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Mortgage loans: what are the options for building and refurbishing homes offered by banks? - Infobae
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www.infobae.com
August 27, 2024
Tips for optimal use of credit money and key recommendations for improving and increasing comfort at home
By Jose Luis Cieri
The new loans allow the option of building, refurbishing or expanding the home (Source: Getty)
The boom in new UVA mortgage loans has boosted the real estate market and the sector of those seeking to expand, build or renovate their homes. Little by little, as Infobae reported , the engine is starting to get going . It is estimated that in a few weeks more than 2,000 plans will be disbursed throughout the country, boosting activity and offering multiple options to homeowners to improve their quality of life.
Banco Hipotecario was the first to launch loans, followed by other entities: Ciudad, Supervielle, Nación, Galicia, Santander, BBVA, Patagonia, Del Sol, ICBC, Credicoop, among others. All of them offer loans for the purchase of homes, although not for construction, renovation or expansion.
El Hipotecario stands out with proposals for construction and renovation. Javier Varani , manager of the Institutional Relations Area of Banco Hipotecario, explained that employees in a dependent relationship, self-employed and freelancers with one year of seniority can access these loans. It is essential to have a construction budget for the project.
The bank finances up to 80% of the value of the home for purchase, 80% of the budget for construction, 50% for completion and 100% for expansion, without exceeding 35% of the value of the current guarantee. Clients who prove their salary in the bank will have access to competitive rates: UVA + 4.25% the first year and then 6.9%.
Varani added: “Personal loans can reach up to $5,000,000 for construction and $2,500,000 for expansions.”
This credit is available to self-employed persons, registered managers, micro-entrepreneurs and employees who prove their income in the bank or migrate their salary plan to Banco Ciudad. The required documentation includes the property title, co-ownership regulations (if applicable), approved municipal plans, deed of transfer of ownership and construction plans (in the case of improvements).
Banco Nación offers the line called “+Hogares”, which has a novelty in an anti-inflation clause . The entity, headed by Daniel Tildar, implemented a system for its clients that works as a “cap” on monthly payments, in order to prevent abrupt jumps in inflation.
“The cap will be applied if the adjustment for the coefficient of variation in wages is less than the UVA-adjusted fee,” explained Daniel Tillard , the president of this entity. The difference in the amounts will be transferred to the end of the loan, updated by UVA. Once the payment schedule is finalized, the remaining balance will be rescheduled, which can be paid with a personal loan or through an extension of the mortgage.
Renovating the kitchen always adds value to the home (Getty Images)
For single-family homes with permanent occupancy, the loan is up to 140,000 UVAs: 4.50% fixed APR. Maximum loanable value: The equivalent in pesos of 105,000 UVAs, which represents USD 89,000 or 93,828,000 pesos. With payment terms of up to 30 years.
As for financing, it offers up to $250,000,000 in terms of up to 20 years. It covers up to 75% of the sale value of the unit and, for renovation, improvement and expansion, up to 100% of the construction budget, without exceeding 50% of the appraisal value of the property. For every $10 million requested for 20 years in CABA, the initial installment is $58,149. If the income totals $1,200,000, they can access a loan of $50 million with an initial installment of 344,000 pesos.
If the property is located in the central area of Buenos Aires, between San Juan, Entre Ríos, Santa Fe, Leandro N. Alem and Paseo Colón avenues, a preferential rate of 3.5% + UVA is available. In other cases, the rate is 5.5% + UVA.
Financing varies: up to 80% of the appraisal for acquisition (maximum term of 360 months), up to 60% for expansion (240 months) and up to 50% for renovation (120 months).
“A differential benefit of Supervielle is the lowest rate on the market with UVA + 4% the first year and then 5% for those who deposit their salary in the bank, with no limit on the amount,” Villegas added.
At Banco Galicia, the loan installment cannot exceed 25% of the income of those applying. And the person or family that obtains it has up to 10 years to return the amount for expansion or renovation. They have a fixed annual rate of 5.5% + UVA if the user receives his salary at Galicia; otherwise, it is 7.5% + UVA.
They will be able to access 80% of the value of the property if it is for housing, and 50% if it is for expansion or renovation. In addition, they can cancel in advance in full or in part at no cost. As an example, if up to $80 million were granted. With a rate of 5.5% for proving their salary in Galicia and with a term of 30 years, the first installment would be $454,231; and the sum of income of whoever requests the loan should be at least $1,816,925 net.
“We offer flexible options and exclusive benefits for renovations or expansions, such as the possibility of adding up to four incomes to access the loan,” said Fabián Kon , general manager of this entity.
