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How much money do you need to earn to apply for a mortgage and buy a home up to $100,000? - Infobae
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www.infobae.com
March 17, 2025
Obtaining a loan requires proof of demonstrable income and compliance with certain criteria. Here are the essential recommendations:
By Jose Luis Cieri
To qualify for a mortgage, you must have an income that significantly exceeds the monthly payment and have a down payment of 20% of the property's price (Illustrative Image: Infobae)
Obtaining a mortgage loan to purchase a home requires proof of demonstrable income and meeting certain financial parameters established by banks.
Since the reintroduction of loans granted by 25 banks, more than 12,000 have been granted nationwide, and in the City of Buenos Aires the average was 1,000 loans per month between October and January , according to the latest records from the Buenos Aires Notary Association.
Property purchases were generally priced at around USD 100,000 for apartments, houses, or townhouses valued at that price.
Eligibility for a mortgage depends on income level, the income-to-income ratio allowed by financial institutions, and macroeconomic stability.
One of the key factors in obtaining a loan is having an income that significantly exceeds the monthly payment. Banks generally require that the payment represent no more than 30% or 35% of the applicant's net household income.
In turn, prior savings are required to cover the down payment, which is usually 20% of the total value of the property.
However, the following additional costs must be taken into account:
The costs of writing include:
"The costs of the deed process are between 4% and 5% of the property's value. The real estate commission is approximately 4%. It's recommended to budget up to 10% to cover expenses and exchange rate fluctuations," explained Lisandro Cuello , a real estate expert.
The following recurring costs should also be considered:
Cuello explained: “The monthly mortgage amounts include several items. It's important to ask the bank for a breakdown of each item and its percentage of the total.”
First installment: $523,600. Minimum income required: $2,094,000.
Values may vary depending on the bank and the type of loan. Furthermore, interest rates may fluctuate depending on economic conditions and the Central Bank's monetary policy.
To finance a home worth USD 100,000, a minimum monthly income of $2,618,000 is required, along with an initial payment of approximately $654,500 per month (Illustrative image: Infobae).
The Buenos Aires province real estate market began 2025 with a year-over-year increase in the number of deeds. In January, 5,749 sales were recorded, 68% more than the 3,422 transactions carried out in the same month of 2024, according to a survey by the Notaries Association of the Province of Buenos Aires.
Mortgage lending also drove mortgage growth. In January, 1,147 loans were signed, representing a 530% increase compared to the 182 mortgages registered in January 2024. Despite this increase, there was a 44% drop compared to December 2024, when 2,049 mortgages were registered, a decrease also explained by seasonal factors.
Guillermo Longhi , president of the Buenos Aires Notary Association, emphasized that "the year-over-year growth in sales reflects a consolidation of the recovery we've seen recently" and stressed that the expansion of mortgage lending is key to sustaining the market's positive trend.
Projections indicate that if inflation continues to decline and macroeconomic stability strengthens, mortgage financing could expand in the coming months.
"This scenario would benefit both buyers and investors, strengthen the revival of the real estate market, and expand the possibilities of access to homeownership," Cuello concluded.
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Source:
Cuánto dinero se necesita ganar para pedir un crédito hipotecario y comprar una vivienda de hasta 100.000 dólares
Obtener el préstamo requiere acreditar ingresos demostrables y no superar determinados parámetros. Cuáles son las recomendaciones esenciales
www.infobae.com
March 17, 2025
Obtaining a loan requires proof of demonstrable income and compliance with certain criteria. Here are the essential recommendations:
By Jose Luis Cieri
To qualify for a mortgage, you must have an income that significantly exceeds the monthly payment and have a down payment of 20% of the property's price (Illustrative Image: Infobae)
Obtaining a mortgage loan to purchase a home requires proof of demonstrable income and meeting certain financial parameters established by banks.
Since the reintroduction of loans granted by 25 banks, more than 12,000 have been granted nationwide, and in the City of Buenos Aires the average was 1,000 loans per month between October and January , according to the latest records from the Buenos Aires Notary Association.
Property purchases were generally priced at around USD 100,000 for apartments, houses, or townhouses valued at that price.
