, particularly those who have maintained accounts with them for over a year.
BBVA Colombia leverages its international presence to work with foreign clients, though they still maintain strict local requirements. AV Villas currently offers the most competitive rates at 10.37%, making them attractive for qualified foreign borrowers. Banco de Bogotá, Scotiabank Colpatria, and Banco Caja Social round out the options, each with varying degrees of openness to foreign applicants.
Standard requirements across all banks include a Colombian foreigner ID (CĂ©dula de ExtranjerĂa), a valid residency visa (typically M or R type), and at least six months of local bank account history. Banks also require proof of Colombian-sourced income and an established credit history within Colombia.
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Do you need Colombian residency or can you apply without it?
Colombian residency is virtually mandatory for mortgage approval in 2025.
Banks expect foreign applicants to have lived in Colombia for at least six months to several years before considering their mortgage applications. This residency requirement serves multiple purposes: it demonstrates commitment to Colombia, allows time to build local credit history, and provides banks with recourse options if issues arise.
The few exceptions to this rule are extremely limited. Foreigners married to Colombian citizens still need an M-1 visa but may face slightly relaxed requirements. Long-term foreign residents buying primary residences (not investment properties) might find some flexibility, as might applicants with substantial business ties to Colombia.
Without residency, your mortgage application will almost certainly be rejected outright by Colombian banks. Tourist visas, business visitor permits, and other short-term authorizations are completely inadequate for mortgage purposes.
This residency requirement often catches foreign buyers by surprise, as many assume their financial strength in their home country will suffice.
Does marriage to a Colombian citizen improve your mortgage chances?
Marriage to a Colombian citizen significantly improves mortgage eligibility, though it's not a guarantee of approval.
With a legally recognized marriage and an M-1 marriage visa, foreign spouses gain residency rights that banks view favorably. This visa type signals a long-term commitment to Colombia and reduces the perceived flight risk that concerns lenders. Banks often fast-track applications from foreign spouses of Colombian citizens.
However, marriage alone isn't sufficient for mortgage approval. Foreign spouses still need to demonstrate local income documentation, build Colombian credit history, obtain their CĂ©dula de ExtranjerĂa, and maintain stable employment or business operations in Colombia. The marriage provides a foundation but doesn't eliminate other requirements.
Some banks offer special programs for mixed couples (Colombian-foreigner marriages) with slightly relaxed requirements or better interest rates. These programs recognize the additional stability that family ties provide.
Joint applications with the Colombian spouse can further strengthen the mortgage application, as it combines the foreign spouse's international assets with the Colombian spouse's local credit history.
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Which visa types do Colombian lenders accept?
Colombian banks have specific visa requirements that foreign mortgage applicants must meet.
The M-1 migrant visa for spouses of Colombian citizens is widely accepted and often preferred by lenders. The M-10 real estate investment visa creates an interesting circular situation—you need property to get the visa, but banks prefer you have the visa before approving a mortgage. Many buyers resolve this by purchasing a smaller property with cash first.
| Visa Type | Category | Typical Use | Bank Acceptance |
|---|---|---|---|
| M-1 | Migrant (Spouse) | Marriage to Colombian citizen | Widely accepted |
| M-10 | Migrant (Real Estate) | Property investment visa | Accepted with conditions |
| M-11 | Migrant (Pension) | Retirees with foreign income | Limited acceptance |
| R | Resident | After holding M visa for 5+ years | Preferred by banks |
| Special Permits | Various | Humanitarian, work permits | Case-by-case basis |
The M-11 pension visa faces challenges because banks prefer Colombian-sourced income over foreign pensions. R (resident) visa holders enjoy the best mortgage terms, as they've demonstrated long-term commitment to Colombia through their five-year qualification period.
Tourist visas, business visitor visas, and other short-term permits are completely unacceptable for mortgage applications.
What down payment do foreign buyers need—20%, 30%, or more?
Foreign buyers face significantly higher down payment requirements than Colombian citizens.
The standard down payment for foreigners ranges from 30% to 40%, with many banks requiring up to 50% for applicants with limited Colombian credit history. This contrasts sharply with the 20% often available to Colombian citizens with strong credit profiles. These higher requirements reflect banks' risk assessment of foreign borrowers.
