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What happened to mortgage loans? After 5 months of growth, property sales fell in June - La Nacion Propiedades
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¿Qué pasó con los créditos hipotecarios?: después de 5 meses en alza, en junio cayó la venta de propiedades
Aunque este mes fue el mejor junio de los últimos cinco años, registró una baja en la venta de propiedades ubicadas en la Ciudad de Buenos Aires con respecto a mayo. ¿Qué pasó con el auge de los créditos hipotecarios?
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July 25, 2024
Although this month was the best June in the last five years, it registered a drop in the sale of properties located in the City of Buenos Aires compared to May. What happened to the boom in mortgage loans?
By Candela Contreras
June saw fewer deeds than last month, but still better than last year
After witnessing a notable rise in the first five months of the year , the deeds in the city of Buenos Aires showed a surprising drop in June 2024 : a total of 4,232 deeds were registered in the city of Buenos Aires , 7.98% less than in the previous month, in which 4,590 deeds were registered. Despite this number, they continue to be above closed sales: it is 27.47% more than June of last year . Another encouraging fact is that they are also above June 2019 when 2,965 were signed and at similar values to the acts of 2018 when there were 4,630.
The data shared reflects being the best June in the last five years and encourages the expectations of the sector after the debacle of the pandemic, when the prices at which a sale ended up being closed collapsed by more than 35%. In addition, according to data from the College of Notaries of the city, the total amount of transactions in June reached $362,001 million , 350.25% more than June of the previous year.
Deeds closed in June in CABA during the last 10 years
Other figures revealed by the report that the College prepares every month are that in the sixth month of the year, the average amount of transactions was $85,539,116 ( US$90,730 according to the average official exchange rate): that is, it grew 253.26% in one year in pesos, while in the US currency it fell 2.46% .
As for the comparison with the deeds formalized with a mortgage, real estate specialists expected an upturn in the data as a consequence of the boom in UVA mortgage loans . Despite this, the numbers in the report show that in June there were only 115 deeds formalized with a mortgage , 5.5% more than the same month last year, but 18% less than in May when there were a total of 141 deeds with credit.
“In the year-on-year measurement, we continue to have a good outlook with a 27% increase. In the month-on-month measurement, a small decrease compared to May. But the data we take into account is that in the measurements, mortgage credit has not yet taken off since it is at the same usual values ,” says the president of the College of Notaries of the City of Buenos Aires, Jorge De Bártolo . Although May had given a signal that the market was preparing for a scenario with mortgages, “ for the moment they are inquiries . We hope that the second semester will have that necessary takeoff,” he adds.
Germán Gómez Picasso, founder of Reporte Inmobiliario, emphasizes this: “It is true that the improvement in sales through credit has not yet been verified, but it must be taken into account that banks are building structures and implementing new processes . It is to be expected that the granting of loans will be very slow in the first few months, and we must not forget the increases in the dollar exchange rate in recent months.”
The evolution, by semester, of the deeds closed with bank mortgages
The College says that in the first half of the year, the total number of mortgages is 624, a number similar to that of last year. “On the other hand, when the UVA credits were all the rage, in just one month there were 2,400.” That is to say, in six months only 25% of what was registered in a single month with the UVA was obtained . “The number for June is good because it is in line with what is coming in the year, as long as there is no credit we will be around this amount ,” says De Bártolo.
" Banks are adjusting themselves , they are not able to cope with the orders they have and they are rearranging their logistics to be able to give loans, but surely in two or three months we will begin to see the growth of deeds with mortgage loans," concludes Gómez Picasso.
Mortgage loans: What documentation do you need to get a loan?
Applying for a mortgage to buy a home is one of the most difficult decisions a person makes in their financial life . Therefore, the return of UVA loans to Argentina, by the hand of 21 banks, sparked the interest of many who dream of accessing their own home . “From the first announcement of the mortgage loan, a huge expectation was aroused within the market and among those interested in being able to access a home,” said a hopeful José Rozados, director of Reporte Inmobiliario, within the framework of the seminar held by the College of Notaries of the city of Buenos Aires .The new cycle of mortgage loans not only appears as a viable option to consider when dealing with rent, but also has its opportunities and weaknesses. “ It is very important that the communication between the parties is very didactic and very clear , from all sectors (banks, notaries, real estate channel). In addition, not all properties are suitable for credit, because if the seller is not willing to be so, they will be left out ,” explains Rozados.
The great challenge in this context is that the process is efficient and without delays. Therefore, “one of the fundamental items is that of simultaneity: it is very important that the notary is present from the beginning of the credit application in that act ,” said the president of the College of Notaries of the city, Jorge De Bartolo. And he added that “when mortgage loans begin, everything automatically speeds up. We are preparing for a notable increase in the number of deeds .”
There are now 21 banks that have announced their mortgage credit linesGBJSTOCK - Shutterstock
On the buyer's side
The essential documents to be presented by the buyer, who must be solvent, that is, he/she can prove his/her income and has a credit history, are:- The National Identity Document (DNI)
- A utility or tax bill in your name to verify your address
- Dependency and Retirement Relationship: the last salary/asset receipt (in case of not crediting salary/assets to the Bank)
- Self-employed: certification of net income (net profit) issued by a public accountant with a signature certified by the Professional Council of Economic Sciences for the last 12 months.
- Monotributista: last three or six (depending on the bank) proof of payment of the monotributo.
In all cases, you must not have any unfavorable records in reporting agencies or with the Central Bank of the Argentine Republic during the last 12 months.
On the seller's side
For his part, according to what was provided by notaries, the owner must present the following instruments to the bank , so that the buyer can manage the credit:- Photocopy of deed of ownership (title of ownership)
- A municipal plan in the case of the province of Buenos Aires and, for properties in CABA, the horizontal property plan and the property and administration regulations. In addition, if it exists, the internal plan and the approved subdivision plan of the property (technical document that shows how a real estate property is divided into different parcels or lots).
- Reservation instrument ad referendum (subject to approval) of the granting of credit, with the following data : name, surname, ID, address, telephone number and e-mail of the buyer; name, surname, ID, telephone number and e-mail of the seller.
- Property information : street, number, floor, apartment, functional unit number (according to the subdivision plan and horizontal property regulations), complementary unit number (such as, for example, the garage or storage room), location.
- Value of the property , which will then be appraised by the bank.
In the case of a loan for the realization of building improvements on a property, the following must be attached: the deed of the property and the plans of the works to be carried out certified by an engineer or architect with their respective certifications before the professional associations that govern the registration.
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