Published on and written by Cyril Jarnias
Buying an apartment in Miraflores, a family home in Arequipa, or a small rental building in Lima almost always involves getting a loan. However, real estate financing in Peru operates under rules, public programs, and banking constraints that are very different from most European markets. With interest rates around 7% to 11%, down payment requirements, state aid programs like MiVivienda or Techo Propio, and specific legal considerations for foreigners, the process can quickly become opaque.
This practical guide, based on current data and regulations, explains the steps to get a mortgage loan in Peru, whether you are a Peruvian resident or a foreign investor.
Understanding the Mortgage Loan Context in Peru
Before even talking about a loan application, you need to understand the playing field: how the banking system works, the level of interest rates, and the role of mortgages in the Peruvian economy.
The Peruvian banking system is supervised by the Central Reserve Bank of Peru (Banco Central de Reserva del Perú, BCRP) and the Superintendency of Banking, Insurance and AFP (SBS). The monetary environment directly influences mortgage loan rates.
Average interest rate for mortgage loans in soles in 2024, after a series of cuts to the benchmark rate.
Mortgage lending is also underdeveloped compared to other countries in the region. The mortgage portfolio represented approximately 6.3% to 6.7% of GDP in 2024, compared to nearly 28.5% in Chile. In concrete terms, less than 3% of Peruvian households have a mortgage loan, which illustrates the importance of cash purchases, but also the room for market growth.
The housing loan portfolio in Peru as of November 2024, in billions of soles, showing annual growth of around 5%.
The macroeconomic environment, however, is rather favorable in the medium term: GDP growth around 3% in 2024 after a slight recession in 2023, inflation back around 2%, unemployment at 5.7%, and housing still relatively affordable with a national average price around $180,000, well below major regional cities. In the background, a deficit of nearly 2 million homes sustains strong structural demand, particularly in intermediate and popular price ranges.
Where to Find a Mortgage Loan in Peru
Mortgage lending is concentrated among a few large generalist banks, specialized institutions, and a number of small credit companies. In 2025, there were about 75 active mortgage lenders in the country, with strong concentration in Lima and its outskirts.
Among the leading players, several universal banks dominate the residential segment:
| Bank / Institution | Type of Actor | Notable Particularities |
|---|---|---|
| Banco de Crédito del Perú (BCP) | Country’s 1st bank | Wide range of mortgages in soles and dollars |
| BBVA Perú | 2nd bank, subsidiary of BBVA group | Strong focus on social and green housing |
| Scotiabank Perú | 3rd bank | Credit in local and foreign currency |
| Interbank | 4th bank | Mainstream mortgage products |
| Banco de la Nación | State Bank | 5th commercial bank, primarily public role |
| BanBif, Banco Pichincha, GNB, etc. | Commercial banks | More targeted and sometimes niche products |
| Mibanco | Microfinance bank | Targets informal households and SMEs |
Alongside these giants, there are numerous credit unions, municipal savings banks, and financial companies. Some mainly act as intermediaries or refinancers for products subsidized by the public fund Fondo MiVivienda. Others operate locally with more flexible approaches.
The geographical distribution of lenders confirms the predominance of the capital, while revealing a significant and active network in the provinces.
| City / District | Number of Mortgage Actors | Share of National Total |
|---|---|---|
| Lima | 8 | 10.7% |
| Santiago de Surco | 6 | 8.0% |
| Huancayo | 5 | 6.7% |
| Miraflores | 4 | 5.3% |
| San Martín de Porres | 4 | 5.3% |
| Arequipa, Chiclayo, San Isidro, San Juan de Lurigancho, Tacna (each) | 3 | 4.0% each |
Some smaller providers stand out due to their specialization or reputation, with varying online ratings. They can represent an alternative solution for atypical profiles, but their terms are often more expensive and their products less standardized than those of large banks.
For very large international portfolios, players like J.P. Morgan Private Bank can structurally finance properties in Peru as part of a global wealth strategy, with conditions reserved for portfolios of several million dollars.
Interest Rates and Mortgage Loan Conditions
Even if banks don’t always clearly communicate their rate charts, the main market trends are well documented.
For a typical 20-year mortgage loan, rates offered by BCP, BBVA Perú, Scotiabank or Interbank are generally between 7% and 11% in local currency. Aggregate statistics show an average housing loan rate around 7.4% in soles in late 2024–2025, slightly lower—around 6.3% to 7.4%—for loans in foreign currency. The recent record low was 6.6% in 2022, while the modern-era peak was over 17% in the early 2000s.
