Banco Industrial, BAM, and BI Banco typically lead on mortgage rates in Guatemala (8-9.5% GTQ, 7.5-8.5% USD reference). Standard down payment is 20-30%; FHG-insured loans can go to 5-10% for first-time buyers under Q500K-Q700K caps. Caveat: closing costs add 4-7%. Always compare CAT not just rate.
A mortgage (prestamo hipotecario) in Guatemala is the lowest-rate consumer credit you can get because the property itself is the collateral. Rates run 7.5-10.5% — roughly half of unsecured personal loan rates and a quarter of credit card APRs. Terms extend 15-25 years, sometimes 30. The market is dominated by 5-6 large banks, and BI Banco (Banco Inmobiliario) is the only one that specializes 100% in mortgages.
Two paths exist: conventional mortgages (20-30% down, no government insurance) and FHG-insured mortgages (5-10% down for income-qualified first-time buyers under property value caps). Most major banks offer both. This page compares 8 banks tracked daily so you can shortlist before applying — a process that can take 60-90 days end to end.
Comparison Table: 8 Banks × Mortgages
Reference rates Q2 2026. Rates depend on down payment, term, currency, and FHG vs conventional. Always verify with bank — closing costs (escritura, avaluo, registro) add 4-7% on top.
| Bank | APR Range (GTQ) | Min Down Payment | Max Term | Max LTV | FHG? | Notes |
|---|---|---|---|---|---|---|
| Banco Industrial (BI) | 8.0-9.5% | 20% | 25 yr | 80% | Yes | Largest mortgage book; full digital app |
| BI Banco (Inmobiliario) | 7.8-9.5% | 15-20% | 25 yr | 80-85% | Yes | Mortgage specialist; competitive on rate |
| BAM (Agromercantil) | 8.0-9.8% | 20% | 25 yr | 80% | Yes | Modern process; fast approval |
| Banrural | 8.5-10.3% | 20-30% | 20 yr | 70-80% | Yes | Strong for rural property purchases |
| G&T Continental | 8.5-10.0% | 25% | 20 yr | 75% | Limited | Mid-tier; better for existing customers |
| BAC Credomatic | 8.5-10.5% | 25% | 20 yr | 75% | Limited | Stricter underwriting; better USD rates |
| Banco Promerica | 9.0-10.5% | 25-30% | 20 yr | 70-75% | Limited | Smaller mortgage book |
| Bantrab | 8.0-9.5% | 15-20% | 25 yr | 80-85% | Yes | Best for public-sector workers via planilla |
USD mortgages typically run 0.5-1.5 points lower than GTQ at most banks (BI 7.5-8.5%, BAM 7.5-9%, BAC 7.5-8.8% reference). Available primarily for borrowers with USD income — banks want to match the loan currency to your income currency to reduce default risk.
How Mortgages Work in Guatemala
A Guatemalan mortgage has four cost components beyond the rate. Understanding each before signing prevents the most common buyer surprises:
- Down payment (enganche). 15-30% of property value paid at closing. FHG can reduce this to 5-10% for qualifying first-time buyers under property caps.
- Closing costs (gastos de cierre). 4-7% of property value, broken down as: escritura publica (notary deed) ~1.5%, registration at Registro de la Propiedad ~1%, IUSI initial ~0.3-0.9%, bank origination fee 1-2%, life insurance + fire insurance setup, and avaluo (appraisal) Q1,500-Q3,500.
- Monthly payment. Principal + interest + life insurance (saldo deudor) + fire insurance. Some banks lump in IUSI quarterly; others let you pay it directly.
- Annual costs. IUSI (property tax) 0.2-0.9% of registered value annually. Some condos add HOA (cuota de mantenimiento). Fire insurance auto-renews.
Total upfront cash needed: down payment + 4-7% closing costs. A Q1,000,000 property at 20% down means Q200,000 down + Q40,000-Q70,000 closing = Q240,000-Q270,000 cash at signing.
Monthly payment math. A Q800,000 mortgage (Q1M property at 20% down) over 20 years:
- At 8.5% APR: monthly Q6,945 (principal + interest)
- At 9.5% APR: monthly Q7,453
- At 10.5% APR: monthly Q7,985
That 2-point spread over 20 years = Q249,600 in extra interest. Shopping rate is even more impactful than on personal loans.
How to Choose a Mortgage
1. Get pre-approval at 2-3 banks before house hunting. Pre-approval (carta de pre-aprobacion) tells you the maximum amount you qualify for and is increasingly required by sellers in competitive markets like Cayala or Antigua. It is free and non-binding. Compare what each bank offers — the same buyer can be approved for very different amounts and rates.
