• Contact Us


    Your email was successfully sent. Your enquiry will be dealt with as soon as possible.

    Required fields not completed correctly.


Mortgage ‘Investing’ in Costa Rica

In Canada, many investors are enjoying a mortgage investment product called the syndicate mortgage. This type of mortgage allows small investors to obtain the same type of security on their investments as a bank does when they lend money to someone to buy a house. In Syndicate mortgages, investors are given a mortgage on a property that is being developed into a large project like a highrise condo or other type of residential complex.

The benefits are that the investor, who is now the mortgagee, has:

  • a passive real estate investment
  • an investment secured directly to the land and any improvements
  • a determined rate of interest
  • regular income payments coming in just like a bank receives when someone pays on their home mortgage

It’s no wonder that the syndicate mortgage business has been doing so well, so well in fact that some say there is almost too much inventory in the Canadian market.

hmm… (Toronto… 45+ towers under construction…?!)

Well now, Canada is not the only place that this type of investing is available. Now you can also participate in a very similar type of private investing in Costa Rica.

Very much like in Canada and the USA, mortgages in Costa Rica can be for any term, interest rate, amortization period or payment amount that is agreed upon by mortgagor and mortgagee. This form of mortgage used in Costa Rica is the cédula hipotecária. It can be used for investment purposes very much like the syndicate mortgage is done in Canada. This cédula hipotecária consists of certificates registered against the property, and can be in any denomination desired. A $150,000 mortgage could have 15-$10,000 certificates, 2-$75,000 certificates, 150- $1,000 certificates or any other combination desired. The advantage is that it is not necessary to pay full legal expenses to increase or remortgage a property – the cédula hipotecária remains in effect. When a mortgage is paid off the certificates are returned to the owner, who can leave them registered against the property until another mortgage loan is required. The number of certificates required for a new loan would then be given to the financial institution or private investor as their security.

This process gives the investor direct collateral against the land and any improvements on the project or land. In the unfortunate case of default on payments, the certificate holder has first priority in collecting assets, even before the land owners, contractors and project developers. For this reason it provides investors with a wholly secured investment, even better than what can be provided in traditional market investing. Instead of risking your shirt in the unpredictable fluctuations of the stock market through funds and paper, investors have the opportunity to invest in real land that has a real appraisal value. For advice on this type of mortgage ‘investment’ vehicle contact us or watch this short video on how this Costa Rica investment vehicle can help you achieve your retirement goals. Our consultant services for this topic are free.

One thought on “Mortgage ‘Investing’ in Costa Rica