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Mortgage loans: the data that could leave more than 4 million workers out of pocket - La Nacion Propiedades
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www.lanacion.com.ar
March 10, 2025
The specific conditions that banks impose on self-employed workers reflect the difficulties they have in accessing a mortgage loan.
By Candela Contreras
Mortgage loans: the difficulties faced by self-employed workers when applying for a loan to buy a home. Shutterstock
In Argentina, 4.5 million people are registered as monotributistas (data analyzed through December 2024), according to official data. This simplified system, designed for small taxpayers, encompasses a large portion of the country's self-employed workers . However, when it comes to accessing a mortgage loan , this segment faces specific conditions that can complicate their dream of owning a home .
The return of mortgage loans has sparked interest among those dreaming of owning their own home . After a hiatus of nearly five years, various public and private banks began offering UVA (Purchasing Value Unit) loans starting at the end of April 2024. Currently, 24 banks offer this option .
Most loans can be used for the purchase of a first or second home , renovations , improvements , or expansions of the property , and are intended for employees , the self-employed , and micro-entrepreneurs . The latter face specific requirements that can become an obstacle to accessing financing .
In most cases, the first installment on a mortgage loan should not exceed 25% of the applicant's or their household's monthly income . However, some banks allow a down payment-to-income ratio of up to 30%.
This point is one of the most resonant among taxpayers in the tax system, that is, since one of the key factors when evaluating credit is determining what amount of the monotributo category is considered valid income to determine the amount to lend, but this factor can also be its "Achilles heel . "
The "Achilles heel" of the self-employed. Shutterstock
For example, if a self-employed person is registered in category D, with a maximum turnover of $19,926,340.10, dividing that amount by 12 results in an estimated monthly income of $1,660,528. This figure is the basis the bank will use to determine whether the individual qualifies for the loan.
However, this point, which could be considered advantageous because the bank would grant a higher amount than what the person earns monthly - taking the maximum of the category -, the reality is completely different, since in an inflationary context this becomes a problem .
“ The reclassification is based on income from the previous year, which creates a gap . In addition, many were downgraded due to inflation, which affects their creditworthiness,” says Federico González Rouco, an economist specializing in housing. “ The income is out of date because the reclassification takes the previous year's income , so it's influenced by what happened 12 months ago.”
The outdated categorization of the monotributo means that even those who are earning more don't see that growth reflected until a year later . This delay complicates matters for applicants, as banks assess their ability to pay with data that doesn't represent their current financial situation. "The problem for monotributistas is that they will have to wait until we are a country without inflation," explains the economist.
A clear example of these difficulties could be seen during the mortgage loan process during Mauricio Macri's administration . "At that time, almost 80% of the loans granted were to employed workers, in a country heavily populated by self-employed individuals," says González Rouco.
Furthermore, a key question many self-employed individuals ask when applying for a mortgage is: Do banks offer the same conditions as employees?
The rates offered by the 24 banking institutions range from 3% to 14%—with benefits for those with payroll accounts at the banks.
According to official sources consulted by LA NACION , for those who are self-employed but also employed, banks typically consider both incomes. However, there is a key difference: if the applicant is solely self-employed, they do not have a payroll account with the bank , so the highest rate applies , i.e., the one without a payroll account . This represents an additional cost that could limit the number of approved loans .
A clear example is that of Banco Nación , which, according to the data shared on the loans granted so far, of the 3,000 loans agreed upon , 22% correspond to self-employed workers/monotributistas .
The Monotributo (Single Tax) limits, which determine the categories of this regime, are updated based on changes in the Consumer Price Index . ARCA (formerly AFIP) has already officially published the new tables and corresponding quotas. Thus, it is estimated that the maximum annual income to qualify for this simplified tax system has increased from $68,000,000 to $82,375,200 . This limit applies to both those engaged in commerce and those providing services.
Thus, the annual maximum turnover per category is currently as follows :
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Source:
Créditos hipotecarios: el dato que puede dejar a más de 4 millones de trabajadores afuera
Las condiciones específicas que los bancos imponen a los monotributistas reflejan las dificultades que tienen para acceder a un préstamo hipotecario
www.lanacion.com.ar
March 10, 2025
The specific conditions that banks impose on self-employed workers reflect the difficulties they have in accessing a mortgage loan.
By Candela Contreras
Mortgage loans: the difficulties faced by self-employed workers when applying for a loan to buy a home. Shutterstock
In Argentina, 4.5 million people are registered as monotributistas (data analyzed through December 2024), according to official data. This simplified system, designed for small taxpayers, encompasses a large portion of the country's self-employed workers . However, when it comes to accessing a mortgage loan , this segment faces specific conditions that can complicate their dream of owning a home .
