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Mortgage loans: the data that could leave more than 4 million workers out of work - La Nacion Propiedades
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www.lanacion.com.ar
February 10, 2025
The specific conditions that banks impose on self-employed workers reflect the difficulties they have in accessing a mortgage loan
Mortgage loans: the difficulties faced by self-employed workers when requesting a loan to buy a house Shutterstock
In Argentina, 4.5 million people are registered as self-employed (data analyzed until December 2024), according to official information. This simplified regime, designed for small taxpayers, groups together a large part of the country's independent workers . However, when it comes to accessing a mortgage loan , this segment faces specific conditions that can complicate their dream of accessing their own home .
The return of mortgage loans sparked the interest of all those who dream of being able to access their own home . After a break of almost five years, from the end of April 2024, various banking entities, both public and private, began to offer loans in UVA (Unidad de Valor Adquisitivo). Currently, there are already 24 banks that offer this option .
Loans can mostly be used for the purchase of a first or second home , for refurbishing , improving or expanding the property , and are intended for employees, self -employed workers , and micro-entrepreneurs . The latter face specific requirements that can become an obstacle to accessing financing .
In most cases, the first installment of a mortgage loan should not exceed 25% of the applicant's or his or her household's monthly income . However, some banks allow an installment-to-income ratio of up to 30%.
This point is one of the most resonant among taxpayers of the tax regime, that is, since one of the key factors when it comes to credit assessment is determining what amount of the single tax category is considered valid income to know the amount to be lent, 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, whose maximum turnover is $19,926,340.10, dividing that amount by 12, the estimated monthly income will be $1,660,528. The latter is the value that the bank will use as a basis to determine whether the person meets the requirements to obtain the loan.
However, this point that could be considered advantageous because the bank would grant an amount greater than what the person earns monthly - by taking the maximum of the category - the reality is completely different, since in an inflationary context this becomes a problem .
“ The recategorization is based on income from the previous year, which creates a gap . In addition, many people have been downgraded due to inflation, which affects their creditworthiness,” says Federico González Rouco, an economist specializing in housing, and explains: “ The income is out of date , because the recategorization takes it from the previous year , so it is influenced by what happened 12 months ago.”
The outdated categorization of the single tax means that even those who are earning more do not see this growth reflected until a year later . This delay complicates things for applicants, since banks evaluate their payment capacity with data that do not represent their current economic reality. “The problem for the single tax payers is that until we are a country without inflation,” explains the economist.
A clear example of these difficulties could be seen during the granting of mortgage loans during the era of Mauricio Macri . “At that time, almost 80% of the loans granted were for workers in an employment relationship, in a country where there is a large representation of self-employed workers,” says González Rouco.
Furthermore, a key question that many self-employed workers ask themselves when taking out a mortgage loan is: Do banks grant the same conditions as those granted to employees?
The rates offered by the 24 banking entities range from 3% to 14% - with benefits for those who have salary accounts in the banks.
According to official sources consulted by LA NACION , for those who are self-employed but also work in an employment relationship, banks usually take into account both incomes. However, there is a key difference: if the applicant is only self-employed, he or she does not have a salary account in the entity , so the highest rate is applied , that is, the one without a salary account . This implies an additional cost that could limit the number of approved credits .
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 , 22% correspond to self-employed/monotributistas .
The limits of the single tax according to which the categories of this regime are established are updated based on the variation of the Consumer Price Index . ARCA (formerly AFIP) has already officially published the new tables and corresponding quotas. In this way, it is possible to estimate that the maximum annual income to be in this simplified tax system went from $68,000,000 to $82,375,200 . This limit is valid both for those who are dedicated to commerce and for those who provide services.
In this way, the maximum annual billing 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
February 10, 2025
The specific conditions that banks impose on self-employed workers reflect the difficulties they have in accessing a mortgage loan
Mortgage loans: the difficulties faced by self-employed workers when requesting a loan to buy a house Shutterstock
In Argentina, 4.5 million people are registered as self-employed (data analyzed until December 2024), according to official information. This simplified regime, designed for small taxpayers, groups together a large part of the country's independent workers . However, when it comes to accessing a mortgage loan , this segment faces specific conditions that can complicate their dream of accessing their own home .
