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How much does it cost to buy a home with the new mortgage loans and the keys to pay attention to - Infobae
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Cuánto cuesta comprar una vivienda con los nuevos créditos hipotecarios y las claves a las que hay que prestarles atención
Cuáles son los gastos que deben contemplarse, el proceso de escrituración y qué revisar antes de firmar el contrato de la operación
www.infobae.com
May 19, 2024
What are the expenses that must be considered, the deed process and what to review before signing the operation contract
By José Luis Cieri
Who can access mortgage credit and what is the operation for purchasing homes through the new banking options (Andina)
The reintroduction of mortgage loans in Argentina revolutionized the real estate market. There are already 13 banks that offer them, including public entities such as Nación and Ciudad, private entities such as Hipotecario (the first to launch them) and Supervielle, and provincial entities such as those of Córdoba and Corrientes, among others. The schemes tied to the UVA usually propose terms of 15, 20 and 30 years, both for the purchase and expansion and renovation of homes.
To obtain a mortgage loan, you must meet certain requirements: be an employee, self-employed or, in some cases, retired or pensioned (Banco Nación), and not be over 65 years old at the time of maturity. The necessary documentation includes ID, no negative financial history, proof of credit card payments and property records.
Monotributistas need a minimum seniority of one year and the last 3 payments per day. Employees must present the last 3 pay stubs and a work certificate.
In real estate agencies, inquiries to buy homes are increasing due to credit launches, a phenomenon that determined that property values in the city and province of Buenos Aires, which had dropped up to 50% in dollars since 2018, began to appreciate slightly .
The relevant questions revolve around what home buying and selling operations are like through a mortgage line, something that seemed distant until a few weeks ago.
There are several recommendations for an individual or family considering applying for a mortgage loan to ensure they are making a smart financial decision.
Agustín Walger , director of Lepore Propiedades, advised: “The main recommendation that I would give today to anyone interested in a mortgage loan is to understand what their position is regarding their employment situation and in the market in which they are operating. For example, a young man who is a systems programmer, a profession that is in high demand at work, will find credits a more than attractive opportunity, since his profession is in full growth and he will surely have more income or better opportunities in the future.
In addition to the real estate commission, it is recommended to have between 6% and 8% additional to cover all related expenses (Photo: Getty)
Regarding the property to choose, it is important to ask yourself how the interested party will look in the coming years.
“A young person with a good paycheck can comfortably purchase a one-bedroom apartment, but, due to age and job prospects, it may be better for them to try to access a larger unit, such as a divisible 1 and a half room apartment or 2 room apartments. In the short term he might need more meters because he gets together with a partner, and the credits offer an opportunity in this regard. That difference in value prorated over 20 or 30 years may not mean much more in your monthly payment,” Walger added.
It is crucial to choose a manageable quota, as banks generally require a ratio of up to 25% / 30% of demonstrable income.
Daniel Bryn , from Monitor Inmobiliario and partner of Zipcode, told Infobae that “when opting for a UVA loan, the installments and capital are adjusted for inflation, which could cause the installment to rise in a few months more than future income, for example. That is why it is prudent not to reach the allowed limit on the first maturity.”
Key points:
- Review credit conditions: Verify term, interest rate, fee-income ratio and financing percentage in the contract conditions and match what was agreed.
- Understand inflation adjustment (UVA): It is vital to know that the fees will vary according to the Consumer Price Index (CPI).
- Verify additional costs: Consider notary fees, insurance, taxes, fees and stamps, to have the funds for those destinations.
- Confirm property documentation: Such as the title of the property and proof of up-to-date payment of the real estate tax that the bank will then verify to provide confirmation to manage the loan.
“Pre-cancellation clauses must also be understood. “I suggest reviewing the conditions and costs for partial or total early cancellation of the credit,” Bryn added.
Additional expenses include fire insurance, which can be selected by the buyer or contracted with the company designated by the bank.
Among additional expenses, we must bear in mind the release of certificates, procedures, study of titles, taxes and administrative certificates (Illustrative image Infobae)
Bryn explained: “This insurance has a generally low amount. Mandatory life coverage covers the balance of the debt in the event of an accident. In addition, taxes, fees and stamps must be considered, which vary depending on the jurisdiction and include stamps, notarial contributions and registration in the registry.”
Credit folder
The documentation necessary to put together the credit portfolio is divided into two phases: the personal and work phase, established by each credit institution, and the “creditworthy” property phase.The latter includes the real estate reserve, the property title and the approved plans. It is crucial to scan and keep a copy of these documents.
Andrea Rey , notary of the payroll of Banco Nación and the homonymous study, advises contacting a trusted notary to verify the property titles and not signing a purchase and sale ticket until the credit is approved and the reservation is subject to the credit and the study of Titles.
Both the buyer and seller must complete the legal documentation.
Mortgage loan fees, regulated by banks, are usually lower than the 2% tariff plus VAT set by the College of Notaries. These costs include the 3.5% stamp tax in CABA, the subsidized registration fee and other notary expenses.
In CABA, the deadlines are short due to digitalization (less than a month). Houses with mortgage credit do not require prior measurement, but if necessary, a professional must obtain the cadastral certificate. For apartments, the expense certificate is requested from the consortium and, once the documentation is approved, it is coordinated with management for the deed.
Rey stressed the importance of the intervening notaries being in the same jurisdiction as the credit branch, especially in brand new apartments. Territorial competition is key: CABA notaries can only sign in the district, and those from the Buenos Aires province in their party.
Territorial competition is key: CABA notaries can only sign in the district, and those from the Buenos Aires province in their party
Although the College of Notaries sets a tariff of 2% plus VAT, the fees in mortgage credit operations are regulated by banking entities and are usually lower. These costs include taxes such as 3.5% stamps in CABA, subsidized registration fee and other notary expenses.
“The lender will provide a detailed budget before signing, ensuring compliance with all regulations,” Rey clarified.
Expenses in CABA and province
To buy a home in CABA, it is necessary to take into account several additional costs to the amount of the mortgage loan. These include real estate fees, which are 4% plus VAT on the sale value of the property, notary fees that amount to 2% plus VAT, deed expenses that vary between 1% and 1, 5% of the sale value, and the specific expenses of the mortgage, which depend on the bank chosen and the amount requested.
In La Plata, as in other Buenos Aires cities, when buying through a real estate agency, you must pay 3% of the purchase price, while in CABA it is up to 4 percent.
“In the case of a brand new apartment, two notaries will intervene: one designated by the development company to deed all the units of the development, and another from the bank in charge of carrying out the mortgage of the mortgage loan,” Walger explained.
In the province of Buenos Aires, the purchase of homes presents some differences compared to CABA.
Valentín López Gastesi , from López Gastesi Propiedades, explained that when making the purchase through a real estate agency, you must pay 3% of the purchase price, unlike 4% in CABA. Writing expenses usually range between 5% and 7% of the purchase value, in addition to the report on the parcel status, which can cost around 160,000 pesos.
Historically, loans updated by UVA are liquefied in relation to the value of the property; Thus, a debt of 50% of the property value tends to represent less over time.
“In general, mortgages are standard contracts and practically of adhesion , the debtor has no possibility of generating a negotiation with the bank in particular with each case, since it would be impossible to put it into practice,” concluded López Gastesi.
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