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“The mortgage of the future,” said Caputo: what are divisible mortgages and how does the system that would replace Procrear work?
Source:
www.lanacion.com.ar
November 13, 2024
The new measure that ends the Procrear program was published this Wednesday in the official bulletin; everything you need to know
The Government made official the implementation of divisible mortgages for projects in the wellmanusapon kasosod - Shutterstock
In the midst of a constantly changing real estate market , in which the return of mortgage credit changed the rules of the game, the Government made official on the one hand the dissolution of the trust fund that supported the Procrear housing program; and on the other hand the implementation of divisible mortgages for projects under development . This last measure was published this Wednesday in the Official Gazette through Decree 1017/2024 , which the Minister of Economy Luis “Toto” Caputo called “the mortgage of the future” .
“This is truly a historic milestone for mortgage credit in our country . It will allow financing new and/or non-registered projects via mortgages. Projects that are already in progress, and with a simple deposit,” the minister said on his social networks. He added: “ It is a paradigm shift in the industry , which aims to boost mortgage credit and real estate developments,” while congratulating the Secretary of Territorial Development, Habitat and Housing, Rodrigo Aybar, for the implementation of the project.
Federico Sturzenegger, the Minister of Deregulation and State Transformation, did not want to be left behind, stating that this measure “ is a clear example of the economic freedom promoted by President Javier Milei .”
Houthi rebels attack US aircraft carrier Lincoln in the Arabian Sea
Mortgage credit returned at the end of April this year thanks to 22 banks so that more people can access their own home. However, one of the essential requirements that must be met in order to grant it is that the property in question must have a deed . Therefore, real estate projects under construction and many of the brand new units are left out . “This situation considerably reduces the supply of homes that can be mortgaged, finding that at the national level there are more than 1,300,000 finished homes without a deed and more than 500,000 in the province of Buenos Aires, according to data from the 2022 National Census of Population, Households and Housing,” the Government explained. And they added that this is precisely what “limits access to financing for future works to be carried out by the private sector and restricts the allocation of functional units or plots of land.”
"From now on, the financial system will have the possibility of granting mortgages for the acquisition of units to be built in these complexes. It will also be able to register the tickets in the property registry and negotiate them freely."
LA NACION consulted official sources from the main banking entities to find out the fine print of divisible mortgages, but they clarified that the Central Bank of the Argentine Republic (BCRA) still needs to regulate them to see if it is profitable or not to join the proposal.
Divisible mortgages are a form of mortgage that allows an initial mortgage loan to be divided into several smaller parts.
In this way, instead of a private property being sold with all the associated mortgage debt, it can be divided into units that have portions of the debt , "something that facilitates the sale of these new units without having to cancel the mortgage in its entirety," the Government explained in the official resolution.
A clear example would be the following: a developer builds a building of housing units and finances the project by requesting a mortgage loan. As he sells the apartments, he gets rid of the debt. This means that, by dividing the mortgage, each apartment has its own portion of the debt, which facilitates the sale of units independently, and each buyer only acquires the mortgage for his apartment, without affecting the other owners.
They also clarified that "if the debt balance had been paid prior to the corresponding transfer, the ownership and the real property rights of the functional unit or respective lot will be free of all debt and the mortgage lien duly established."
www.buysellba.com
Source:
“La hipoteca del futuro”, dijo Caputo: qué son las hipotecas divisibles y cómo funciona el sistema que reemplazaría al Procrear
La nueva medida que pone fin la programa Procrear fue publicada este miércoles en el boletín oficial; todo lo que tenés que saber
www.lanacion.com.ar
November 13, 2024
The new measure that ends the Procrear program was published this Wednesday in the official bulletin; everything you need to know
The Government made official the implementation of divisible mortgages for projects in the wellmanusapon kasosod - Shutterstock
In the midst of a constantly changing real estate market , in which the return of mortgage credit changed the rules of the game, the Government made official on the one hand the dissolution of the trust fund that supported the Procrear housing program; and on the other hand the implementation of divisible mortgages for projects under development . This last measure was published this Wednesday in the Official Gazette through Decree 1017/2024 , which the Minister of Economy Luis “Toto” Caputo called “the mortgage of the future” .