Several factors influence the exact down payment percentage. Foreigners with excellent Colombian credit history and stable local income might qualify for the 30% minimum. Most foreign applicants face the standard 40% requirement. New residents or those without local income often must provide 50% down.
For new construction properties, developers offer more flexible arrangements. They typically allow buyers to pay the down payment in installments during the construction period, often interest-free. This can span 12-24 months, making the large down payment more manageable.
Banks calculate the down payment based on the lower of the purchase price or appraised value, which can create additional challenges if the property appraises below the agreed price.
What are current interest rates, loan terms, and repayment options?
Mortgage rates for foreigners in Colombia remain significantly higher than in many developed countries.
As of June 2025, rates range from 10.37% to 17.75%, with most major banks clustering between 10.4% and 13%. AV Villas offers the lowest rate at 10.37%, followed closely by Bancolombia at 10.79%. These rates apply to foreigners who meet all qualification criteria—those with marginal qualifications face even higher rates.
It's something we develop in our Colombia property pack.
Loan terms for foreign borrowers typically span 5 to 20 years, with 10-15 years being most common. Banks rarely offer 30-year mortgages to foreign applicants, viewing shorter terms as risk mitigation. The maximum term often depends on the borrower's age at loan maturity, with many banks requiring full repayment before age 70.
Repayment occurs through fixed monthly payments in Colombian pesos (COP). This creates currency risk for borrowers earning income in USD, EUR, or other currencies. Exchange rate fluctuations can significantly impact the real cost of mortgage payments over time.
Most Colombian mortgages use the UVR (Unidad de Valor Real) system, which adjusts for inflation. This means your peso payments increase annually based on Colombia's inflation rate, adding another layer of complexity for foreign borrowers.
Can you use foreign property as collateral for a Colombian mortgage?
Colombian banks categorically refuse to accept foreign property as collateral for local mortgages.
This policy stems from practical enforcement challenges—Colombian banks cannot easily foreclose on properties in other jurisdictions. Legal complexities, international boundaries, and varying property laws make foreign collateral essentially worthless from a Colombian lender's perspective. The mortgage must be secured exclusively against the Colombian property being purchased.
Foreign property owners seeking to leverage their international assets have limited options. The most common approach involves taking out a home equity loan or line of credit in your home country, then using those funds for your Colombian purchase. This transforms your Colombian acquisition into a cash purchase from the local perspective.
Some buyers refinance foreign properties or secure investment property loans from their home country banks. These international lenders are already familiar with your financial history and can properly evaluate foreign collateral. The proceeds can then be wired to Colombia for the property purchase.
This approach often proves more successful than pursuing Colombian financing, though it requires careful consideration of tax implications in both countries.
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 documents do foreign mortgage applicants need?
Foreign mortgage applicants face extensive documentation requirements that often surprise first-time buyers.
The essential documents start with identity verification: a valid passport with current visa stamps and the Colombian foreigner ID (CĂ©dula de ExtranjerĂa). Banks require residency visa documentation, specifically M or R type visas, along with your Colombian tax ID (NIT/RUT). These foundational documents prove your legal status in Colombia.
Financial documentation includes employment contracts or business registration in Colombia, the last six months of Colombian pay stubs, and Colombian bank statements covering at least six months. Banks scrutinize local credit reports from DataCrédito or similar agencies. They also require professional property appraisals from approved valuators and detailed proof of down payment funds' origin.
Additional requirements often include marriage certificates for those claiming spousal connections, and some banks request international credit reports from your home country. All foreign documents must be apostilled and officially translated into Spanish by certified translators.
The documentation process typically reveals gaps that foreign buyers must address—missing months of bank statements, incomplete employment records, or improperly translated documents can significantly delay approval.
How long does mortgage approval take from application to disbursement?
The mortgage approval timeline for foreigners typically stretches from 6 to 12 weeks, significantly longer than for Colombian citizens.
The process begins with document submission and initial review during weeks 1-2. Banks verify the completeness of applications and often request additional documents during this phase. Credit evaluation and property appraisal occupy weeks 3-4, with banks conducting thorough reviews of Colombian credit history and ordering professional property valuations.
