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Mortgage loans: BNA increased the loanable amount and added new destinations - La Nacion Propiedades
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Créditos hipotecarios: un nuevo banco amplió el monto disponible y suma nuevos destinos
Por la competencia, los bancos mejoran las condiciones para calificar y prestan más dinero
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September 03, 2024
Through competition, banks improve qualification conditions and lend more money
By Candle Contreras
Banco Nación increased the amount it lends and now also increased it for second home renovationsPhoto by Tierra Mallorca on Unsplash
After five years without mortgage loans in Argentina , 21 banks have already launched their lines of loans , something that until four months ago seemed unthinkable. The announced lines of loans are exciting for the real estate sector since, by increasing the demand for properties because a greater number of people will be able to access their own roof, there will be an increase in housing prices , mainly in areas where the available options are scarce.
Amidst the wave of banks announcing the return of UVA mortgage loans in Argentina, competition among them takes center stage. Therefore, entities are looking for ways to differentiate themselves and attract more clients to grant their loans : Banco Nación improved the conditions of its mortgage line “+Hogares con BNA”.
Although the director of the entity, Alejandro Henke, stated at the Real Estate Expo held in mid-August that “they decided to increase the limit of the amounts to $350 million due to the increase in property prices,” the entity issued a statement explaining that the new maximum loanable value will be 230,000 UVAs ( $261 million to date or US$201,000 at the MEP dollar exchange rate ). Official sources from the entity confirmed to LA NACION that for the moment the latter value will be taken, as expressed in the statement.
Another of the changes introduced is that the destination of second home is incorporated into the destinations of acquisition, change, construction, expansion, refurbishment and construction .
The rate remains at 4.5% as long as clients receive their salaries in the bank, and the “ inflation cap” option remains in effect , with the CVS index. The statement refers to this point in relation to the final rate for the total financial cost (CFT) : it is 4.72% for those cases that have a rate of 4.5% APR and 6.54% APR for those who opt to contract the rate cap through CVS.
Three months after its launch, the entity has already received 40,539 applications , of which some 7,000 are already in the housing search or deed stage. In addition, 87% of these operations subscribed to the CVS index quota cap option. “ Mortgage credit is the true expression of social justice, without it only 5% of the inhabitants who own a home are able to acquire property, while the remaining 95% do so by inheritance and not because they managed to buy it,” said Daniel Tillard, the president of Banco Nación.
21 banks entered the market with their mortgage credit lines GBJSTOCK - Shutterstock
How the “anti-inflation” cap works
The difference that this entity offers in relation to other banks that announced their loans is that clients who receive their salaries through Banco Nación (employees, retirees and pensioners), when they request loans for a single home and permanent occupation, will be able to contract an option that will allow them to put a cap on the installment : "The cap will result from applying an adjustment to the loan through the salary variation coefficient and, only if this adjustment is less than the installment adjusted by UVA, will the cap occur," explains the president of the BNA.The difference in the amounts will be carried over to the end of the loan, updated by UVA , and once the payment schedule is finalized, the resulting balance will be rescheduled. This can be paid with a personal loan or with a mortgage extension. The president of the entity announced that this option has a premium of 1.5% per year. However, “only after 180 days of the loan being disbursed, applicants will be able to choose this option,” he concluded, thus giving debtors time to decide whether they want to take that alternative or not.
Federico González Rouco, an economist specializing in housing, exemplifies this option: a person requests a 30-year UVA mortgage loan with an annual rate of 4.5% .
For its part, the bank calculates two parallel installments with the same initial value : one adjusted by UVA and another by the average salary (CVS). The installment that the user pays is adjusted monthly according to UVA and contracts the “insurance” offered by the entity , so that the user pays a kind of “surcharge” of 1.5% and can choose from month to month - if the UVA installment is greater than the CVS installment - which installment to pay. If you choose to pay the CVS installment, the unpaid balance accumulates at the end of the credit and is cancelled with a personal loan or with an extension of the mortgage.
The loan therefore goes from having an annual rate of 4.5% to 6%. “This means, for a 30-year loan, an extra 20% in the installment. In other words, to determine whether it is worth it or not, you have to take into account that it is at a high cost,” concludes Rouco.
Requirements and conditions to access the mortgage loan from Banco Nación
- The maximum amount is 230,000 UVAs ($261 million to date or USD 201 thousand at the MEP dollar exchange rate)
- Financing is up to 75% of the sale value of the home purchased
- Payment method in UVAs
- The rate is 4.5% for bank customers.
- The ratio of the quota to the applicant's income must not exceed 25%
- The term to request the loan is 5, 10, 15, 25 and up to 30 years.
- The credit is intended for the purchase, change, construction, repair and expansion of first and second homes throughout the country.
