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Mortgage loans: a private estimate projects that loans for home purchases could triple by 2025 - Infobae
Source:
www.infobae.com
January 28, 2025
A private analysis reveals the keys behind the expected increase in the future. Economic factors, new financing policies and greater access to credit are driving applications in banks
By Jose Luis Cieri
More than 68% of mortgage loans are for first homes (Illustrative Image Infobae)
A private report predicts unprecedented growth in the mortgage loan market in Argentina , which could reach historic figures in the coming months. Factors such as economic stability , greater financial accessibility and the interest of families in stopping renting and becoming homeowners are driving this trend, while financial institutions are registering a notable increase in inquiries and requests.
This period of expansion could be consolidated as a turning point for access to home ownership , according to projections by specialists.
Alan Daitch, CEO of Tasa Tasa , a platform specialising in mortgage loans, projects an optimistic outlook for this sector. According to the executive, “the number of mortgage loans granted could triple this year compared to 2024, reaching or even exceeding 30,000 operations.”
Daitch highlighted to Infobae that this growth is a response to the sustained recovery of the banking sector since last year. During October 2024, the latest available data, there was a 4.7% increase in the real balance of total loans, including those adjusted by UVA (Purchasing Value Unit) , a tool that is consolidated as one of the most used by applicants.
In addition, the banking system added 2,300 new mortgage borrowers , a number significantly higher than the monthly average of the last five years. According to Daitch, “most of these loans were computed in UVA, reflecting a growing confidence of borrowers in the financial system.”
Competition between banks and rate adjustment
Competition between banks and the government's intention to reduce its role as the main recipient of funds are two key factors that explain this growth. Daitch said that "rate competition and the implementation of measures such as the relaxation of approval standards for mortgage loans are key to this boom."
Some financial institutions have adjusted their credit lines to offer more affordable installments . For example:
The offer of financing for properties under construction is also growing, a modality that Banco Ciudad has already promoted through UVA loans aimed at well operations .
The impact of controlled inflation is seen as an important pillar for the mortgage market. In December 2024, inflation reached 2.7 % per month , its lowest level in several years. In addition, the Government implemented a “crawling peg” system of 1% per month that will come into effect in February, which could guarantee greater stability for banks and borrowers.
Daitch noted that “the decrease in the crawling peg encourages financial institutions to consider mortgage lines as a profitable alternative to traditional investments.” According to the Central Bank, during December 2024, mortgage loans totaling USD 240 million were granted .
The increase in demand also led banks to reduce loan terms, which went from 30 to 20 years in many entities. The percentage of financing available to new borrowers also decreased. However, these limitations have not stopped the interest of families and investors , who continue to invest in the market.
Another challenge identified by González Rouco is the lack of significant adjustment in the value of the square meter. This could limit the credit capacity of applicants in the long term, especially if property prices continue their upward trend.
The analysis of the relationship between low inflation and the growth of real estate financing projects an optimistic approach in the segment (Illustrative Image Infobae)
In this regard, González Rouco explained that UVA loans allow for more affordable installments as they are linked to inflation, which makes them more manageable for borrowers with current income. However, he added that “it would be more convenient for banks to opt for loans in pesos with fixed and reasonable rates.”
On the other hand, the demand for real estate continues to rise, especially among those looking to buy their first home. According to data from Tasa Tasa, 68% of applications were for the purchase of first properties, while 18% corresponded to second homes. The average term selected is 20 years , with amounts ranging between $45,000,000 and $90,000,000 .
Daitch stressed that “this pent-up demand of years is beginning to be seen in the constant growth of monthly operations and in the increase in property prices.” However, specialists such as González Rouco emphasize that ensuring long-term stability will be key to sustaining this boom. In addition, solid financial regulation will be necessary to maintain confidence in the system and avoid future imbalances.
With financial institutions moving towards a record number of deeds , the next few months will be crucial to consolidate this growth in the Argentine mortgage sector.
www.buysellba.com
Source:
Créditos hipotecarios: un cálculo privado proyecta que los préstamos para adquirir viviendas podrían triplicarse en 2025
Un análisis privado revela las claves detrás del incremento previsto para el futuro. Factores económicos, nuevas políticas de financiación y mayor acceso a créditos impulsan las solicitudes en bancos
www.infobae.com
January 28, 2025
A private analysis reveals the keys behind the expected increase in the future. Economic factors, new financing policies and greater access to credit are driving applications in banks
By Jose Luis Cieri
More than 68% of mortgage loans are for first homes (Illustrative Image Infobae)
A private report predicts unprecedented growth in the mortgage loan market in Argentina , which could reach historic figures in the coming months. Factors such as economic stability , greater financial accessibility and the interest of families in stopping renting and becoming homeowners are driving this trend, while financial institutions are registering a notable increase in inquiries and requests.
