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Mortgage loans: how much money do you need to buy a 50,000, 80,000 and 100,000 dollar apartment? - La Nacion Propiedades
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www.lanacion.com.ar
November 29, 2024
The initial loan installment cannot exceed 25% of the applicant's income
Mortgage loan: the initial fee cannot exceed 25% of the applicant's monthly income FreePik
UVA mortgage loans have once again become an option for those who dream of accessing their own home in Argentina . Since April of this year, 23 banks , both public and private, have launched their lines of mortgage loans that adjust their installments based on inflation .
However, there are certain requirements that, in many cases, can leave several potential applicants out of reach, such as: the amount of income they can demonstrate .
The inclusion of private banks means that financial institutions began to compete to offer the best rates , which translates into more affordable installments to pay . In this way, competition between banks means not only lower rates, but also a greater variety of options and flexibility for potential borrowers.
“Since the first mortgage loan announcement was made, there was a huge expectation within the market and among those interested in being able to access a home,” said José Rozados, director of Reporte Inmobiliario, hopefully, within the framework of the seminar held by the College of Notaries of the city of Buenos Aires . Such was the response of consumers that, in the deeds of sale revealed in the month of September , the operations with loans represented 14% of the total : 705 with mortgages out of 5,157 operations.
In this context, the rates of mortgage loans issued range between 3% and 9.5%. The amounts to be lent reach up to $250 million , although in some cases there is no limit .
In general, these loans finance between 75% and 80% of the value of the property , with a single entity, and the Bank of Córdoba (Bancor), which lends 100%. The financing terms vary between 5 and 30 years , and the installments, being UVA loans, are adjusted for inflation . In addition, the installment committed by the borrower must represent between 20% and 30% of monthly income.
There are already 22 banks that launched their mortgage credit lines
Below are some concrete examples with approximate figures on how much you have to earn to qualify , taking an average rate of 5.5% to be paid in 20 years and with 80% of the value of the property, with a quote of US$ = $1100 .
While the return of UVA loans and competition between banks facilitate access to home ownership, current economic conditions remain a significant barrier .
For an average family, meeting the minimum income needed to cover the down payment on a loan remains a challenge. In addition, inflation adjustment poses a risk that applicants should carefully consider before embarking on such a loan .
The return of UVA mortgage loans and competition between banks facilitate access to home ownershipMaxie Amena - Archive
In all cases, you must not have any unfavorable records in reporting agencies or with the Central Bank of the Argentine Republic during the last 12 months.
In the case of a loan for building improvements on a property, the following must be attached: the deed of the property and the plans of the works to be carried out certified by an engineer or architect with their respective certifications before the professional associations that govern the registration.
www.buysellba.com
Source:
Créditos hipotecarios: cuánta plata necesitas para comprar un departamento de 50.000, 80.000 y 100.000 dólares
La cuota inicial del préstamo no puede superar el 25% de los ingresos del solicitante
www.lanacion.com.ar
November 29, 2024
The initial loan installment cannot exceed 25% of the applicant's income
Mortgage loan: the initial fee cannot exceed 25% of the applicant's monthly income FreePik
UVA mortgage loans have once again become an option for those who dream of accessing their own home in Argentina . Since April of this year, 23 banks , both public and private, have launched their lines of mortgage loans that adjust their installments based on inflation .
However, there are certain requirements that, in many cases, can leave several potential applicants out of reach, such as: the amount of income they can demonstrate .
The inclusion of private banks means that financial institutions began to compete to offer the best rates , which translates into more affordable installments to pay . In this way, competition between banks means not only lower rates, but also a greater variety of options and flexibility for potential borrowers.
“Since the first mortgage loan announcement was made, there was a huge expectation within the market and among those interested in being able to access a home,” said José Rozados, director of Reporte Inmobiliario, hopefully, within the framework of the seminar held by the College of Notaries of the city of Buenos Aires . Such was the response of consumers that, in the deeds of sale revealed in the month of September , the operations with loans represented 14% of the total : 705 with mortgages out of 5,157 operations.
In this context, the rates of mortgage loans issued range between 3% and 9.5%. The amounts to be lent reach up to $250 million , although in some cases there is no limit .
In general, these loans finance between 75% and 80% of the value of the property , with a single entity, and the Bank of Córdoba (Bancor), which lends 100%. The financing terms vary between 5 and 30 years , and the installments, being UVA loans, are adjusted for inflation . In addition, the installment committed by the borrower must represent between 20% and 30% of monthly income.
There are already 22 banks that launched their mortgage credit lines
How much do you have to earn per month to qualify?
To access a UVA loan , in most cases, the initial fee to be paid for the loan cannot exceed 25% of the monthly income of the applicant or the family group, with the exception of some banks in which the income-to-fee ratio is 30% .Below are some concrete examples with approximate figures on how much you have to earn to qualify , taking an average rate of 5.5% to be paid in 20 years and with 80% of the value of the property, with a quote of US$ = $1100 .
For a property that costs US$100,000
- Loan amount : $88 million (equivalent to 80% of the property)
- Initial savings : US$20,000
- Value of the first installment : $605,340
- Minimum income required : $2,421,360
A property worth US$80,000
- Loan amount : $70.4 million (equivalent to 80% of the property)
- Initial savings : US$16,000
- Value of the first installment : $484,272
- Minimum income required : $1,937,088
A US$50,000 property
- Loan amount : $44 million (equivalent to 80% of the property)
- Initial savings : US$10,000
- Value of the first installment : $302,670
- Minimum income required : $1,210,680
While the return of UVA loans and competition between banks facilitate access to home ownership, current economic conditions remain a significant barrier .
For an average family, meeting the minimum income needed to cover the down payment on a loan remains a challenge. In addition, inflation adjustment poses a risk that applicants should carefully consider before embarking on such a loan .
The return of UVA mortgage loans and competition between banks facilitate access to home ownershipMaxie Amena - Archive
The documentation required to obtain a mortgage loan
On the buyer's side
The essential documents to be presented by the buyer, who must be solvent, that is, he/she can prove his/her income and has a credit history, are:- The National Identity Document (DNI)
- A utility or tax bill in your name to verify your address
- Dependency and Retirement Relationship: the last salary/asset receipt (in case of not crediting salary/assets to the Bank)
- Self-employed: certification of net income (net profit) issued by a public accountant with a signature certified by the Professional Council of Economic Sciences for the last 12 months.
- Monotributista: last three or six (depending on the bank) proof of payment of the monotributo.
In all cases, you must not have any unfavorable records in reporting agencies or with the Central Bank of the Argentine Republic during the last 12 months.
On the seller's side
For his part, according to what was provided by notaries, the owner must present the following instruments to the bank , so that the buyer can manage the credit:- Photocopy of deed of ownership (title of ownership)
- A municipal plan in the case of the province of Buenos Aires and, for properties in CABA, the horizontal property plan and the property and administration regulations. In addition, if it exists, the internal plan and the approved subdivision plan of the property (technical document that shows how a real estate property is divided into different parcels or lots).
- Reservation instrument ad referendum (subject to approval) of the granting of credit, with the following data : name, surname, ID, address, telephone number and e-mail of the buyer; name, surname, ID, telephone number and e-mail of the seller.
- Property information : street, number, floor, apartment, functional unit number (according to the subdivision plan and horizontal property regulations), complementary unit number (such as, for example, the garage or storage room), location.
- Value of the property , which will then be appraised by the bank.
In the case of a loan for building improvements on a property, the following must be attached: the deed of the property and the plans of the works to be carried out certified by an engineer or architect with their respective certifications before the professional associations that govern the registration.
www.buysellba.com