A gap is observed between standard loans and those benefiting from public aid or “green” criteria. For example, for certain BBVA Perú products, rates dropped from 9.1% to 8.7%, with a prospect of approaching 8% thanks to subsidies from the MiVivienda Verde program.
More broadly, the cost of credit in Peru remains high compared to advanced economies. The average rate for bank loans of all categories exceeded 15% in 2025, although this figure includes high-rate consumer loans and riskier business loans. Conversely, remunerated deposits were around 4.2%, leaving banks with a comfortable intermediation margin.
The standard conditions for mortgage loans include a few constants:
The repayment term is generally 20 to 25 years, and can go up to 30 years for some products. Financing can cover up to 80% of the property value for a primary residence, but is often limited to 70% for a second home or rental investment. Institutions usually require that the monthly payment does not exceed about 30% of the household’s monthly income. Finally, a minimum personal down payment of 20% to 30% is required, and this percentage can be higher for foreign borrowers or profiles considered riskier.
For borrowers in the informal sector or with a fragile credit history, rates can rise sharply, particularly on unsubsidized or microfinance products, with isolated examples of rates approaching 40% in local currency on housing-related loans. These offers should not be confused with standard mortgages from major banks, but illustrate the cost of money for households excluded from the classical system.
Major Public Housing Finance Programs
One of the specifics of the Peruvian market is the central role played by the State in financing homeownership for low and middle-income households. This system is based on a scheme called “Ahorro–Bono–Crédito” (Savings–Subsidy–Credit), better known by the acronym ABC.
The principle is simple: the household must build up prior savings, the State provides a direct subsidy, and a financial institution completes it with a mortgage loan. Two major programs structure this ecosystem: Nuevo Crédito Mi Vivienda and Techo Propio. Both are managed by the Fondo MiVivienda (FMV), a public institution attached to the Ministry of Housing, Construction and Sanitation (MVCS).
Nuevo Crédito Mi Vivienda and the Bono del Buen Pagador
The Nuevo Crédito Mi Vivienda (NCMV) program targets the lower-middle and middle class. It finances the purchase of new homes within a defined price range, generally between approximately 57,500 and 479,300 soles, roughly $15,000 to $128,000.
Financing is based on a bank loan supplemented by a bonus, the ‘Bono del Buen Pagador’ (BBP). This bonus reduces the principal to repay or the monthly payments, allowing households with limited incomes to keep their housing costs below the 30% of income threshold.
In 2020, the value of these bonuses was increased by 10 to 40% depending on price brackets, to support demand during the pandemic. An illustrative example shows that a 90,000-sol home becomes 12% cheaper in monthly payments with the new bonus amount compared to the old system. Several analyses recommend making these revalued amounts permanent, as they significantly improve household solvency.
For the most vulnerable groups (elderly, disabled, returning migrants), an « Integrator Bono del Buen Pagador » was created in 2024, with an additional subsidy of about $895, further reducing the remaining amount to finance.
Techo Propio and the Bono Familiar Habitacional
Techo Propio targets low-income households, often without formal housing, and aims for construction, purchase, or improvement of a home. At the heart of this program is the Bono Familiar Habitacional (BFH), a non-reimbursable subsidy intended to cover a significant part of the housing cost.
The typical amounts announced for different types of projects or services are presented below.
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Analysis and recommendations to optimize your project.
| BFH Use Type | Maximum Amount (PEN) | Approximate Equivalent (USD) |
|---|---|---|
| Purchase of new home | 46,545 | 12,400 |
| Construction on own land | 32,100 | 8,550 |
| Improvement / expansion | 12,305 | 3,280 |
In many cases, the combination of the BFH and a small complementary loan makes a project possible that the household could never have financed alone. The program targets basic but compliant homes meeting safety and sanitation standards, helping to reduce the huge qualitative deficit in Peru’s housing stock.
Other Public Housing-Related Products
Several specialized products revolve around these pillars:
– Micasa Más: loan for families who already own a home and want to expand or improve it, for amounts between 45,000 and 270,000 soles.
– Mi Construcción: loan to build, expand, or rehabilitate a home, up to 100,000 soles.
– MiTerreno: financing up to 50,000 soles for the purchase of urban land intended for housing construction.
These products are not, strictly speaking, subsidies, but they are designed with social criteria and target mostly low- or middle-income households, often as a complement to public bonuses.
The Fondo MiVivienda acts as a second-tier bank by refinancing mortgage loans granted by commercial banks and managing subsidies. In 2023, it financed about 17% of the country’s total mortgage loans and administered over $300 million in subsidies annually. The remaining loans are carried by banks with their own resources.
