Complete Guide to Buying Your First Home in Colombia (2025)

Buying your first home is more accessible than you think

Many Colombians believe they need 100% of the money upfront to buy a home. The reality is different: with subsidies, mortgage credit, and guidance, you can start with a reservation fee of $1 to $5 million COP (approximately $250–$1,250 USD).

Step 1: Know your purchasing capacity

Before house hunting, calculate how much you can pay monthly. The general rule is that your mortgage payment should not exceed 30% of your household income.

Practical example:

Household income: $3,500,000 COP/month (~$875 USD)
Maximum recommended payment: $1,050,000 COP/month
Approximate 20-year mortgage: ~$150,000,000 COP
With subsidies: homes up to ~$190,000,000 COP

Step 2: Identify available subsidies

Mi Casa Ya

The Colombian government program offers:

Down payment subsidy: up to 30 minimum wages (~$39 million COP in 2025)
Interest rate subsidy: reduces your monthly payment for the first 7 years
Requirements: income up to 4 minimum wages, not currently a homeowner, no previous subsidy received

Compensation Funds

If you’re affiliated with Comfenalco, Cajasan, or another compensation fund:

Additional subsidy that can be combined with Mi Casa Ya
Amount varies by salary level
Applies to new housing up to a certain price threshold

Step 3: Apply for a mortgage

Colombian banks offer mortgages for up to 70-80% of the property value. Documents you’ll need:

Employment letter or income certification
Tax declaration (if applicable)
Bank statements for the last 3 months
Identification document
Positive credit bureau report

Tip: Get pre-approval from at least 2 banks before reserving. Rates and conditions vary significantly.

Step 4: Choose your home

With pre-approval in hand, look for new construction. Advantages over pre-owned:

No immediate renovation costs
Subsidies only apply to new construction
Construction warranty by law
Modern finishes and energy efficiency

Step 5: Reserve and sign

Reservation fee: $1M to $5M COP depending on the project
Down payment: 20-30% of the value, paid in monthly installments until delivery
Purchase agreement: legal document securing your purchase
Title transfer: notary signing at the time of delivery

Common mistakes to avoid

Not comparing rates between banks — could mean millions in interest
Ignoring notary fees — budget an additional 2-3% for title transfer
Not checking subsidies before buying — some have deadlines and limited slots
Skipping the in-person visit — always visit the project before reserving
Not reading the purchase agreement — have a lawyer review it

Where to start?

If you’re in Santander, explore our projects to find options that fit your budget. From affordable VIS housing to country homes, we guide you through every step.

Contact an advisor for a personalized assessment of your purchasing capacity.