Renovating the bathroom is among the most popular renovations
ICBC offers up to $125,000,000 for the repair or expansion of a primary residence for permanent use or the purchase of a second residence. The minimum amount to apply for is $10,000,000, and it can be requested by people between 18 and 69 years old, ICBC clients or new clients.
With a fixed rate of 7.5% and a French amortization system, if the person deposits their salary in the ICBC, they can access even more benefits to equip and furnish their home.
Anabela Santos , a businesswoman and partner at InArch, explained that some banks are studying alternatives to extend credit lines to construction projects, which would be a huge boost for the sector and society, since construction is a major driver of the labor market.
Detailed planning is crucial to using credit money efficiently.
“Preparing a budget that takes into account all aspects of the project, involving qualified professionals and maintaining a rigorous monitoring of costs are fundamental steps,” Santos added.
He recommends stocking higher-value inputs at the beginning to avoid price fluctuations and keeping a reserve for unforeseen costs.
It is key to position yourself in improvements that increase the value of the home and the quality of life, such as refurbishing bathrooms or kitchens (current value starts at $6,000,000, depending on the materials).
The total renovation of a bathroom can take up to 45 days maximum.
Myriam Heredia , an architect, stressed the importance of design and functionality, ensuring that the new space is consistent with the existing architectural style and meets the needs of the user. She also advised to inform oneself about local regulations, select high-quality materials and hire qualified professionals to avoid future problems.
It is vital to consider the user's needs when deciding whether to expand or retrofit. An extension is better if more space is needed, while a retrofit is suitable for upgrades.
Currently, the construction cost exceeds USD 600 per m2 to renovate a living room or install PVC slats due to humidity. Painting the entire home with three bedrooms, including materials and labor, will require around 1,000,000 pesos.
“Assessing the need properly is key to properly allocating mortgage loan funds, and an architect optimizes their use for sustainable improvements, guiding from the design to the selection of materials,” Heredia concluded.
www.buysellba.com
Source:
Créditos hipotecarios: cuáles son las opciones para construcción y refacción de viviendas que ofrecen los bancos
Consejos para utilizar de manera óptima el dinero del crédito y las recomendaciones clave para mejorar y aumentar el confort en el hogar
www.infobae.com
August 27, 2024
Tips for optimal use of credit money and key recommendations for improving and increasing comfort at home
By Jose Luis Cieri
The new loans allow the option of building, refurbishing or expanding the home (Source: Getty)
The boom in new UVA mortgage loans has boosted the real estate market and the sector of those seeking to expand, build or renovate their homes. Little by little, as Infobae reported , the engine is starting to get going . It is estimated that in a few weeks more than 2,000 plans will be disbursed throughout the country, boosting activity and offering multiple options to homeowners to improve their quality of life.
Banco Hipotecario was the first to launch loans, followed by other entities: Ciudad, Supervielle, Nación, Galicia, Santander, BBVA, Patagonia, Del Sol, ICBC, Credicoop, among others. All of them offer loans for the purchase of homes, although not for construction, renovation or expansion.
El Hipotecario stands out with proposals for construction and renovation. Javier Varani , manager of the Institutional Relations Area of Banco Hipotecario, explained that employees in a dependent relationship, self-employed and freelancers with one year of seniority can access these loans. It is essential to have a construction budget for the project.
The bank finances up to 80% of the value of the home for purchase, 80% of the budget for construction, 50% for completion and 100% for expansion, without exceeding 35% of the value of the current guarantee. Clients who prove their salary in the bank will have access to competitive rates: UVA + 4.25% the first year and then 6.9%.
Varani added: “Personal loans can reach up to $5,000,000 for construction and $2,500,000 for expansions.”
Public banks
Banco Ciudad offers comprehensive solutions for different housing needs. Its UVA mortgage loan is intended for the acquisition, renovation, improvement and expansion of housing, both permanent and non-permanent, located in any city, district or town where the bank has a presence.This credit is available to self-employed persons, registered managers, micro-entrepreneurs and employees who prove their income in the bank or migrate their salary plan to Banco Ciudad. The required documentation includes the property title, co-ownership regulations (if applicable), approved municipal plans, deed of transfer of ownership and construction plans (in the case of improvements).
Banco Nación offers the line called “+Hogares”, which has a novelty in an anti-inflation clause . The entity, headed by Daniel Tildar, implemented a system for its clients that works as a “cap” on monthly payments, in order to prevent abrupt jumps in inflation.
“The cap will be applied if the adjustment for the coefficient of variation in wages is less than the UVA-adjusted fee,” explained Daniel Tillard , the president of this entity. The difference in the amounts will be transferred to the end of the loan, updated by UVA. Once the payment schedule is finalized, the remaining balance will be rescheduled, which can be paid with a personal loan or through an extension of the mortgage.
