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Mortgage loan: how to choose the most convenient one, according to the situation and priorities of the person requesting it - Infobae
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www.infobae.com
December 14, 2024
There are now 23 banks that grant these credit lines, with proposals adapted to different needs.
By Jose Luis Cieri
The loan installment must be between 25 and 30% of the declared monthly income to obtain a mortgage loan and be able to buy your own home (Illustrative Image Infobae)
Choosing a mortgage loan to access your own home involves analyzing several factors such as interest rates, repayment terms, required income and additional costs.
In Argentina, there are four main types of loans: purchase of a single home, acquisition of a second property, construction of a home and renovation .
Each one is designed for different needs, and knowing their characteristics is essential to making an informed decision.
Lisandro Cuello , a real estate expert, told Infobae that “it is exclusively intended for properties for residential use and does not allow the acquisition of properties for commercial purposes. On the other hand, credits for construction and renovation are structured differently, since the money is delivered in stages according to the progress of the work, unlike credit for purchase, which is granted in full at the time of the operation.”
In addition, all these lines of credit are designed so that the installments are similar to the cost of rent, thus encouraging families to access their own home without excessive burden.
Several of the 23 entities that grant them allow combining income with up to two additional co-debtors, such as direct family members, which expands the possibilities for those with tighter salaries.
Most mortgage loans cover up to 80% of the value of the property. This means that the buyer must come up with the remaining 20%, plus the costs associated with the transaction, such as fees, deeds and taxes, which can add up to around $6,000.
Another variable to consider is the type of bank. Public entities usually offer more competitive interest rates, but the approval and disbursement processes tend to be slower.
Private banks, on the other hand, can approve loans in less time, although their interest rates are usually higher.
“This value unit, adjusted according to the cost of construction per square meter, updates the fees according to inflation. If the applicant's income accompanies this adjustment, the fees can remain manageable. However, in cases of unstable income or income that does not keep pace with inflation, the fees can become a financial problem,” Cuello said.
Visit with the intention of buying an apartment. Today, it is common to make more visits to acquire properties with bank leverage (Illustrative Image Infobae)
Applying for a UVA loan can be more convenient if the bank offers low interest rates and early cancellation options without penalties. These features allow for more affordable installments and minimize the impact of adjustments.
Currently, banks offer mortgage lines with rates between 3.5% and 9% plus UVA, with terms ranging from 15 to 30 years.
De Celis stressed that, although UVA credits represent a relief in economic terms, their impact is limited in the face of the country's structural housing deficit.
“Argentina needs at least five years of continuous mortgage financing to begin to reduce this problem. The possibility of financing between 75% and 100% of the value of a home in pesos is key, but it is not enough to resolve a demand of this magnitude,” he said.
Choosing a mortgage loan requires evaluating the conditions offered by each financial institution, the associated costs and the stability of the applicant's income.
Cuello concluded: “A careful analysis of all the variables will allow us to make a decision that not only facilitates access to housing, but is also financially sustainable in the long term.
www.buysellba.com
Source:
Crédito hipotecario: cómo elegir el más conveniente, según la situación y prioridades de quien lo solicita
Ya son 23 los bancos que otorgan estas líneas crediticias, con propuestas adaptadas a distintas necesidades
www.infobae.com
December 14, 2024
There are now 23 banks that grant these credit lines, with proposals adapted to different needs.
By Jose Luis Cieri
The loan installment must be between 25 and 30% of the declared monthly income to obtain a mortgage loan and be able to buy your own home (Illustrative Image Infobae)
Choosing a mortgage loan to access your own home involves analyzing several factors such as interest rates, repayment terms, required income and additional costs.
In Argentina, there are four main types of loans: purchase of a single home, acquisition of a second property, construction of a home and renovation .
Each one is designed for different needs, and knowing their characteristics is essential to making an informed decision.
Types of credits available
The single-home loan is the most accessible due to its longer interest rates and terms.Lisandro Cuello , a real estate expert, told Infobae that “it is exclusively intended for properties for residential use and does not allow the acquisition of properties for commercial purposes. On the other hand, credits for construction and renovation are structured differently, since the money is delivered in stages according to the progress of the work, unlike credit for purchase, which is granted in full at the time of the operation.”
In addition, all these lines of credit are designed so that the installments are similar to the cost of rent, thus encouraging families to access their own home without excessive burden.
Requirements and income combination
The minimum income required to qualify for a mortgage loan varies depending on whether the applicant is applying individually or jointly. For an individual applicant, the required monthly income is around $2,400,000. In the case of couples, both applicants must show a minimum income of $1,200,000 each.Several of the 23 entities that grant them allow combining income with up to two additional co-debtors, such as direct family members, which expands the possibilities for those with tighter salaries.
Most mortgage loans cover up to 80% of the value of the property. This means that the buyer must come up with the remaining 20%, plus the costs associated with the transaction, such as fees, deeds and taxes, which can add up to around $6,000.
How to choose the right financial institution
It is advisable to apply for a mortgage loan at the bank where the applicant has his or her salary account, as this allows access to lower interest rates. In some cases, the difference can be significant, with percentages dropping from 8% to 4.5% for those who receive their salaries from the same bank.Another variable to consider is the type of bank. Public entities usually offer more competitive interest rates, but the approval and disbursement processes tend to be slower.
Private banks, on the other hand, can approve loans in less time, although their interest rates are usually higher.
Are UVA credits worth it?
UVA mortgage loans are an alternative that depends on the stability of the applicant's income.“This value unit, adjusted according to the cost of construction per square meter, updates the fees according to inflation. If the applicant's income accompanies this adjustment, the fees can remain manageable. However, in cases of unstable income or income that does not keep pace with inflation, the fees can become a financial problem,” Cuello said.
Visit with the intention of buying an apartment. Today, it is common to make more visits to acquire properties with bank leverage (Illustrative Image Infobae)
Applying for a UVA loan can be more convenient if the bank offers low interest rates and early cancellation options without penalties. These features allow for more affordable installments and minimize the impact of adjustments.
Market revival
Mortgage loans are showing a revival that has not been seen for six years. According to recent data, more than USD 100 million in UVA loans were granted in September, which allowed for the financing of just over 1,000 operations for 60-square-meter apartments in CABA with 75% financing. “Although it seems like a low number, it is significant after years of no progress in this tool for access to housing,” said Fernando Álvarez de Celis , from the Tejido Urbano Foundation.Currently, banks offer mortgage lines with rates between 3.5% and 9% plus UVA, with terms ranging from 15 to 30 years.
De Celis stressed that, although UVA credits represent a relief in economic terms, their impact is limited in the face of the country's structural housing deficit.
“Argentina needs at least five years of continuous mortgage financing to begin to reduce this problem. The possibility of financing between 75% and 100% of the value of a home in pesos is key, but it is not enough to resolve a demand of this magnitude,” he said.
Additional costs
In addition to the loan fee, the buyer must pay other costs, such as the deed registration, notary and real estate fees, and stamp duty, which can add up to $6,000 in an average transaction of $100,000. Therefore, it is essential to accurately calculate the money available before making the decision.Choosing a mortgage loan requires evaluating the conditions offered by each financial institution, the associated costs and the stability of the applicant's income.
Cuello concluded: “A careful analysis of all the variables will allow us to make a decision that not only facilitates access to housing, but is also financially sustainable in the long term.
www.buysellba.com
