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The only bank offering loans of up to $100 million for home improvements without a mortgage has already granted more than 1,000 loans - Infobae
Source:
www.infobae.com
March 01, 2025
In three months, thousands of applicants have accessed this financing under the German amortization system to remodel, expand, or finish homes. How to make the most of the money and what are the requirements to obtain it?
By Jose Luis Cieri
This offer is positioned as a useful solution for those looking to modernize their homes without assuming the traditional conditions of mortgage loans (Illustrative Image Infobae)
Banco Ciudad is the only institution offering loans of up to $100 million for home renovations, expansions, or construction without the need to mortgage the property . Since its launch, this financing line has already granted more than 1,000 loans , with demand concentrated in the city of Buenos Aires and the province.
In just three months, the entity received more than 5,000 inquiries through its website , in a context of growing interest in accessing credit in the real estate market ( mortgage loans already average 1,000 transactions in CABA ).
Applications are mostly between $20 and $30 million, and are allocated to various types of projects , from the completion of homes under construction to the expansion of spaces such as terraces and patios. Unlike mortgage loans, which Banco Ciudad reintroduced at the end of April, these personal loans allow for financing renovations without pledging the property as collateral, making them an affordable alternative for those looking to improve their homes.
It allows borrowers to borrow up to $100 million with a maximum term of 10 years, under the German amortization system, which offers decreasing installments over time . Furthermore, the loan is denominated in UVA (Purchasing Value Units), which reduces the initial entry barrier, although this means assuming higher rates than mortgage rates. "The financing covers up to 100% of the construction budget, as long as it does not exceed 50% of the property's value," the entity reported.
Sebastián Senlle, product manager at Banco Ciudad, explained to Infobae that "one of the most notable aspects is the ability to undertake projects without mortgaging the home ," which sets it apart from other types of financing available.
Regarding facilities, users can apply for the loan in person or through the bank's microwebsite.
Applicants must be over 18 years of age, have verifiable income, and the fee must not exceed 20% of their net income.
Additionally, those who qualify for the loan can take advantage of promotions at construction material stores, such as 30% discounts and interest-free installments at stores like Easy and Blaisten, and discounts of up to 30% and six interest-free installments at various paint stores , among other stores in the sector.
Another advantage is the implementation of the German amortization system, which progressively reduces monthly payments by prioritizing principal payments from the outset of the loan. This feature helps minimize interest over time and represents "a significant saving compared to the French system, where payments remain constant but interest prevails on the initial payments," Senlle said.
Thus, UVA payments decrease over time as the outstanding balance and interest decrease.
The ability to add a guarantor to increase loan amounts and promotions associated with the purchase of materials are key to attracting more users.
It does not require a minimum income, and the resulting fee can comprise up to 20% of the demonstrable net income of applicants and/or guarantors.
The entity offers this line in CABA, AMBA and provinces such as Córdoba, Mendoza, Salta and Tucumán , in turn strengthening the market for construction and renovation of real estate.
Senlle added: “Beneficiaries can maximize the return on their financing and integrate energy efficiency improvements into their projects. Funded improvements include the installation of double- and triple-glazed windows (DVH), solar control systems such as awnings and curtains, and HVAC optimization with high-efficiency equipment.”
A complete kitchen remodel, with an efficient water heater and a budget of $10 million, would involve an initial fee of around $160,000 .
To optimize the money received from a personal loan, it is key to first allocate it to the purchase of finishing materials to avoid setbacks and loss of purchasing power (Illustrative Image Infobae)
It is also common to use the loan for home expansions, such as enclosing or building terraces and patios.
This benefit is part of AFIP Resolution 680/99 (currently ARCA), which regulates the VAT exemption for interest on loans intended for the purchase, construction, or improvement of a home.
To access the project, borrowers must submit to the City Government a plan of the project signed by a construction professional, certifying that the financing will effectively be used for housing development.
Having a detailed project allows for accurate cost estimates and avoids improvisations that increase the cost of the project. "A good budget saves time and money," he asserted.
Correa emphasized the importance of prioritizing electricity and sanitation systems . " Bathrooms and kitchens make the biggest difference , so they should receive the first loan resources," he explained. He also recommended addressing laundry facilities to avoid future problems .
Unforeseen events always arise during a project, from additional costs to deadline delays, but with good planning, they can be handled without problems.
"I recommend purchasing essential finishes like faucets, toilets, and wall coverings . As the project progresses, the budget tightens, and these purchases can become complicated. Securing them with credit allows for better pricing and availability," Correa concluded.
www.buysellba.com
Source:
El único banco que ofrece créditos de hasta $100 millones para refacción sin hipoteca ya otorgó más de 1.000 préstamos
En tres meses, miles de solicitantes accedieron a este financiamiento para remodelar, ampliar o construir viviendas. Cómo aprovechar mejor el dinero y cuáles son los requisitos para obtenerlo
www.infobae.com
March 01, 2025
In three months, thousands of applicants have accessed this financing under the German amortization system to remodel, expand, or finish homes. How to make the most of the money and what are the requirements to obtain it?