“This is truly a historic milestone for mortgage credit in our country . It will allow financing new and/or non-registered projects via mortgages. Projects that are already in progress, and with a simple deposit,” the minister said on his social networks. He added: “ It is a paradigm shift in the industry , which aims to boost mortgage credit and real estate developments,” while congratulating the Secretary of Territorial Development, Habitat and Housing, Rodrigo Aybar, for the implementation of the project.
Federico Sturzenegger, the Minister of Deregulation and State Transformation, did not want to be left behind, stating that this measure “ is a clear example of the economic freedom promoted by President Javier Milei .”
Houthi rebels attack US aircraft carrier Lincoln in the Arabian Sea
Mortgage credit returned at the end of April this year thanks to 22 banks so that more people can access their own home. However, one of the essential requirements that must be met in order to grant it is that the property in question must have a deed . Therefore, real estate projects under construction and many of the brand new units are left out . “This situation considerably reduces the supply of homes that can be mortgaged, finding that at the national level there are more than 1,300,000 finished homes without a deed and more than 500,000 in the province of Buenos Aires, according to data from the 2022 National Census of Population, Households and Housing,” the Government explained. And they added that this is precisely what “limits access to financing for future works to be carried out by the private sector and restricts the allocation of functional units or plots of land.”
"From now on, the financial system will have the possibility of granting mortgages for the acquisition of units to be built in these complexes. It will also be able to register the tickets in the property registry and negotiate them freely."
Federico Sturzenegger
“ None of what is suggested here is an imposition or obligation . It is about expanding the market's operating options. That is why we say that there will be a market for every need, because many times the market cannot provide a solution because the State prevents it. Once the restrictions are lifted, the rest is the responsibility of the private sector. Today, by adding a new underlying asset, the possibilities for financing construction are expanded ,” concluded the Minister of Deregulation and Transformation of the State.LA NACION consulted official sources from the main banking entities to find out the fine print of divisible mortgages, but they clarified that the Central Bank of the Argentine Republic (BCRA) still needs to regulate them to see if it is profitable or not to join the proposal.
Divisible mortgages are a form of mortgage that allows an initial mortgage loan to be divided into several smaller parts.
What are divisible mortgages?
Divisible mortgages are a form of mortgage that allows an initial mortgage loan to be divided into several smaller parts , each associated with a specific portion of the property. This division facilitates the sale or transfer of a portion of the mortgaged property without having to pay off the entire mortgage . This feature is useful mainly in properties that can be divided into fractions or in real estate developments , where a single loan covers several independent units.In this way, instead of a private property being sold with all the associated mortgage debt, it can be divided into units that have portions of the debt , "something that facilitates the sale of these new units without having to cancel the mortgage in its entirety," the Government explained in the official resolution.
A clear example would be the following: a developer builds a building of housing units and finances the project by requesting a mortgage loan. As he sells the apartments, he gets rid of the debt. This means that, by dividing the mortgage, each apartment has its own portion of the debt, which facilitates the sale of units independently, and each buyer only acquires the mortgage for his apartment, without affecting the other owners.
Divisible mortgages: requirements
The decree establishes that the constitutive act of the divisible mortgage must comply with the following requirements :- The ownership of the property must be free of liens or existing liens must be recognized by the creditor ;
- You must have a project that determines the modality of the subdivision , which must include the number, characteristics and purpose of the future functional units or plots of land, which describes the urban development project;
- It must contain the agreement of the parties so that, once the division of the property has been completed and the ownership has been transferred or the real right of surface has been established in favor of each purchaser, the division of the credit and the mortgage guarantee will proceed jointly, which, from that moment, will individually and independently affect each unit or lot or surface for the balance that may correspond to the latter.
They also clarified that "if the debt balance had been paid prior to the corresponding transfer, the ownership and the real property rights of the functional unit or respective lot will be free of all debt and the mortgage lien duly established."
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