Property-Backed Lending in Costa Rica for High-Net-Worth Individuals and Family Offices

For high-net-worth individuals and family offices, a Costa Rica private lending opportunity should begin with one simple question: is the property practical collateral today, and does the loan have a credible repayment and exit plan?

That approach keeps attention on the actual file. A high stated value, a good story, or a familiar borrower is not enough on its own. The security, the loan structure, and the borrower’s plan all need to make sense together.

What lenders can expect from a typical GAP opportunity

Loans are normally discussed around 12% annually and can be higher depending on the individual loan. The rate is not a promise or a fixed site-wide offer. It can reflect the collateral, location, loan-to-value, term, borrower, repayment plan, and the overall file.

Terms generally range from six months to three years. A shorter, documented term can give a lender a clear point to review the file again rather than leaving capital tied up indefinitely.

Principal is scheduled for repayment at maturity under the signed loan documents. If the loan remains proper and the lender is comfortable with the borrower, the lender may choose to continue. If not, GAP can present another opportunity for the lender to consider. Each lender decides whether a particular loan fits their own criteria.

Start with the collateral, not the headline

Property-backed lending is not simply a matter of dividing a requested amount by a seller’s asking price. A practical review can include:

• Title, ownership, and existing liens
• Road access, location, condition, and marketability
• Realistic property value and comparable support
• The requested loan amount, purpose, repayment plan, and exit strategy

GAP focuses on first-position mortgage security. If there is an existing mortgage or lien, it does not automatically rule out a request. It must be clear how a proper first-lien closing structure can be arranged before funds move.

Recorded rights of way, easements, utility rights, and neighboring-use issues also deserve attention. They are not automatically problems, but they can affect access, use, and resale. Lenders should understand them before deciding whether the collateral fits.

Loan-to-value is a discipline, not a promise

Stronger property-backed situations may sometimes support around 50% loan-to-value, depending on the full file. That is not a guarantee and it is not a formula for every property.

Lower loan-to-value requests, often around 30% to 40%, can be easier to structure when the property and file are strong. The real question is whether the lender has sensible coverage against a realistic value—not a best-case value.

Closing structure matters to the lender

Borrowers normally cover legal fees and closing costs, often through the closing structure. Where an existing mortgage needs to be paid off to create a proper first-lien position, that payoff may also be addressed in the closing structure. The details are reviewed case by case.

Closing documents and registration are handled through the appropriate Costa Rica closing attorney or notary. Before a lender commits, the structure should make clear what is being paid, what security remains, and how the first-position mortgage is created.

A complete file supports a better decision

GAP reviews each opportunity individually, not through one automatic formula. A clear file helps explain whether the property is practical collateral and whether the requested financing has a credible repayment and exit plan. It does not create an approval or a promised result.

For a lender, that is the point of the review: understand the property, understand the structure, and decide whether the opportunity fits your own lending criteria.

Speak with GAP about a potential opportunity

If you are a private lender, family office, fund manager, or finance company considering Costa Rica property-backed lending, GAP can help you review whether a particular opportunity merits a closer look. Contact us to discuss your lending criteria and the types of files you may wish to consider.

Article by Glenn Tellier (Founder of CRIE and Grupo Gap)