2. Decide currency carefully. Match loan currency to income currency. If you earn quetzales, take a GTQ mortgage even though USD rates look lower — currency risk over 20 years dwarfs the rate difference. If you earn USD (foreign employer, remote work), USD mortgage is fine and saves 1-1.5 points.
3. Compare CAT, not headline APR. The Costo Anual Total includes mandatory life insurance (seguro de saldo deudor), fire insurance (seguro de incendio), and bank origination. A 8.5% APR mortgage with 1.5% origination + bundled insurance can have CAT of 10%+. SIB requires CAT disclosure — demand it in writing.
4. Negotiate down payment vs rate. A larger down payment (30%+ vs 20%) typically unlocks 0.3-0.7 points lower rate. Run both scenarios: Q200K down at 9.5% vs Q300K down at 8.8%. Sometimes the rate savings over 20 years more than recovers the extra Q100K out-of-pocket. Sometimes keeping cash liquid (and earning 6.5% in a CDP) wins.
5. Check the prepayment penalty clause specifically. Some banks charge 1-3% of prepaid principal for years 1-5. Others have no penalty. If you might prepay (inheritance, asset sale, refinance), this clause can swing tens of thousands. Ask: “Hay comision por pago anticipado total o parcial? Hasta que ano?”
6. Ask about FHG eligibility. If your property value is under the FHG cap (typically Q500,000-Q700,000) and you are a first-time buyer with documented stable income, FHG insurance can drop your down payment from 20-30% to 5-10%. The bank determines eligibility based on your application — no separate FHG application needed.
7. Verify the property is “limpio” before applying. Have a lawyer pull a current Certificado del Registro de la Propiedad to confirm: no liens (gravamenes), no embargos, no pending lawsuits, IUSI current, and clear chain of title. Banks require this anyway — paying for it yourself first means you do not waste application fees on a property the bank will reject.
Required Documents
Mortgage paperwork is significantly heavier than other consumer loans:
| Document | Notes |
|---|---|
| DPI (or passport + DPI for foreigners) | Both spouses if married in community of property |
| NIT (tax ID) | Free at SAT |
| Bank statements (6-12 months) | Showing payroll/income deposits |
| Employer letter | Salary, seniority, position |
| IGSS certification | Private-sector salaried |
| Tax returns (declaracion ISR, 2 years) | Self-employed; sometimes salaried |
| Proof of address | Utility bill |
| Escritura de compraventa (proposed) | Or promesa de compraventa |
| Certificado del Registro de la Propiedad | < 30 days old |
| Avaluo (appraisal) | Bank-approved appraiser only |
| IUSI current receipts | Last year proof of payment |
| Fire insurance quote/policy | Required at closing |
Processing time: 30-90 days from application to disbursement. Faster if all documents are clean and the property has no title issues. Foreigners and self-employed typically take longer.
Related Steps
- Get your NIT first — required for any mortgage application.
- RTU registration — required if self-employed.
- Best banks for foreigners — establish the relationship 6-12 months before applying.
- Best banks Guatemala (blog) — head-to-head bank comparison.
- Cost of living in Guatemala — calibrate property value to comfortable monthly payment.
- Personal loans comparison — for renovations after closing.
- Today’s USD/Q exchange rate — relevant for currency choice on the loan.
For Diaspora
Guatemalan mortgages strongly prefer borrowers with DPI and Guatemalan income. As a US-based diaspora member, your realistic paths to financing a Guatemalan property purchase:
- Cash purchase via remittance, then refinance later. If you have the funds in the US, sending the down payment + full price as a wire transfer often beats trying to qualify for a non-resident mortgage. Many properties under Q1M trade entirely in cash.
- Family member as borrower. A parent or sibling with Guatemalan income/residency takes the mortgage; you fund the down payment and monthly via remittances. Use a written agreement and consider putting the title in both names.
- Pre-residency relationship building. Some banks (BI, BAM, BAC) will lend to non-residents at 30-40% down with Guatemalan co-signer if you have a 12-24 month account history at that bank with regular USD inflows.
- US-based home equity loan. If you own US property, a HELOC at 7-9% can fund the Guatemalan purchase outright — often cheaper and faster than a Guatemalan mortgage.
The mortgage closing legally requires your physical presence in Guatemala unless you grant an irrevocable Power of Attorney (Poder Especial Irrevocable) executed at the Guatemalan consulate. Plan for at least one trip during the 60-90 day process.
All rates on this page are reference ranges for Q2 2026. Mortgage rates in Guatemala move with the Banguat policy cycle, US Treasury yields (for USD loans), and bank competition. Always confirm the actual APR, CAT, closing costs, and prepayment clause directly with the bank before signing. Daily scraper coverage: 8 banks × mortgage rates × GTQ + USD × FHG vs conventional.