This period of expansion could be consolidated as a turning point for access to home ownership , according to projections by specialists.
Alan Daitch, CEO of Tasa Tasa , a platform specialising in mortgage loans, projects an optimistic outlook for this sector. According to the executive, “the number of mortgage loans granted could triple this year compared to 2024, reaching or even exceeding 30,000 operations.”
Daitch highlighted to Infobae that this growth is a response to the sustained recovery of the banking sector since last year. During October 2024, the latest available data, there was a 4.7% increase in the real balance of total loans, including those adjusted by UVA (Purchasing Value Unit) , a tool that is consolidated as one of the most used by applicants.
In addition, the banking system added 2,300 new mortgage borrowers , a number significantly higher than the monthly average of the last five years. According to Daitch, “most of these loans were computed in UVA, reflecting a growing confidence of borrowers in the financial system.”
Competition between banks and rate adjustment
Competition between banks and the government's intention to reduce its role as the main recipient of funds are two key factors that explain this growth. Daitch said that "rate competition and the implementation of measures such as the relaxation of approval standards for mortgage loans are key to this boom."
Some financial institutions have adjusted their credit lines to offer more affordable installments . For example:
- Banco Municipal de Rosario offers rates of 3% per year for 20 years.
- Banco Ciudad presents a 3.5% option exclusively for homes in certain neighborhoods of the Autonomous City of Buenos Aires (CABA).
- At the national level, Banco Nación offers loans with a rate of 4.6% for 30 years.
The offer of financing for properties under construction is also growing, a modality that Banco Ciudad has already promoted through UVA loans aimed at well operations .
Impact of inflation and government policies
The impact of controlled inflation is seen as an important pillar for the mortgage market. In December 2024, inflation reached 2.7 % per month , its lowest level in several years. In addition, the Government implemented a “crawling peg” system of 1% per month that will come into effect in February, which could guarantee greater stability for banks and borrowers.
Daitch noted that “the decrease in the crawling peg encourages financial institutions to consider mortgage lines as a profitable alternative to traditional investments.” According to the Central Bank, during December 2024, mortgage loans totaling USD 240 million were granted .
Challenges
Despite market growth, significant challenges remain. Federico González Rouco , an economist at the consulting firm Empiria and a specialist in the real estate market, warned that interest rates remain high. He noted that “although there is a growing supply of credit, rates have increased between 0.5 and 3 percentage points in recent months, which impacts accessibility.”The increase in demand also led banks to reduce loan terms, which went from 30 to 20 years in many entities. The percentage of financing available to new borrowers also decreased. However, these limitations have not stopped the interest of families and investors , who continue to invest in the market.
Another challenge identified by González Rouco is the lack of significant adjustment in the value of the square meter. This could limit the credit capacity of applicants in the long term, especially if property prices continue their upward trend.
Preferences and future prospects
One of the main characteristics of the current market is the preference for UVA-indexed loans , given that the fixed rates offered by financial institutions remain at prohibitive levels. For example, Banco Provincia offers fixed rates of over 40% per year, which makes initial payments considerably more expensive.
The analysis of the relationship between low inflation and the growth of real estate financing projects an optimistic approach in the segment (Illustrative Image Infobae)
In this regard, González Rouco explained that UVA loans allow for more affordable installments as they are linked to inflation, which makes them more manageable for borrowers with current income. However, he added that “it would be more convenient for banks to opt for loans in pesos with fixed and reasonable rates.”
On the other hand, the demand for real estate continues to rise, especially among those looking to buy their first home. According to data from Tasa Tasa, 68% of applications were for the purchase of first properties, while 18% corresponded to second homes. The average term selected is 20 years , with amounts ranging between $45,000,000 and $90,000,000 .
A promising horizon
The beginning of 2025 marks a time of transformation for access to housing in Argentina , with a mortgage market that is heading towards record numbers. Thousands of families see the dream of owning a home closer , thanks to economic stabilization and better credit conditions.Daitch stressed that “this pent-up demand of years is beginning to be seen in the constant growth of monthly operations and in the increase in property prices.” However, specialists such as González Rouco emphasize that ensuring long-term stability will be key to sustaining this boom. In addition, solid financial regulation will be necessary to maintain confidence in the system and avoid future imbalances.
With financial institutions moving towards a record number of deeds , the next few months will be crucial to consolidate this growth in the Argentine mortgage sector.
www.buysellba.com