By Jose Luis Cieri
This offer is positioned as a useful solution for those looking to modernize their homes without assuming the traditional conditions of mortgage loans (Illustrative Image Infobae)
Banco Ciudad is the only institution offering loans of up to $100 million for home renovations, expansions, or construction without the need to mortgage the property . Since its launch, this financing line has already granted more than 1,000 loans , with demand concentrated in the city of Buenos Aires and the province.
In just three months, the entity received more than 5,000 inquiries through its website , in a context of growing interest in accessing credit in the real estate market ( mortgage loans already average 1,000 transactions in CABA ).
Applications are mostly between $20 and $30 million, and are allocated to various types of projects , from the completion of homes under construction to the expansion of spaces such as terraces and patios. Unlike mortgage loans, which Banco Ciudad reintroduced at the end of April, these personal loans allow for financing renovations without pledging the property as collateral, making them an affordable alternative for those looking to improve their homes.
It allows borrowers to borrow up to $100 million with a maximum term of 10 years, under the German amortization system, which offers decreasing installments over time . Furthermore, the loan is denominated in UVA (Purchasing Value Units), which reduces the initial entry barrier, although this means assuming higher rates than mortgage rates. "The financing covers up to 100% of the construction budget, as long as it does not exceed 50% of the property's value," the entity reported.
Sebastián Senlle, product manager at Banco Ciudad, explained to Infobae that "one of the most notable aspects is the ability to undertake projects without mortgaging the home ," which sets it apart from other types of financing available.
Conditions and advantages of the system
Among the eligibility requirements, applicants must be over 18 years of age, present verifiable income, and meet a debt-to-income ratio that limits payments to 20% of net income.Regarding facilities, users can apply for the loan in person or through the bank's microwebsite.
Applicants must be over 18 years of age, have verifiable income, and the fee must not exceed 20% of their net income.
Additionally, those who qualify for the loan can take advantage of promotions at construction material stores, such as 30% discounts and interest-free installments at stores like Easy and Blaisten, and discounts of up to 30% and six interest-free installments at various paint stores , among other stores in the sector.
Another advantage is the implementation of the German amortization system, which progressively reduces monthly payments by prioritizing principal payments from the outset of the loan. This feature helps minimize interest over time and represents "a significant saving compared to the French system, where payments remain constant but interest prevails on the initial payments," Senlle said.
Thus, UVA payments decrease over time as the outstanding balance and interest decrease.
The ability to add a guarantor to increase loan amounts and promotions associated with the purchase of materials are key to attracting more users.
It does not require a minimum income, and the resulting fee can comprise up to 20% of the demonstrable net income of applicants and/or guarantors.
The entity offers this line in CABA, AMBA and provinces such as Córdoba, Mendoza, Salta and Tucumán , in turn strengthening the market for construction and renovation of real estate.
Senlle added: “Beneficiaries can maximize the return on their financing and integrate energy efficiency improvements into their projects. Funded improvements include the installation of double- and triple-glazed windows (DVH), solar control systems such as awnings and curtains, and HVAC optimization with high-efficiency equipment.”
A complete kitchen remodel, with an efficient water heater and a budget of $10 million, would involve an initial fee of around $160,000 .
To optimize the money received from a personal loan, it is key to first allocate it to the purchase of finishing materials to avoid setbacks and loss of purchasing power (Illustrative Image Infobae)
It is also common to use the loan for home expansions, such as enclosing or building terraces and patios.
Tax benefits
Under certain conditions, the beneficiary may qualify for a VAT credit on the loan interest, which reduces the monthly payment. As the system is German, the initial payment varies according to the amount borrowed and decreases monthly. For example, for every $10,000,000 borrowed, the difference between a payment with and without VAT can be significant, generating considerable savings over time.This benefit is part of AFIP Resolution 680/99 (currently ARCA), which regulates the VAT exemption for interest on loans intended for the purchase, construction, or improvement of a home.
To access the project, borrowers must submit to the City Government a plan of the project signed by a construction professional, certifying that the financing will effectively be used for housing development.
Tips for spending well
Architect Gabriela Correa , a specialist in the design, management, and execution of new construction and renovations, offered recommendations on how to maximize your budget when undertaking a renovation.Having a detailed project allows for accurate cost estimates and avoids improvisations that increase the cost of the project. "A good budget saves time and money," he asserted.
Correa emphasized the importance of prioritizing electricity and sanitation systems . " Bathrooms and kitchens make the biggest difference , so they should receive the first loan resources," he explained. He also recommended addressing laundry facilities to avoid future problems .
Unforeseen events always arise during a project, from additional costs to deadline delays, but with good planning, they can be handled without problems.
"I recommend purchasing essential finishes like faucets, toilets, and wall coverings . As the project progresses, the budget tightens, and these purchases can become complicated. Securing them with credit allows for better pricing and availability," Correa concluded.
www.buysellba.com