Eligibility for a mortgage depends on income level, the income-to-income ratio allowed by financial institutions, and macroeconomic stability.
Requirements to access a mortgage loan
One of the key factors in obtaining a loan is having an income that significantly exceeds the monthly payment. Banks generally require that the payment represent no more than 30% or 35% of the applicant's net household income.
In turn, prior savings are required to cover the down payment, which is usually 20% of the total value of the property.
However, the following additional costs must be taken into account:
Additional Expenses
The buyer must consider several additional expenses when obtaining a mortgage loan:- Stamp Duty : Varies by jurisdiction, usually between 1.5% and 2% of the property value.
- Bank commission : This may include administrative and appraisal fees, which range from 0.5% to 1% of the loan amount.
- Insurance : Life insurance and fire insurance, which can cost around 0.1% to 0.2% of the annual insured value.
The costs of writing include:
- Notary fees : Approximately 2% of the property value.
- Taxes and registration fees : Around 1.5% of the property value.
- Certification and registration fees : Which may add up to an additional 0.5%.
"The costs of the deed process are between 4% and 5% of the property's value. The real estate commission is approximately 4%. It's recommended to budget up to 10% to cover expenses and exchange rate fluctuations," explained Lisandro Cuello , a real estate expert.
The following recurring costs should also be considered:
- Life insurance : Mandatory to cover the outstanding balance in the event of the policyholder's death. It typically ranges from 0.1% to 0.2% of the outstanding balance annually.
- Fire insurance : To cover property damage, also mandatory. The cost is similar to life insurance.
- Municipal taxes : These may vary depending on the location of the property, but it's important to factor them into your monthly budget.
Cuello explained: “The monthly mortgage amounts include several items. It's important to ask the bank for a breakdown of each item and its percentage of the total.”
Example
With an average annual interest rate of 5.5% and a 20-year repayment term, the approximate requirements for different property values are as follows:- For a USD 100,000 property: Down payment: USD 20,000. Amount to be financed: USD 80,000. First installment: $654,500. Minimum income requirement: $2,618,000.
- For a property worth USD 80,000: Down payment: USD 16,000. Amount to be financed: USD 64,000.
First installment: $523,600. Minimum income required: $2,094,000.
Values may vary depending on the bank and the type of loan. Furthermore, interest rates may fluctuate depending on economic conditions and the Central Bank's monetary policy.
Impact of mortgage credit on the market
The reactivation of mortgage lending has generated greater dynamism in the real estate market. As in Buenos Aires City, this is evident in the increase in deeds sold in the province of Buenos Aires.
To finance a home worth USD 100,000, a minimum monthly income of $2,618,000 is required, along with an initial payment of approximately $654,500 per month (Illustrative image: Infobae).
The Buenos Aires province real estate market began 2025 with a year-over-year increase in the number of deeds. In January, 5,749 sales were recorded, 68% more than the 3,422 transactions carried out in the same month of 2024, according to a survey by the Notaries Association of the Province of Buenos Aires.
Mortgage lending also drove mortgage growth. In January, 1,147 loans were signed, representing a 530% increase compared to the 182 mortgages registered in January 2024. Despite this increase, there was a 44% drop compared to December 2024, when 2,049 mortgages were registered, a decrease also explained by seasonal factors.
Guillermo Longhi , president of the Buenos Aires Notary Association, emphasized that "the year-over-year growth in sales reflects a consolidation of the recovery we've seen recently" and stressed that the expansion of mortgage lending is key to sustaining the market's positive trend.
Challenges and projections for the market
Despite the growth in the number of mortgages, the market still faces structural challenges. Dollar volatility and inflation are determining factors in the consolidation of this trend. Additionally, banks' ability to offer competitive rates ( several banks raised them between November and December ) is key to ensuring access to credit.Projections indicate that if inflation continues to decline and macroeconomic stability strengthens, mortgage financing could expand in the coming months.
"This scenario would benefit both buyers and investors, strengthen the revival of the real estate market, and expand the possibilities of access to homeownership," Cuello concluded.
www.buysellba.com