Focus on “Green” Housing: MiVivienda Verde and BBVA
The ecological transition has also entered real estate financing. The MiVivienda Verde program finances resource-efficient housing, with a requirement for at least 20% reduction in energy, water, and material consumption compared to a standard building. Construction certified under the EDGE standard (developed by the International Finance Corporation) is particularly highlighted.
BBVA Perú was a pioneer in this niche with its « Green Mortgage Loan »: in 2022, 60% of its mortgage and real estate portfolio already consisted of certified sustainable projects. The bank offers “green bonuses” ranging from 11,000 to 25,000 soles depending on the financed amount, in addition to public programs, and has been recognized as the first « EDGE Champion » in Peru’s banking sector. According to estimates, these buildings reduce household water and electricity bills by about 30%, a significant argument for long-term solvency.
How Banks Assess a Loan Application
Beyond public programs, access to mortgage credit in Peru remains heavily conditioned by classic banking criteria: repayment capacity, income stability, and past financial behavior.
The main elements scrutinized by credit institutions are as follows.
Income, Employment, and Debt Capacity
Banks most often require that the monthly loan payment does not exceed 30% of the household’s monthly income. To achieve this, they ask for:
– for salaried employees: an employment contract, recent pay stubs (usually for the last three months), and sometimes an employer statement mentioning seniority (often at least one year);
– for self-employed workers: tax returns and financial statements for the last three years, proof of social security and VAT payments, and any document to assess the regularity of the activity.
The informal economy rate in Peru, which excludes a majority of households from traditional mortgages.
Credit History and Banking Behavior
An application with no incidents reported to credit bureaus (such as Infocorp) is a prerequisite. Banks consult these databases to check for any payment defaults or disputes. A positive credit history in Peru, even through a simple bank card or a small consumer loan, can subsequently facilitate obtaining a mortgage.
For foreigners, institutions may require a credit report from the country of origin or, failing that, rely on the operating history of a local account with regular deposits over a period of 6 to 12 months.
Essential Documents
The exact list varies by bank, but the following are always required:
To obtain a mortgage loan in Peru, it is necessary to provide a complete set of documents. This includes a valid ID (DNI for Peruvian residents, passport for foreigners) and, if applicable, proof of resident status (Carné de Extranjería). Proof of income (pay stubs, tax returns, etc.), bank statements (often for three months), and a credit history report are also required. Finally, documents related to the property (title deed, promise of sale…) and proof of availability of personal funds and money for taxes and fees must be presented.
Banks reserve the right to request additional documents, including marriage certificates or cohabitation certificates when the property is acquired by a couple, or statements on the origin of funds for anti-money laundering authorities.
The Special Case of Foreigners: Rights, Constraints, and Strategies
For a non-resident, accessing real estate financing in Peru is possible, but significantly more complicated than for a local.
Property Rights and Legal Framework
The Peruvian Constitution (Article 71) grants foreigners the same property rights as citizens, with one major exception: they cannot own land, mining, forestry, water, fuel, or energy-related assets within a 50-kilometer strip along the borders, unless a special exemption is granted for public utility reasons.
Acquiring a property does not confer residency status or citizenship. However, it can contribute to obtaining an investor visa when the amount exceeds $100,000, paving the way for temporary, and then permanent residency after a few years of legal presence.
All real estate transactions must be registered with the SUNARP. For a mortgage to be valid and enforceable against third parties, its registration in the real estate registry is a mandatory condition.
Credit Conditions for Foreigners
In practice, most banks prefer residents with stable local income. Non-residents are far behind in the risk hierarchy, which translates into:
– higher down payments (20% to 50% of the price, sometimes more);
– shorter loan terms (often 7 to 20 years);
– rates 1 to 3 percentage points higher compared to comparable local clients;
– in-depth scrutiny of the origin of funds and tax situation.
To strengthen a residency application, it is advisable to obtain a Carné de Extranjería, open a local bank account, and route regular income through it for several months. Providing tax returns from your home country and, if necessary, seeking assistance from a law firm specializing in these procedures can also significantly strengthen the application.
The banks that most willingly finance foreigners are generally BCP, BBVA, Scotiabank, and Interbank. Some credit unions or municipal savings banks may intervene occasionally, but often with less attractive terms.
Alternatives to Local Credit
Given the difficulty of obtaining a loan locally, the majority of foreign buyers (sometimes estimated at 85% to 90%) pay cash, either from their savings or via a loan taken out in their home country. Others use family-group financing or international wealth structuring, for example by approaching a foreign private bank.
