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How to choose a mortgage loan: keys to comparing terms and rates - Infobae
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February 17, 2025



With rising rates and shorter terms, choosing the right mortgage loan can make a difference of up to 67% on your monthly payment. What factors to prioritize before deciding



By Jose Luis Cieri




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There are different options for buying with credit. It is key to analyze everything in detail (Illustrative Image Infobae)


Choosing a mortgage loan is one of the most important financial decisions for those looking to buy their own home. In a context of rising interest rates ( strong demand prompted some banks to raise rates by 0.5 to 2.8 percentage points ) and stricter conditions from banks, buyers face additional challenges when evaluating options.



In the last three months, financial institutions have shortened financing terms from 30 to 20 years, which has a direct impact on the amount of installments and the accessibility of loans.


The need to compare different banking alternatives becomes key to optimizing costs and avoiding risks.



What factors should be prioritized when choosing a loan?


The Total Financial Cost (TFC) is the first point to consider, as it determines the true cost of the loan in the long term. Simulating the monthly payment and comparing it with the value of a rental in the same area allows us to assess whether the operation is sustainable. The real estate market maintains that a TFC of up to 6% is acceptable and, in some cases, up to 7% can be manageable.

Alan Schachter , a real estate consultant and expert in urban planning, told Infobae : “In addition to the CFT, it is key to analyze the maximum amount financed and the repayment period. Banks such as Nación offer terms of up to 30 years, which reduces the value of the initial payment, while other entities prioritize the percentage of the property they can cover, reaching up to 90% in some cases.”



Comparison of rates between banks


The differences between banks can be significant. Banco Ciudad, with its “Microcentro” line, offers the lowest APR on the market, starting at 3.59 percent.

On a 20-year $70,000 loan, the first installment would be around $497,000 , with a required net income of $2,020,460 .

In contrast, Banco Galicia has a 10.25% APR for the same amount and term, which raises the initial payment to 834,000 pesos. This implies a 67% higher monthly cost. “For that same loan you would pay 67% more just for not changing banks or not choosing the lowest APR,” warned Schachter.

Other banks with competitive rates include:

  • Banco Nación : CFT from 4.70%, term of up to 30 years and financing of up to 75%.
  • Banco Patagonia : APR from 5.54%, with financing of up to 75% and early cancellation free of charge.
  • Banco Credicoop : APR from 5.77%, maximum term of 20 years and 70% financing.

Should I change banks for a better rate?


Yes, the sector confirmed. Several banks require that the client open an account to access loans with better conditions. “It is advisable to open an account in the bank that grants the loan with a lower rate,” explained Schachter.

While this may involve additional paperwork, the difference in the APR can significantly reduce the total cost of the loan.



How to simulate a loan realistically?


When comparing options, it is key to evaluate:



  • Maximum amount financed
  • Return period
  • Funding percentage
  • Possibility of early cancellation without penalty
  • Actual APR of the loan


According to current data, only four banks in CABA offer a CFT lower than 6%:



  • City Bank (from 3.59%)
  • National Bank (from 4.70%)
  • Banco Patagonia (from 5.54%)
  • Banco Credicoop (from 5.77%)


At the other extreme, banks such as Galicia (10.25%) or Hipotecario (10.14%) increase the monthly payment, which can affect the long-term payment capacity.



Example of cost difference between banks


For a loan of USD 70,000 for 20 years:



  • Banco Ciudad (CFT 3.59%) : Initial payment of $497,000.
  • Banco Galicia (CFT 10.25%) : Initial payment of $834,000.



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In addition to the loan amount, it is necessary to have extra money for writing expenses, commissions and mortgage.

This means that opting for a higher rate can cost 67% more per month , which over 20 years represents a difference of thousands of dollars.

Banking options


Below is a comparison of 13 banks in CABA with the most relevant conditions:

1st City Bank



  • CFT : From 3.59% (the lowest on the market)
  • Maximum amount : $350,000,000 (approximately USD 288,000)
  • Maximum term : 20 years
  • Financing : Up to 75%
  • Early cancellation : No charge


2nd National Bank



  • CFT : From 4.70%
  • Maximum amount : $346,299,300 (USD 285,000)
  • Maximum term : 30 years
  • Financing : Up to 75%


3° Patagonia Bank



  • CFT : From 5.54%
  • Maximum amount : $320,000,000 (USD 263,000)
  • Maximum term : 30 years
  • Financing : Up to 75%


4° Credicoop Bank



  • CFT : From 5.77%
  • Maximum amount : $200,000,000 (USD 164,000)
  • Maximum term : 20 years
  • Financing : Up to 70%


Other banks with higher rates:



  • Banco Macro (CFT from 6.86%)
  • BBVA (CFT from 6.79%)
  • Banco Santander (CFT from 7.47%)
  • Banco Galicia (CFT from 10.25%)




How to make the best decision?


Before choosing a mortgage loan, it is essential to compare the APR between banks, evaluate the installment-income ratio and simulate different options to know the real impact on personal finances .

Schachter concluded: “Interest rates can change over time, so it is key to stay informed about updated conditions and consider opening an account at another bank to access better conditions.”



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