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What is the rate of the new mortgage loan of up to $250 million to be paid in 30 years? - La Nacion Propiedades
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Cuál es la tasa del nuevo crédito hipotecario de hasta $250 millones a pagar en 30 años
Luego de cinco años de casi no tener crédito hipotecario en la Argentina, un banco lanza una propuesta en UVA para solicitar hasta $250.000.000 a pagar en 30 años; cuál es la tasa
www.lanacion.com.ar
April 24, 2024
After five years of almost having no mortgage credit in Argentina, a bank launches a proposal at UVA to request up to $250,000,000 to be paid in 30 years; what is the rate
By Maria Josefina Lanzi
After five years of deep lethargy, mortgage credit in Argentina woke up.
After five years of deep lethargy, mortgage credit in Argentina woke up. The person in charge of promoting it was Banco Hipotecario, which announced yesterday a line of credit that can open new hope for those who have long sought access to this possibility to buy a house.
This is a mortgage credit line at UVA with a final rate of 8.65%. For those who are clients of the bank and have assets, there is a benefit of 50% of the fee during the first year, that is, 4.4% final for 12 months . It is officially launched on the market during the month of May, with a date yet to be confirmed, and for some experts it is a rebirth of the years 2016 to 2018, where the UVA credit emerged and many began to apply for this loan.
The requirements to access the mortgage loan 2024
To buy a house
The requirements that the Mortgage Bank sets as a condition to request this loan are the following:- The credit is for up to $250 million in a single disbursement.
- They finance up to 80% of the home . Whoever requests it must have the remaining 20%, which is paid in advance.
- The credit must be used for a first or second home.
- It has a rate of 8.5%. The first 12 installments for clients with bank credit have a rate of 4.25%, which means a 50% promotion in the first year (with the total financial cost: final rate of 8.65%; 4.4% final the first year for salary accounts).
- The maximum payment term is 360 months (30 years).
- The capital is adjustable by UVA.
- The monthly fee payable cannot exceed 25% of the applicant's income.
To illustrate, Rouco says that for every US$50,000 loan (not the value of the home), a 25-year term, installments of $400,000 will be requested, and a blank income of $1.6 million from the debtor household is required. In the case of a couple (debtor household) the income can be added and request the loan together and, therefore, request more money. In that case, “to buy something for US$125,000, you need income of approximately $3.2 million. Today we are talking about four average salaries.”
In addition to the fact that this line of credit can be requested for the purchase of a first or second home, it is also granted for the construction, completion and expansion of homes.
For construction of a house
- The credit is for up to $250 million with an advance payment and two disbursements against progress of the work.
- They finance up to 80% of the construction budget.
- The credit must be used for the construction of a first or second home.
- It has a rate of 8.5%. The first 12 installments for clients with bank credit have a rate of 4.25%, which means a 50% promotion in the first year (with the total financial cost: final rate of 8.65%; 4.4% final the first year for salary accounts).
- The maximum payment term is 360 months (30 years).
- The capital is adjustable by UVA.
- The monthly fee payable cannot exceed 25% of the applicant's income.
For finishing a house
- The credit is for up to $125 million in a single disbursement.
- They finance up to 50% of the construction budget.
- The credit must be used to complete the first or second home.
- It has a rate of 8.5%. The first 12 installments for clients with bank credit have a rate of 4.25%, which means a 50% promotion in the first year (with the total financial cost: final rate of 8.65%; 4.4% final the first year for salary accounts).
- The maximum payment term is 360 months (30 years).
- The capital is adjustable by UVA.
- The monthly fee payable cannot exceed 25% of the applicant's income.
For house extension
- The credit is for up to $125 million in a single disbursement.
- They finance up to 100% of the budget without exceeding 35% of the value of the current guarantee.
- The credit must be used to expand the first or second home.
- It has a rate of 8.5%. The first 12 installments for clients with bank credit have a rate of 4.25%, which means a 50% promotion in the first year (with the total financial cost: final rate of 8.65%; 4.4% final the first year for salary accounts).
- The maximum payment term is 360 months (30 years).
- The capital is adjustable by UVA.
- The monthly fee payable cannot exceed 25% of the applicant's income.
An example of a fee for clients and non-clients of Banco Hipotecario would be like this: every $1,000,000 for 30 years, those who are clients and credit their salary there will pay a fee of $5,050 with a preferential rate of 4.25% the first year; Those who are not clients of the bank will pay a fee of $7,820 in that same period.