Renovating the kitchen always adds value to the home (Getty Images)
For single-family homes with permanent occupancy, the loan is up to 140,000 UVAs: 4.50% fixed APR. Maximum loanable value: The equivalent in pesos of 105,000 UVAs, which represents USD 89,000 or 93,828,000 pesos. With payment terms of up to 30 years.
As for financing, it offers up to $250,000,000 in terms of up to 20 years. It covers up to 75% of the sale value of the unit and, for renovation, improvement and expansion, up to 100% of the construction budget, without exceeding 50% of the appraisal value of the property. For every $10 million requested for 20 years in CABA, the initial installment is $58,149. If the income totals $1,200,000, they can access a loan of $50 million with an initial installment of 344,000 pesos.
If the property is located in the central area of Buenos Aires, between San Juan, Entre Ríos, Santa Fe, Leandro N. Alem and Paseo Colón avenues, a preferential rate of 3.5% + UVA is available. In other cases, the rate is 5.5% + UVA.
Private banks
Among the private ones, Supervielle also grants plans to improve or expand. Hernán Villegas , product director at Supervielle, said that the bank's mortgage loans are intended for the acquisition, expansion or renovation of homes. It is required to demonstrate employment relationship, being a self-employed person or autonomous. The age to apply is from 18 to 65 years (cancellation up to 75 years), with a minimum income of $450,000.Financing varies: up to 80% of the appraisal for acquisition (maximum term of 360 months), up to 60% for expansion (240 months) and up to 50% for renovation (120 months).
“A differential benefit of Supervielle is the lowest rate on the market with UVA + 4% the first year and then 5% for those who deposit their salary in the bank, with no limit on the amount,” Villegas added.
At Banco Galicia, the loan installment cannot exceed 25% of the income of those applying. And the person or family that obtains it has up to 10 years to return the amount for expansion or renovation. They have a fixed annual rate of 5.5% + UVA if the user receives his salary at Galicia; otherwise, it is 7.5% + UVA.
They will be able to access 80% of the value of the property if it is for housing, and 50% if it is for expansion or renovation. In addition, they can cancel in advance in full or in part at no cost. As an example, if up to $80 million were granted. With a rate of 5.5% for proving their salary in Galicia and with a term of 30 years, the first installment would be $454,231; and the sum of income of whoever requests the loan should be at least $1,816,925 net.
“We offer flexible options and exclusive benefits for renovations or expansions, such as the possibility of adding up to four incomes to access the loan,” said Fabián Kon , general manager of this entity.
Renovating the bathroom is among the most popular renovations
ICBC offers up to $125,000,000 for the repair or expansion of a primary residence for permanent use or the purchase of a second residence. The minimum amount to apply for is $10,000,000, and it can be requested by people between 18 and 69 years old, ICBC clients or new clients.
With a fixed rate of 7.5% and a French amortization system, if the person deposits their salary in the ICBC, they can access even more benefits to equip and furnish their home.
Be efficient
These credits only apply to properties with deeds, excluding projects in the works or under construction.Anabela Santos , a businesswoman and partner at InArch, explained that some banks are studying alternatives to extend credit lines to construction projects, which would be a huge boost for the sector and society, since construction is a major driver of the labor market.
Detailed planning is crucial to using credit money efficiently.
“Preparing a budget that takes into account all aspects of the project, involving qualified professionals and maintaining a rigorous monitoring of costs are fundamental steps,” Santos added.
He recommends stocking higher-value inputs at the beginning to avoid price fluctuations and keeping a reserve for unforeseen costs.
It is key to position yourself in improvements that increase the value of the home and the quality of life, such as refurbishing bathrooms or kitchens (current value starts at $6,000,000, depending on the materials).
Plan well
When planning a home extension or renovation using a loan, it is essential to consider several important architectural aspects.
The total renovation of a bathroom can take up to 45 days maximum.
Myriam Heredia , an architect, stressed the importance of design and functionality, ensuring that the new space is consistent with the existing architectural style and meets the needs of the user. She also advised to inform oneself about local regulations, select high-quality materials and hire qualified professionals to avoid future problems.
It is vital to consider the user's needs when deciding whether to expand or retrofit. An extension is better if more space is needed, while a retrofit is suitable for upgrades.
Currently, the construction cost exceeds USD 600 per m2 to renovate a living room or install PVC slats due to humidity. Painting the entire home with three bedrooms, including materials and labor, will require around 1,000,000 pesos.
“Assessing the need properly is key to properly allocating mortgage loan funds, and an architect optimizes their use for sustainable improvements, guiding from the design to the selection of materials,” Heredia concluded.
www.buysellba.com