Another option is to join a real estate development project that offers staggered payment plans over several years, without going through a real bank mortgage, but with deferred transfer of ownership. These schemes, however, remain contractually complex and require rigorous legal due diligence.
The Real Cost of a Financed Purchase: Taxes, Fees, and Charges
Securing financing is only part of the equation. In Peru, the additional costs related to buying, registering, and owning the property can represent between 7.1% and 9.75% of the price, combining the seller’s and buyer’s shares.
On the buyer’s side, you must budget at a minimum: sufficient funds, a financing plan, verification of legal documents, property appraisal, and negotiation of purchase conditions.
Rate of the Alcabala tax on the commercial value of a property in Peru, with some exemptions.
In addition, for new homes sold by developers, there is an 18% VAT (IGV) on the “construction” portion. Sellers pay the real estate agency commission (3% to 5% of the price) and, if applicable, a 5% capital gains tax on the profit if it is not their primary residence or a property acquired before 2004.
Once you are an owner, you must pay the municipal property tax (Impuesto Predial) each year, the rate of which is progressive and varies between 0.2% and 1% of the property’s cadastral value. You must also pay municipal service fees (Arbitrios), which cover services like public lighting, cleanliness, or green space maintenance.
In this configuration, the personal down payment must therefore cover not only the unfinanced portion of the price, but also all fees and taxes, otherwise the financing structure becomes unbalanced.
Social Issues: Housing Deficit and the Role of Credit
Behind the rates and pricing charts, mortgage lending in Peru is a central instrument of public policy in the face of a massive housing deficit. There are about 3 million urban households in a deficit situation, with only 5.7% due to lack of housing (quantitative deficit) and over 31% due to unsanitary, overcrowded, or service-deprived homes (qualitative deficit).
Percentage of urban housing built by households themselves, often without permits or technical support.
The MiVivienda and Techo Propio programs still only cover a fraction of the needs. Less than 9% of the annual demand for urban housing is offered a formal solution, even though 190,000 of the 260,000 new homes needed each year concern low- and middle-income households. FMV loans to families earning less than four times the minimum wage represent only a little over 23% of its portfolio, while this group constitutes more than 70% of urban households.
Amount in millions of dollars of the IDB loan to broaden low-income households’ access to housing credit.
Legal Security and Guarantees: What’s Behind the Mortgage
From a strictly legal perspective, a mortgage in Peru is a real security on a property, covering the land, existing buildings and future improvements, as well as insurance indemnities in case of damage. There is no legal distinction between the land and the building: everything is covered by the same guarantee.
The mortgage must be created by notarial deed and registered in the SUNARP real estate registry. It is possible to register several mortgages on the same property, with a priority order determined by the registration date. However, privileged creditors, including tax authorities and employees, may take precedence over banks in case of liquidation.
The law allows various security structures, including blanket mortgages for future obligations and security trusts using a trust. It is also possible to assign or pledge the rental income of a building (via assignment of receivables, antichresis, etc.) as well as bank account balances.
In case of default, the normal route for enforcing the mortgage is judicial foreclosure, ending in a public auction supervised by a court. This procedure can take three to four years, or even longer, which explains why banks are cautious in granting credit and prefer applications with controlled risk.
Key Points to Prepare a Real Estate Financing Project in Peru
Ultimately, obtaining real estate financing in Peru involves combining three dimensions: personal borrowing capacity, available public programs, and the reality of a market still largely dominated by cash payments.
For a Peruvian resident or an already established foreigner:
To obtain a mortgage loan, it is crucial to quickly build savings for the down payment (20% to 30%), build a local banking history, and check eligibility for the MiVivienda or Techo Propio programs, including their ecological versions. Compare offers from major banks (BCP, BBVA, Scotiabank, Interbank) based on the TCEA (total effective cost) and not just the nominal rate, and integrate all taxes and fees (property tax, capital gains, rental taxation) into the financing plan.
For a foreign investor without residency:
Accept that obtaining local credit is possible but uncertain, often more expensive and slower. Consider financing in your home country or a cash purchase if local conditions are not satisfactory. Use a specialized lawyer to secure the process, especially with complex land titles or projects in sensitive areas. Keep in mind that in Peru, about 80% of transactions are concluded in cash or by certified wire transfer, giving a clear advantage to buyers without a financing contingency clause.
The Peruvian real estate market remains, in many ways, a market in transition: still under-financialized, with a massive housing deficit and high informality, but driven by a growing urban middle class and increasingly structured public policies. In this environment, mortgage credit is both a tool for accessing housing and a powerful social filter. Understood and handled well, it can become a lever of opportunity, provided you respect the local rules of the game and build a carefully budgeted project.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
