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After mortgage loans: A bank launches loans for real estate developments for 100% of the investment - La Nacion Propiedades
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Después de los créditos hipotecarios: un banco lanza préstamos para desarrollos inmobiliarios por el 100% de la inversión
Los créditos estarán destinados a constructores y/o desarrolladores inmobiliarios con antecedentes y experiencia comprobables
www.lanacion.com.ar
July 12, 2024
The credits will be intended for builders and/or real estate developers with verifiable background and experience.
By Candela Contreras
Banco Nación announced its line of credit for developers and construction companies financing 100% of the investment
Not only the announcement of the return of mortgage credit revolutionized the real estate sector . Now, a new measure entered the game: Banco Nación announced a line of credit , but this time aimed at construction and development companies .
This announcement comes days after the meeting held by the main representatives of the Chamber of Urban Developers (CEDU) with the Minister of Economy , Luis "Toto" Caputo , in which one of the main topics discussed was the need of the sector for banks to provide financing to developers for construction in pits.
In this regard and within the framework of the “+Hogares” program, the president of the BNA, Daniel Tillard , reported that the loans will contemplate the financing of 100% of the total investment . “After having presented the mortgage loans, we are attending to the other part, which is the supply. It means satisfying the need for credit and, in parallel, that of the supply ,” said Tillard.
He also indicated that "the promise to end inflation must be accompanied by the BNA's promise to expand credit in favor of Argentines ."
Banco Nación loans will finance up to 100% of the total investment
“ The fact that the country's most important bank is putting the real estate market on the front page is a very good sign . From the sector, we take this proposal as positive, especially because of the financing they offer (up to 100%),” said Damián Tabakman, president of the Chamber of Urban Developers (CEDU).
To put things into context, real estate developers in Argentina are not used to financing projects with loans because the lines did not exist; projects are financed with pre-sales, with land swaps or with exchanges with suppliers. “ When a bank enters the business, the business becomes very different: more controlled and more regulated ,” added Tabakman.
The developer also said that “in this case, the bank itself is being considered as the trustee of the project. It is a day-to-day logic that developers in Argentina are unaware of.” He also hopes that other private banks will be infected by these measures and be able to compete with their own products.
As for the expected response from the market, he said that there will not be such a quick change “because banks are not used to lending to developers and developers are not used to accepting them. It will be a process that will take time until it becomes normal : that banks finance projects in Argentina as in other parts of the world,” Tabakman concluded.
In turn, it should be noted that, since the launch of the mortgage credit line , Banco Nación has received 28,666 applications , for an average amount of $81,000,000, of which 19,438 were for the purchase of a first home; 2,693 for a second home; 2,847 for construction; 2,883 for completion and 805 for a change of home. Of the total number of applications, the provinces that registered the highest demand for loans were Buenos Aires with 27.64%, followed by CABA, with 22.12%, Córdoba, 9.86%, Santa Fe, 8.31% and Mendoza, 7.26%.
For his part, Carlos Spina, president of AEV (Housing Business Association) agrees with Tabakman that the news is welcomed by the sector. But he emphasizes that a key point is that “there must be a strong incentive to have loans to demand in progress , otherwise it will not be a reactivator. Because mortgage loans destined for finished or used properties are not the main vehicle to reactivate the economy.”
Specialists agree that the change in the real estate sector will not happen overnight
How do the new loans for construction companies and developers work?
According to the bank, the line of credit is intended for builders and/or real estate developers with proven track records and experience.
Conditions and requirements
- Up to 100% of the total investment will be financed , including the construction of commercial premises and other purposes, provided that 70% of the total constructed area is suitable for financing through mortgage loans in force in the entity.
- The term will be 72 months.
- With BADLAR interest rate + 4 pp This refers to the rate published by the Central Bank and is established for fixed-term deposits greater than one million pesos in private banks.
- There will be a grace period of 12 months from the completion of the last construction milestone and without exceeding 48 months.
- The construction period will be up to 36 months.
A key point is that it will be possible to opt for the creation of guarantee trusts; guarantees from a mutual guarantee company or a public guarantee fund, as well as first-degree mortgages.
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