For almost five years there has been no possibility of mortgage credit in Argentina
Five years without mortgage credit in Argentina
The phenomenon occurs in a context in which there is practically no mortgage credit offer in Argentina. “ It is the first one that is coming out after a long time of almost no credit . It existed, but there was little. The Bank of Córdoba came with something, but it was very specific for that province. On the other hand, many banks were very reluctant to provide mortgage credit , since the possibility that Alberto Fernández's government would modify the conditions was very latent, something that was discussed every few months," says Federico González Rouco, economist at the consulting firm. Empiria, led by Hernán Lacunza, former Minister of Economy.“ It diametrically changes the credit policy that the banks had during the last five years, when they would have banished mortgage credit from their offering portfolio ,” says José Rozados, director of Reporte Inmobiliario, and adds: “I think this was something unthinkable in December of last year. In fact, I think that anyone who was planning it, looking at the market, ruled out the reappearance of mortgage credit in 2024. It came through the window and it is very good news.” The president of the Chamber of Urban Developers (CEDU), Damián Tabakman, maintains that “it is great news for the real estate market, something we have been waiting for for years .” Furthermore, he adds that the moment it came out was a surprise: “We thought it was going to come, but we believed it was going to be when inflation dropped a little more and frankly we were surprised that it emerged now.”
Rouco, who recently wrote the book The Dream of One's Own Home , edited and published by Tejido Urbano, adds that this is a good sign, but that we will have to see from now on how demand evolves: “ It will not be a boom, but a process, but it is good that that process starts and this measure represents its beginning.”
This is a line of mortgage credit at UVA with a final rate of 8.65%, although 4.4% final during the first year, for those who are clients of the bank and prove assets there.
“They finance up to 80% of the value, when it is generally 75%, so the barrier to access is lower. It is still a lot, but it means less than on other occasions,” explains Rouco and, regarding the income required to be able to apply for the loan, he points out: “They are levels close to those that someone from the middle or upper middle class could access . ”
When asked if other banks will also venture into the possibility of offering a mortgage loan, Rozados' response is that they probably will. “It will surely be a kick-start that will force other banks to accelerate the process, so as not to lose customer market share,” says Rozados and adds: “Banks use mortgage credit as an anchor to have captive clients in the long term, since which is a way to insure them for 10, 15 or 20 years, and also to attract new ones.”
Mortgage credit over time
If the mortgage credit numbers in our country are analyzed, today it is practically zero and has always maintained very low figures. At the best moment, which took place in 2001, the mass of mortgage credit represented 5% of GDP, that is, all the debt that the country had represented 5% of what is produced in a year in Argentina.“Anyone has the idea that at that time we were in a very good time, but in international comparison it was not fabulous at all. Today Chile has 27% to 28%; United States, 75% to 80%. And at the best moment we only had 5% ,” says Rouco. Added to that, today the credit in the country is almost zero; If the pandemic is not taken into account, February was the month with the least mortgage credit in 22 years.
The Banco Hipotecario credit is officially launched on the market on May 6
In 2016, the UVA (mortgage loan that is indexed to the Purchasing Value Unit - UVA) was created and, since then, a mortgage credit boom occurred again in Argentina that lasted approximately two years. Until then, the loans were paid through a fixed fee, something unthinkable for the inflationary context of today's Argentina. To access it it was required to have approximately five average salaries; Furthermore, so that the creditor did not lose money, he requested very high initial payments, since they would not vary throughout the year. “But in the unstable context of the country, with one of the highest inflations in the world, few dared to lend money with that legal framework. That is why there was never a mortgage loan; People couldn't access it,” explains Rouco.
The UVA credit, when adjusted month by month for inflation, allows the initial payment to not be so high; In addition, it is not necessary to have that much average income to apply for it . This measure, with specific variations in their contexts, was taken by several countries, such as Mexico, Colombia and Chile more than 60 years ago, when they were also going through moments of inflation: “Everyone starts with these schemes when they have inflation,” comments Rouco and adds : “Other countries, with more stable economies, can grant loans with fixed installments.”
In any case, the UVA credit was highly criticized by broad sectors , since, when adjusted for inflation, it could make the situation very difficult for the debtor, who was faced with having to pay very high installments that did not increase at the same rate as salaries. . Other experts share that the situation may have been difficult with the current context of inflation, but the default of UVA debtors is 1%, “something very low” in the words of Rouco.
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