- The maximum age to apply for it is not to exceed 85 years at the time of completion of the payment schedule.
- You can add income from the cohabiting family group or from non-cohabiting co-debtors.
In addition to the BNA, three other entities decided to modify and increase their loan amounts since they announced their lines : Banco Ciudad, Banco de Córdoba (Bancor) and Hipotecario.
Banks that improved their conditions
City Bank
Banco Ciudad , like Banco Nación, also increased the lending limit on its mortgage credit lines from $250 million to $350 million.In turn, a key fact is that this Monday, it launched a new line of loans with a new mobility aimed mainly at young people: it allows adding income from guarantors, with a maximum of up to six people .
This initiative aims to allocate loans to those who do not have income or who do not have enough to access the required mortgage loan . In this way, they can gather up to a maximum of two holders per loan and each one can present up to two guarantors , where at least the latter must be active in order to be able to compute the income for the loanable amount. The applicant can provide income if he has it, together with the guarantor ; then the monthly payment of the installment is by debit from the account of the holder and the deed is made in the name of the applicant(s).
Since the launch of its line of credit on April 29, Banco Ciudad has granted more than 50 loans and another 100 loans are about to be signed . In addition, some 400 families with approved loans are looking for property. To date, more than 27,000 inquiries have been received .
These loans have the possibility of requesting an extension of the term if the amount of the installment to be paid exceeds 10% of the value of the installment resulting from having applied to that loan a capital adjustment by the Salary Variation Coefficient (CVS) since its disbursement. In these cases, the original term of the loan may be extended by up to 25% .
Mortgage loans excite the sectorArchive
Requirements and conditions to buy a property with a loan from Banco Ciudad :
- Those who already receive or migrate their salary accreditation to Banco Ciudad can access it
- The credit is to buy, refurbish, improve or expand a first or second permanent or non-permanent home in all areas of influence of Banco Ciudad ( AMBA, provinces of Córdoba, Mendoza, Tucumán and Salta )
- The maximum loan amount is $350 million (up to 75% of the sales value of the unit to be acquired, and for the modality in which the applicant presents a guarantor, the maximum financing amount is up to 65%)
- The general line has an interest rate of 5.5% and a specific line for the microcenter, which has a preferential fixed rate of 3.5%
- The capital is adjustable by UVA
- Terms are up to 20 years
- The fee must not exceed 25% of the applicant's and/or his/her family group's income.
- The credit can be pre-cancelled in advance
Bank of Cordoba
For its part, Banco de Córdoba (Bancor) announced today the increase in the maximum amount of the mortgage loan from $90 million to $273 million , that is, 250,000 Uvas.According to official data, there are about 350 loans in different stages of being signed and more than $4.2 billion granted. In this context, more than 6,500 families have a positive rating.
In the last 30 days, the average daily influx of mortgage applications has tripled: 82% for home purchases and 28% for construction , completion and renovation. On the other hand, the Appto platform for home certification has registered more than 1,500 properties so far this year, with 2,247 houses and apartments available (29% in the interior of the province). This mortgage also contemplates the acquisition of homes through developers and, in this case, they offer the facility of deed registration with a purchase and sale agreement .
Bancor credit requirements and conditions :
- 100% of the purchase of the property or construction and expansion or completion is financed
- The term for financing is up to 20 years
- The capital is adjustable by UVAs with a rate of 4.90% throughout the term
- The maximum quota/income ratio percentage is 25%
Mortgage bank
Banco Hipotecario was the first to launch its mortgage credit lines at the end of April, with a lending limit of up to $250 million. This point was modified by the entity and currently there is no limit on the amount .In addition, the novelty of this entity is that the units of the project being built by Eduardo Costantini , founder of Consultatio, on Huergo Avenue can be acquired with a UVA mortgage loan . This news is a milestone for a real estate market that, until now, did not have the option of acquiring apartments under construction financed in the long term . “You can buy a studio apartment with a down payment of US$35,000 and then there are installments of US$800 or one million pesos that if you rent the property or put it up for managed rent you pay a large part of that monthly commitment,” José Ignacio Viñas, commercial director of Consultatio, tells LA NACION.
Requirements to access mortgage credit:
- The credit is unlimited in amount
- They finance up to 80% of the property to be purchased or built. Up to 50% in the case of a completed project. And 100% for an extension.
- It has a rate of 8.5% for the open market . While for clients who have a salary account , the first 12 installments have a rate of 4.25% and from the 13th installment it is 6.9%
- The maximum payment term is 360 months (30 years)
- The capital is adjustable by UVA
- The monthly fee to be paid cannot exceed 25% of the applicant's income.
- The loan is intended for first and second homes.
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