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Mortgage loans: Can a UVA loan be paid off early? - La Nacion Propiedades
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Créditos hipotecarios: ¿se puede cancelar un préstamo UVA antes de tiempo?
Las diferentes entidades bancarias tienen sus propias políticas respecto a la cancelación anticipada de créditos hipotecarios
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March 17, 2025
Different banking institutions have their own policies regarding the early cancellation of mortgage loans.
By Candela Contreras
UVA mortgage loans have returned to the market thanks to 24 banks: details on how to prepay. Shutterstock
In the current scenario of real estate market reorganization with the return of UVA mortgage loans , supported by 24 banks, loan inquiries and transactions are on the rise. A key indicator of this increase can be seen in the number of mortgage sales transactions carried out each month . For example, in January of this year , although the total number of deeds fell by 52.5% compared to December 2024, with 3,645 transactions recorded, 26% of them were carried out with a mortgage, demonstrating that credit continues to drive activity in the sector.
In this way, in a country characterized by having an unstable economy where inflation can have significant jumps , despite the fact that it is currently moderate and in a process of deceleration, many of those who are thinking about taking out a loan to buy their own home, wonder if they have to be paying the loan for so many years (20 or 30 years) or if there is the possibility of advancing installments or canceling it early if they want to.
This is an important fact to keep in mind because the mortgage loans currently in force are in UVAs (Purchasing Value Unit), that is to say that the capital by which the installments are adjusted are calculated in UVA , the unit that is based on the Reference Stabilization Coefficient (CER), which in turn is based on the Consumer Price Index (CPI) and is adjusted daily for inflation .
While paying off debt early may seem like a convenient strategy to reduce interest payments and a potential spike in inflation , the truth is that most banks impose penalties for this type of transaction.
Is it possible to cancel a mortgage loan early? Yes, mortgage loans are prepayable . Additionally, you can request an extension of the loan term if the monthly payment exceeds 10% of the amount adjusted by the Salary Variation Coefficient (SVC) since its disbursement. In these cases, the loan term can be extended up to 25% of the original term , according to financial institutions.
Most banks impose penalties for prepaying a loan.Daniel Basualdo
What are the conditions imposed by banks?
Each bank has its own policies regarding early repayment of mortgage loans , these are:Banco Nación : If the total or partial cancellation occurs before a quarter of the credit term has elapsed, a 4% commission plus VAT will be charged.
Banco Ciudad : Allows partial or total early cancellations. In the case of partial cancellations , the minimum amount to be paid is equal to one installment and will be applied to the reduction of the principal owed. Customers can choose to reduce the term while maintaining the same installment amount, or reduce the amount while maintaining the same term .
For full cancellations , no fee will be charged if at least 25% of the original loan term has elapsed or 180 days have passed since the loan was granted.
BBVA : charges 3% plus VAT on the debt balance if partial or full repayment is made before 25% of the total agreed term or within 180 days of settlement. After this time, repayment is free.
ICBC : A 3% fee plus VAT applies to the prepaid amount if the transaction is made before 25% of the original loan term or 180 days have elapsed since the loan was granted.
Galicia : It is the only bank where you can cancel your loan, either partially or totally , free of charge starting with the first installment .
Supervielle : Early cancellation is possible, both partially and fully. When making a partial cancellation, the customer can choose between maintaining the term and reducing the installment amount, or maintaining the installment amount and reducing the term. Each time the customer makes a partial cancellation, they can choose either option, keeping in mind that the term once reduced cannot be extended. The cost for early cancellation is 4% plus VAT on the principal amount cancelled.
Patagonia : You can cancel the loan in full or in part at any time during the term of the loan. A 2% fee + VAT will only be charged on the principal amount repaid if a quarter of the original loan term has not elapsed.
Comafi : 4% plus VAT applies to both purchase and renovation mortgage loans. The percentage is applied to the principal amount the client chooses to prepay, whether partial or total. In the case of partial prepayments, it is only applied if the number of days between prepayment and settlement is less than 180 days or within the first quarter of the loan term. For example, in a 10-year loan, the rate is only charged if the total prepayment is made within the first two and a half years. The partial rate is charged over the entire life of the loan .
Macro : Total or partial pre-cancellation has a cost of 2% plus VAT of the pre-cancelled amount .
Mortgage : Partial cancellations require a minimum advance payment equivalent to three installments plus the term's installment, and a 3% plus VAT fee is charged . In the case of full cancellation, if the customer cancels before having repaid 25% of the original loan term, they must pay a 3% + VAT fee on the principal balance . After this period, no prepayment fee is charged.
Bancor : You can prepay without a fee after a quarter of the loan term has elapsed. For example, a 20-year loan can be prepaid without a fee starting in the fifth year. Before that date, there is a 3% fee on the principal owed in UVAs. There is no penalty for paying early.
Santander : charges a 3% fee plus VAT on the prepaid amount . The full early repayment fee will only apply when at the time of cancellation at least a quarter of the original loan term or 180 days have elapsed since the loan was granted, whichever is greater.
Del Sol : Partial prepayment costs 4% plus VAT on the outstanding balance. If the entire principal is not paid, the installments will be recalculated based on the remaining balance. You can also pay off the entire loan balance early . This operation, called full prepayment, will cost 4% plus VAT, calculated on the outstanding amount at the time of payment if it is still within 25% of the original term or the first 180 days (whichever is greater). After this period, there is no fee.
Brubank : Prepays a loan with the payment of the interest accrued up to that date and a fee, which will be communicated before payment confirmation. If the loan is repaid early 180 days after the loan application or 25% of the original term has elapsed (whichever is greater), no fee will be charged.
So, is it worth paying off a mortgage early or not? While the idea of paying off a mortgage early may seem attractive to avoid future interest payments, it's important to consider the penalties and additional costs that banks may apply. Before making a decision, it's recommended to evaluate your personal financial situation and consult with your bank to learn about the specific terms of each loan.
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