Real Estate Sales Mortgage loans: which banks have increased the amount of money to lend and improved their conditions? - La Nacion Propiedades

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Mortgage loans: which banks have increased the amount of money to lend and improved their conditions? - La Nacion Propiedades


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Créditos hipotecarios: cuáles son los bancos que aumentaron la cantidad de dinero a prestar y mejoraron sus condiciones

Por la competencia, los bancos mejoran las condiciones para calificar y prestan más dinero

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August 21, 2024

Through competition, banks improve qualification conditions and lend more money

Competition between banks took center stage and led four entities to modify their conditions Shutterstock



After five years without mortgage loans in Argentina , 21 banks have already launched their lines of loans , something that until four months ago seemed unthinkable. The announced lines of loans are exciting for the real estate sector since, by increasing the demand for properties because a greater number of people will be able to access their own roof, there will be an increase in housing prices , mainly in areas where the available options are scarce.

In this context, competition between entities takes center stage and banks look for ways to differentiate themselves and attract more clients to grant their loans. Therefore, it was learned that four banks decided to modify and increase their loan amounts since they announced their lines : Banco Ciudad, Banco Nación, Banco de Córdoba (Bancor) and el Hipotecario.



For the new generations, the dream of owning a home has not only become an increasingly unattainable goal . “Since the first announcement of a mortgage loan, 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. He added that “the possibility of financing part of the purchase through mortgage loans, added to low interest rates, will facilitate access to housing for a greater number of people.”

“ Mortgage credit is the true expression of social justice. Without it, only 5% of people who own their own home can afford to buy property, while the remaining 95% do so through inheritance and not because they were able to buy it,” said Daniel Tillard, president of Banco Nación.

21 banks entered the market with their mortgage credit linesGBJSTOCK - Shutterstock

Banks that increased the amounts to lend​

National Bank​

Banco Nación increased the maximum amount to be granted to $350 million, when at its launch it was $250 million, in its mortgage credit lines . The director of the entity, Alejandro Henke, in the framework of the Real Estate expo held last week, said that "properties have increased their prices in recent months, so we realized that in the period in which a person requested the credit, presented the documentation, the property was appraised and the credit was granted, the sale value had increased. That is why we decided to increase the maximum amount to $350 million."

The requirements and conditions for purchasing a property with a loan from Banco Nación are as follows:

• The rate is 4.5% for bank clients
• Financing is up to 75% of the sale value of the home to be purchased, which should not exceed a total of 140,000 UVAs (about US$120,000 - at the MEP value).
• Payment method in UVAs
• The ratio of the quota to the applicant's income must not exceed 25%
• The term to request the loan is up to 30 years
• The credit is intended for the purchase, change, construction, repair and expansion of homes throughout the country as well as for the acquisition of a second home.
• The maximum age to apply for it must not exceed 85 years at the time of completion of the payment schedule.
• You can add income from the cohabiting family group or from non-cohabiting co-debtors.
• Those who receive their salaries from the entity will have an “anti-inflation” option : when they apply for the loans they will be able to contract an option that will allow them to put a cap on the installment with a premium of 1.5% per year. The cap will result from applying an adjustment to the loan through the salary variation coefficient. The difference in the amounts will be transferred to the end of the loan updated by UVA, and once the payment schedule is finalized, the resulting balance will be rescheduled. This can be paid with a personal loan or with a mortgage extension.

City Bank​

Banco Ciudad , like Banco Nación, also increased the lending limit on its mortgage credit lines from $250 million to $350 million.

In turn, a key fact is that this Monday, it launched a new line of loans with a new mobility aimed mainly at young people: it allows adding income from guarantors, with a maximum of up to six people .

This initiative aims to allocate loans to those who do not have income or who do not have enough to access the required mortgage loan . In this way, they can gather up to a maximum of two holders per loan and each one can present up to two guarantors , where at least the latter must be active in order to be able to compute the income for the loanable amount. The applicant can provide income if he has it, together with the guarantor ; then the monthly payment of the installment is by debit from the account of the holder and the deed is made in the name of the applicant(s).



Since the launch of its line of credit on April 29, Banco Ciudad has granted more than 50 loans and another 100 loans are about to be signed . In addition, some 400 families with approved loans are looking for property. To date, more than 27,000 inquiries have been received .

These loans have the possibility of requesting an extension of the term if the amount of the installment to be paid exceeds 10% of the value of the installment resulting from having applied to that loan a capital adjustment by the Salary Variation Coefficient (CVS) since its disbursement. In these cases, the original term of the loan may be extended by up to 25% .

Mortgage loans excite the sector Archive

Requirements and conditions to buy a property with a loan from Banco Ciudad :

• Those who already receive or migrate their salary accreditation to Banco Ciudad can access it
• The credit is to buy, refurbish, improve or expand a first or second permanent or non-permanent home in all areas of influence of Banco Ciudad ( AMBA, provinces of Córdoba, Mendoza, Tucumán and Salta )
• The maximum loan amount is $350 million (up to 75% of the sales value of the unit to be acquired, and for the modality in which the applicant presents a guarantor, the maximum financing amount is up to 65%)
• The general line has an interest rate of 5.5% and a specific line for the microcenter, which has a preferential fixed rate of 3.5%
• The capital is adjustable by UVA
• Terms are up to 20 years
• The fee must not exceed 25% of the applicant's and/or his/her family group's income.
• The credit can be pre-cancelled in advance

Bank of Cordoba​

For its part, Banco de Córdoba (Bancor) announced today the increase in the maximum amount of the mortgage loan from $90 million to $273 million , that is, 250,000 Uvas.

According to official data, there are about 350 loans in different stages of being signed and more than $4.2 billion granted. In this context, more than 6,500 families have a positive rating.

In the last 30 days, the average daily influx of mortgage applications has tripled: 82% for home purchases and 28% for construction , completion and renovation. On the other hand, the Appto platform for home certification has registered more than 1,500 properties so far this year, with 2,247 houses and apartments available (29% in the interior of the province). This mortgage also contemplates the acquisition of homes through developers and, in this case, they offer the facility of deed registration with a purchase and sale agreement .

Bancor credit requirements and conditions :

• 100% of the purchase of the property or construction and expansion or completion is financed
• The term for financing is up to 20 years
• The capital is adjustable by UVAs with a rate of 4.90% throughout the term
• The maximum quota/income ratio percentage is 25%

Mortgage bank​

Banco Hipotecario was the first to launch its mortgage credit lines at the end of April, with a lending limit of up to $250 million. This point was modified by the entity and currently there is no limit on the amount .

In addition, the novelty of this entity is that the units of the project being built by Eduardo Costantini , founder of Consultatio, on Huergo Avenue can be acquired with a UVA mortgage loan . This news is a milestone for a real estate market that, until now, did not have the option of acquiring apartments under construction financed in the long term . “You can buy a studio apartment with a down payment of US$35,000 and then there are installments of US$800 or one million pesos that if you rent the property or put it up for managed rent you pay a large part of that monthly commitment,” José Ignacio Viñas, commercial director of Consultatio, tells LA NACION.

Requirements to access mortgage credit:

• The credit is unlimited in amount
• They finance up to 80% of the property to be purchased or built. Up to 50% in the case of a completed project. And 100% for an extension.
• It has a rate of 8.5% for the open market . While for clients who have a salary account , the first 12 installments have a rate of 4.25% and from the 13th installment it is 6.9%
• The maximum payment term is 360 months (30 years)
• The capital is adjustable by UVA
• The monthly fee to be paid cannot exceed 25% of the applicant's income.
• The loan is intended for first and second homes.

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