Risk assessment and committee approval during weeks 5-6 represent critical decision points. Foreign applications often face additional scrutiny at this stage, with risk committees evaluating the applicant's ties to Colombia and flight risk. Legal review and contract preparation in weeks 7-8 involve drafting mortgage agreements and ensuring all legal requirements are met.
Final approval and fund disbursement typically occur between weeks 9-12. This extended timeline reflects additional verification requirements for foreign income sources, international document authentication, and enhanced due diligence procedures.
Delays frequently stem from documentation issues—missing apostilles, translation problems, or requests for additional financial information can add weeks to the process.
Why do Colombian banks reject foreign mortgage applications?
Understanding common rejection reasons helps foreign buyers prepare stronger applications.
The absence of Colombian credit history remains the primary rejection reason. Banks cannot assess creditworthiness without local payment history, making first-time foreign applicants particularly vulnerable to rejection. Insufficient residency periods, typically less than six months, signal inadequate commitment to Colombia in bankers' eyes.
| Rejection Reason | Frequency | Prevention Strategy |
|---|---|---|
| No Colombian credit history | Very High | Build history with credit cards, utilities |
| Insufficient residency period | High | Wait 6+ months before applying |
| Wrong visa type | High | Obtain appropriate M or R visa |
| Foreign-sourced income only | High | Establish Colombian income streams |
| Missing CĂ©dula de ExtranjerĂa | Medium | Complete ID process before applying |
| High debt-to-income ratio | Medium | Keep total debt below 30% of income |
Wrong visa types, particularly tourist or short-term business visas, result in automatic rejection. Banks require stable income sources, preferring Colombian-sourced earnings over foreign income. The absence of a CĂ©dula de ExtranjerĂa prevents banks from properly identifying foreign applicants in Colombian systems.
High debt-to-income ratios above 30% concern conservative Colombian lenders. Previous credit problems, even in foreign countries, can surface during enhanced due diligence checks.
What alternative financing options exist if banks reject your mortgage?
Several viable alternatives exist for foreign buyers who cannot secure traditional bank mortgages.
Developer financing has become the most popular alternative for new construction projects. Buyers typically pay 30-40% down in installments during construction, often interest-free. The remaining balance becomes due at completion, though some developers offer extended payment terms. This option works particularly well for pre-construction properties in major developments.
Seller financing allows direct negotiation with property owners. Typical arrangements involve 20-30% down payments with 5-10 year repayment terms at 12-18% annual interest. This option offers more flexible documentation requirements and faster closing times. Sellers motivated by quick sales often accept creative financing structures.
Private or hard money lenders operate in Colombian markets but charge premium rates of 18-24% with shorter terms of 1-5 years. While expensive, they offer quick approval for borrowers with substantial down payments of 40-50%. These lenders focus on property value rather than borrower qualifications.
It's something we develop in our Colombia property pack.
Cash purchases remain the most common method for foreign buyers, eliminating financing complications entirely and providing stronger negotiating positions with sellers.
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.
Securing a mortgage in Colombia as a foreigner requires careful planning, patience, and often creative solutions. While traditional bank financing remains challenging, the Colombian property market offers various paths to ownership for determined foreign buyers.
Success often comes from establishing strong local ties, building Colombian credit history, and exploring alternative financing options when traditional mortgages prove elusive. Understanding these requirements before beginning your property search can save months of frustration and help you make informed decisions about your Colombian real estate investment.
Sources
- MedellĂn Real Estate - Navigating Process Buying Property
- The Latin Investor - Colombia Real Estate Foreigner Guide
- Wise - Buying Property in Colombia
- Colombia Law Connection - Marriage Visa Requirements
- Colombian Visa Services - Visa Types
- MedellĂn Advisors - Funding Real Estate Purchase
- YouTube - Colombia Mortgage Guide
- Primavera Realty - Mortgage in Colombia
- Alejandro Broker - Interest Rates 2025
- Global Property Guide - Colombia Buying Guide
- Colombia Law Connection - Buying Property
- Golden Harbors - Citizenship by Marriage
- Colombia Visas - FAQ
- Colombian Visa Services - Property Buying