The return of mortgage loans sparked the interest of all those who dream of being able to access their own home . After a break of almost five years, from the end of April 2024, various banking entities, both public and private, began to offer loans in UVA (Unidad de Valor Adquisitivo). Currently, there are already 24 banks that offer this option .
Loans can mostly be used for the purchase of a first or second home , for refurbishing , improving or expanding the property , and are intended for employees, self -employed workers , and micro-entrepreneurs . The latter face specific requirements that can become an obstacle to accessing financing .
In most cases, the first installment of a mortgage loan should not exceed 25% of the applicant's or his or her household's monthly income . However, some banks allow an installment-to-income ratio of up to 30%.
This point is one of the most resonant among taxpayers of the tax regime, that is, since one of the key factors when it comes to credit assessment is determining what amount of the single tax category is considered valid income to know the amount to be lent, but this factor can also be its "Achilles heel" .
The "Achilles heel" of the self-employed Shutterstock
What are banks looking at?
When applying for a UVA mortgage loan, banks evaluate the income declared by the applicant . In the case of self-employed workers , since their income can vary from month to month, they belong to a category that goes from “A” to “K” and that is defined, among other parameters, by the amount of 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 what they bill monthly. This amount is used as a reference to calculate the payment capacity .For example, if a self-employed person is registered in category D, whose maximum turnover is $19,926,340.10, dividing that amount by 12, the estimated monthly income will be $1,660,528. The latter is the value that the bank will use as a basis to determine whether the person meets the requirements to obtain the loan.
However, this point that could be considered advantageous because the bank would grant an amount greater than what the person earns monthly - by taking the maximum of the category - the reality is completely different, since in an inflationary context this becomes a problem .
“ The recategorization is based on income from the previous year, which creates a gap . In addition, many people have been downgraded due to inflation, which affects their creditworthiness,” says Federico González Rouco, an economist specializing in housing, and explains: “ The income is out of date , because the recategorization takes it from the previous year , so it is influenced by what happened 12 months ago.”
The outdated categorization of the single tax means that even those who are earning more do not see this growth reflected until a year later . This delay complicates things for applicants, since banks evaluate their payment capacity with data that do not represent their current economic reality. “The problem for the single tax payers is that until we are a country without inflation,” explains the economist.
A clear example of these difficulties could be seen during the granting of mortgage loans during the era of Mauricio Macri . “At that time, almost 80% of the loans granted were for workers in an employment relationship, in a country where there is a large representation of self-employed workers,” says González Rouco.
Furthermore, a key question that many self-employed workers ask themselves when taking out a mortgage loan is: Do banks grant the same conditions as those granted to employees?
The rates offered by the 24 banking entities range from 3% to 14% - with benefits for those who have salary accounts in the banks.
According to official sources consulted by LA NACION , for those who are self-employed but also work in an employment relationship, banks usually take into account both incomes. However, there is a key difference: if the applicant is only self-employed, he or she does not have a salary account in the entity , so the highest rate is applied , that is, the one without a salary account . This implies an additional cost that could limit the number of approved credits .
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 , 22% correspond to self-employed/monotributistas .
Other requirements to consider
In addition to the maximum amount of the category , financial institutions usually analyze:- Antiquity of the single tax : most banks require at least one year of antiquity. While in the case of recategorization and not having a year in the current category, they tend to consider the lower one.
- Actual billing : Although the category amount is the main parameter, some banks may request billing vouchers to corroborate the stability of current income.
The limits of the single tax according to which the categories of this regime are established are updated based on the variation of the Consumer Price Index . ARCA (formerly AFIP) has already officially published the new tables and corresponding quotas. In this way, it is possible to estimate that the maximum annual income to be in this simplified tax system went from $68,000,000 to $82,375,200 . This limit is valid both for those who are dedicated to commerce and for those who provide services.
In this way, the maximum annual billing 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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