The first two months of 2017 demonstrated a take-off of mortgage credit that had not been observed since the mid-1990s, when its last expansion took place. According to data from the Central Bank of Argentina (BCRA) at the end of February, total mortgage loans amounted to approximately $ 65 billion, compared to more than one billion pesos ($ 1,108,798,000,000) of total loans of the financial system, and only represent 6.5% of the total.
One of the novelties is that for the first time in Argentina coexist in the system four varieties of mortgage loans. The majority of the banks grant indexed by UVA (Acquisition Value Unit) while other banks, such as HSBC, grant the traditional fixed rate. Banco Nación credits indexed by CVS (Salary Variation Coefficient) and Banco Hipotecario together with some private and public offer Procrear, which will be modified in the coming days.
In a video made by the BCRA, step by step explains the mortgage loan UVA to buy a home: how the value is updated and what is the initial fee, which is always maintained as a stable portion of the income of the applicant .
For example, a loan of $ 1 million to 15 years is granted with an initial fee of $ 20,000 for a traditional loan, while with the UVA, the first installment is around 8,000 pesos. And it is estimated that this monthly payment may fall even more in the city of Buenos Aires. It is that after passing through the Buenosairean Legislature, the Government of the City regulated the decrease of Gross Revenue in the quotas.
The Government has the objective of delivering 10,000 mortgage loans per month between public and private banks
Martín Mura, Buenosairean Minister of Finance, estimated that the fixing of a differential rate of 1.5% for mortgages granted by financial institutions, instead of the 7% that hitherto governed, would imply a reduction of the loan quota of 10 % to 15%, according to the term.
The Government has a clear target number. While the government delivered 2,000 loans per month on average in the last three months, in a year it seeks to raise that figure to 10,000 between the public and private banks, with an average loan of 1 million pesos.
Mortgage loans adjusted for inflation are not the only element related to this unit, since the market also offers fixed periods in UVA with a minimum term of 180 days.
