Car loans surge while home-mortgage balances barely move

Panama's banks are lending more, but not for houses. The Superintendency of Banks (SBP) banking activity report for August 2026 shows the residential mortgage portfolio at about US$20,016 million, slightly below the US$20,050 million of August 2025 (-0.17%). Over the same year, car loans rose 10.44% to US$2,389 million and credit-card balances rose 6.45% to US$2,871 million. Infobae highlighted the split on 1 October 2026.

New credit overall is not the same as the home-loan book. Banks granted US$2,497 million in new credit in August alone, 26% more than the US$1,980 million of August 2025. On the SBP new-credit table, the row labeled Hipoteca, which is not split between residential and commercial, fell to US$981 million for January to August (from US$1,129 million, −13%) and to US$115 million in August (from US$151 million, −24%). That drop is not the residential stock figure above.

Borrowers are paying on time a bit more

The SBP report shows residential mortgages improving on quality: loans in arrears (morosidad) eased from 3.8% to 3.7% of the portfolio, and past-due loans (vencida) from 3.5% to 3.3%, comparing August 2025 with August 2026.

Rates: steady for now

On 2 October 2026, SBP Circular 2026-0101 set the local market reference rate for residential mortgages for the fourth quarter at 6.50%, the same as the third quarter. The underlying calculation crept up from 6.38% (Q3) to 6.46% (Q4) before rounding to the nearest quarter point. This benchmark applies only to loans under the preferential-interest regime of Law 3 of 1985 and its amendments.
For ordinary loans, the average non-preferential mortgage rate was 6.20% in August, down from 6.25% in January, according to SBP statistics analyzed by Nexo. Nexo also notes that US 10-year Treasury yields jumped in September, and that past local rate moves lagged US moves by months.

Bottom line for expats

A slow mortgage market is usually a buyer's market: developers and sellers who depend on bank-financed buyers have more reason to negotiate on price, closing costs, or upgrades. If you plan to finance a purchase in Panama, ask your bank in writing which reference rate it uses, how often it can reset your rate, and how much notice it must give (Nexo, citing the SBP, says a bank can change the rate if it notifies you in writing of the new percentage and start date). If you are only renting for now, the data supports taking your time: there is no sign of a credit rush pushing prices up.

Sources

Superintendencia de Bancos (SBP) - Informe de Actividad Bancaria, August 2026: residential mortgage US$20,016M vs 20,050M (-0.17%); autos +10.44% to 2,389M; cards +6.45% to 2,871M; new credit Aug 2,497M vs 1,980M (+26%); new "Hipoteca" lending Jan to Aug 981M vs 1,129M (-13%), Aug 115M vs 151M (-24%); residential mortgage morosidad 3.8% to 3.7%, vencida 3.5% to 3.3% - https://www.superbancos.gob.pa/documentos/financiera_y_estadistica/estudios/IAB/IAB-0826.pdf
Infobae - Credit accelerates; autos and cards gain; mortgages do not take off (SBP Aug data) - 1 Oct 2026 - https://www.infobae.com/panama/2026/10/01/el-credito-se-acelera-en-panama-autos-y-tarjetas-ganan-terreno-pero-las-hipotecas-no-despegan/
SBP Circular 2026-0101 - Q4 2026 reference rate 6.50% (calculation 6.46%), Law 3 of 1985 loans only - 2 Oct 2026 - https://www.superbancos.gob.pa/documentos/leyes_y_regulaciones/circulares/2026/circular-2026-0101.pdf
SBP Circular 2026-0068 - Q3 2026 reference rate 6.50% (calculation 6.38%) - 30 Jun 2026 - https://www.superbancos.gob.pa/documentos/leyes_y_regulaciones/circulares/2026/circular-2026-0068.pdf
Nexo - Average non-preferential mortgage 6.20% Aug 2026 (6.25% Jan), SBP data; US 10-year at 5.18%; banks may change rate with written notice (SBP) - 25 Sep 2026 - https://nexo.la/bono-eeuu-518-hipoteca-panama/