Mortgage and Financing Options in Ecuador | Moreno di Donato | Estudio Jurídico

Mortgage and Financing Options in Ecuador

Jul 23, 2012 by

Mortgage and Financing Options in Ecuador

Up until recently, mortgage and other real estate loans were not available to foreigners in Ecuador.  Now, The Law Firm of Moreno di Donato is proud to offer financing to all their foreign clients who qualify.  The process is simple and easy and requires only a few documents.  While interest rates in Ecuador are higher than their rock-bottom equivalents in the United States, mortgages loans may be easier to obtain in Ecuador.  Furthermore, the low price of Ecuadorian real estate often makes up for the difference in financing rate.

Please notice that these new financing options are only available through a special deal available from Moreno di Donato and not available to the general consumer.  As a result, there is a fee for this service.

If you would like financing to buy property in Ecuador or build in Ecuador, here are the options we can offer:


Chief among our products is a home mortgage.  This is a regular Ecuadorian mortgage.  We require 30% down and terms can run up to 15 years for repayment.  The interested rate is 10.75% per year, the standard price in Ecuador. You can repay your mortgage at any time with no penalty or extra fee.

What documents will you need to qualify?

1. Passport

2. Permanent Visa–if you don’t have a permanent visa yet, we can organize this for you if you wish.

3. Last three years of tax filings in your country.

4. Credit score in your country.
The property itself can be used for collateral.

Building Loans

We can also offer building loans at the same terms.


Cash Collateral

Also available are “cash collateral” deals.  If you have cash, an IRA, or a 401(k), you may be able to use that cash as collateral.  These deals allow us to offer interest rates of just 7.5%, 30% down, and up to 15 years for repayment.  At the end of the term, you receive all your cash back.  It’s like a retirement account that you pay into and then receive a large cash payout at the end of term.

For a cash collateral deal, no visa is necessary.  The cash can be held in the United States and insured by the FDIC.

Documents required from the seller

In addition to your credit information, the bank will require a number of documents from the seller.  These pertain to the property.  These include the deed and a couple of others that show that there are no utilities owing to the city and so on.  We will provide you with a list of necessary documents and the seller will provide them to you.

We can also supply title insurance, escrow services, and any other legal services you might require.  We can also offer car loans, open bank accounts, and many other financial services.

Benefits of a Loan

There are some clear benefits of going through a bank to buy your home in Ecuador. Firstly, they will make sure that there are no legal irregularities surrounding the property. This danger is completely eliminated by the bank’s legal department, which will thoroughly vet the property before approving your loan.

The bank will also base the amount of your loan on the real value of the property, which they will officially evaluate. This is another advantage, since you will know the real value of the property you are buying and so won’t unknowingly buy overvalued properties.


Fees and other honoraria for the transfer of the title is 2% (approximately). These are standard fees for all transfers of title in Ecuador.  The bank does not charge anything to process the loan.

Our fee for processing the transaction is depends on the nature of the loan and the amount, but runs between 2-3%.   This fee can be included in the amount of the mortgage if you wish.  Payment of this fee takes place once the loan has been officially approved by the bank and before you receive the funds.

The total expenses associated with the loan will be a little under 5%, about what you would pay in the United States.

If you have any other questions or would like to enquire about mortgage loans or other financing options, please don’t hesitate to contact us at

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