The return of mortgage loans has sparked interest among those dreaming of owning their own home . After a hiatus of nearly five years, various public and private banks began offering UVA (Purchasing Value Unit) loans starting at the end of April 2024. Currently, 24 banks offer this option .
Most loans can be used for the purchase of a first or second home , renovations , improvements , or expansions of the property , and are intended for employees , the self-employed , and micro-entrepreneurs . The latter face specific requirements that can become an obstacle to accessing financing .
In most cases, the first installment on a mortgage loan should not exceed 25% of the applicant's or their household's monthly income . However, some banks allow a down payment-to-income ratio of up to 30%.
This point is one of the most resonant among taxpayers in the tax system, that is, since one of the key factors when evaluating credit is determining what amount of the monotributo category is considered valid income to determine the amount to lend, but this factor can also be its "Achilles heel . "
The "Achilles heel" of the self-employed. Shutterstock
What do banks look at?
When applying for a UVA mortgage loan, banks evaluate the applicant's declared income . In the case of self-employed individuals , whose income can fluctuate from month to month, they fall into a category ranging from "A" to "K," defined, among other parameters, by their annual gross income. Therefore, the income considered , in this case, is the maximum allowed in the category in which they are registered , and not necessarily their monthly billing. This amount is used as a reference to calculate payment capacity .For example, if a self-employed person is registered in category D, with a maximum turnover of $19,926,340.10, dividing that amount by 12 results in an estimated monthly income of $1,660,528. This figure is the basis the bank will use to determine whether the individual qualifies for the loan.
However, this point, which could be considered advantageous because the bank would grant a higher amount than what the person earns monthly - taking the maximum of the category -, the reality is completely different, since in an inflationary context this becomes a problem .
“ The reclassification is based on income from the previous year, which creates a gap . In addition, many were downgraded due to inflation, which affects their creditworthiness,” says Federico González Rouco, an economist specializing in housing. “ The income is out of date because the reclassification takes the previous year's income , so it's influenced by what happened 12 months ago.”
The outdated categorization of the monotributo means that even those who are earning more don't see that growth reflected until a year later . This delay complicates matters for applicants, as banks assess their ability to pay with data that doesn't represent their current financial situation. "The problem for monotributistas is that they will have to wait until we are a country without inflation," explains the economist.
A clear example of these difficulties could be seen during the mortgage loan process during Mauricio Macri's administration . "At that time, almost 80% of the loans granted were to employed workers, in a country heavily populated by self-employed individuals," says González Rouco.
Furthermore, a key question many self-employed individuals ask when applying for a mortgage is: Do banks offer the same conditions as employees?
The rates offered by the 24 banking institutions range from 3% to 14%—with benefits for those with payroll accounts at the banks.
According to official sources consulted by LA NACION , for those who are self-employed but also employed, banks typically consider both incomes. However, there is a key difference: if the applicant is solely self-employed, they do not have a payroll account with the bank , so the highest rate applies , i.e., the one without a payroll account . This represents an additional cost that could limit the number of approved loans .
A clear example is that of Banco Nación , which, according to the data shared on the loans granted so far, of the 3,000 loans agreed upon , 22% correspond to self-employed workers/monotributistas .
Other requirements to consider
In addition to the maximum amount for the category , financial institutions usually analyze:- Monotributo (monotributo) seniority : Most banks require at least one year of seniority. In the case of recategorization and not having been in the current category for a year, they tend to consider the shorter term.
- Actual Billing : While the category amount is the primary parameter, some banks may request billing receipts to verify the stability of current income.
The Monotributo (Single Tax) limits, which determine the categories of this regime, are updated based on changes in the Consumer Price Index . ARCA (formerly AFIP) has already officially published the new tables and corresponding quotas. Thus, it is estimated that the maximum annual income to qualify for this simplified tax system has increased from $68,000,000 to $82,375,200 . This limit applies to both those engaged in commerce and those providing services.
Thus, the annual maximum turnover per category is currently as follows :
- Category A: $7,813,530
- Category B: $11,447,730
- Category C: $16,050,091.57
- Category D: $19,926,340.10
- Category E: $23,439,190.34
- Category F: $29,374,695.90
- Category G: $35,128,502.31
- Category H: $53,298,417.30
- Category I: $59,657,887.55
- Category J: $68,318,880.36
- Category K: $82,370,281.28
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