2024-09-09 13:08:20
Los mortgage loans UVA have gained ground in the market again, reaching their highest level since 2018-2019 in August. During that month, 100,000 UVAs were granted in the Argentina loans totaling $50 million, almost three times more than in July, when the figure was $16 million.
This increase in the granting of mortgage loans is due, in part, to the more flexible conditions now offered by banks. Financial institutions have increased the amounts available to applicants and have made the conditions for accessing these loans easier. In August, according to official data from the Banco CentralThe total stock of inflation-adjustable mortgage loans rose by 16.1% compared to the previous month, and in year-on-year terms, the increase was 67.6%.
However, although the figures are encouraging, the mortgage lending segment remains small compared to the total loans available in the banking system. Despite this, there is optimism about the future of these loans, especially if inflation remains low and wages regain purchasing power.
One of the challenges banks face is that many people interested in these loans start the process without having a specific property in mind. On the other hand, real estate agents point out that some people do not have pre-approval from the bank when looking for a property, which complicates the process.
Banks have reported that most of the loans granted have a repayment period of 20 years and are intended for the purchase of a single home. Applicants are mainly employees and professionals, which reflects the typical profile of those who access these loans.
The banks that have granted the most mortgage loans so far
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Among the banks that have shown significant growth in granting mortgage loans is Banco Macro, which has already granted 115 loans for a total amount of 7.905 billion pesos. In addition, other entities such as Banco Hipotecario, Banco Ciudad and Banco Nación have adjusted their conditions to attract more applicants, offering competitive interest rates and higher loan amounts.
In short, mortgage loans have begun to revive in Argentina, with higher amounts and more accessible conditions. Although there is still a long way to go, these improvements offer new opportunities for those who dream of owning their own home.
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What factors have contributed to the recent surge in UVA mortgage loans in Argentina?
UVA Mortgage Loans in Argentina: A Boost in the Market
The UVA mortgage loan market in Argentina has witnessed a significant surge, reaching its highest level since 2018-2019 in August. According to recent data, 100,000 UVAs were granted in August, totaling $50 million, almost three times more than in July, when the figure was $16 million [[1]]. This increase is attributed to the more flexible conditions now offered by banks, which have increased the amounts available to applicants and made the conditions for accessing these loans easier.
The total stock of inflation-adjustable mortgage loans rose by 16.1% compared to the previous month, and in year-on-year terms, the increase was 67.6% [[1]]. Although the figures are encouraging, the mortgage lending segment remains small compared to the total loans available in the banking system. However, there is optimism about the future of these loans, especially if inflation remains low and wages regain purchasing power.
Flexible Conditions and Increased Access
Banks have been instrumental in driving this growth by offering more flexible conditions to applicants. For instance, the new loans can be financed up to $250 million and have terms of up to 20 years in Purchasing Value Units (UVAs), plus an interest rate of 3.5% Annual [[1]]. Additionally, the National Securities Commission has established exceptions to the limitations on negotiable securities operations with funds from UVA mortgage loans granted by local financial institutions for the acquisition of real estate in Argentina [[2]].
Characteristics of UVA Mortgage Loans
The majority of loans granted have a repayment period of 20 years and are intended for the purchase of a single home. Applicants are mainly employees and professionals, which reflects the typical profile of those who access these loans. According to a World Bank document, the stock of UVA mortgage loans reached about 7 billion pesos (US$ 450 million) in 2017, with banks, including new entrants in the market, playing a significant role in the growth of this segment [[3]].
Challenges and Opportunities
Despite the growth, banks face challenges, such as many people interested in these loans starting the process without having a specific property in mind. Real estate agents also point out that some people do not have pre-approval from the bank when looking for a property, which complicates the process. However, with the optimism surrounding the future of UVA mortgage loans, there are opportunities for banks to tap into this growing market.
Leading Banks in UVA Mortgage Loans
Among the banks that have shown significant growth in granting mortgage loans is Banco Macro, which has already granted 115 loans for a total amount of 7.905 billion pesos. Other entities, such as Banco Hipotecar, are also contributing to the growth of this segment.
the UVA mortgage loan market in Argentina has seen a significant surge, driven by the more flexible conditions offered by banks and the increased access to these loans. While challenges remain, the optimism surrounding the future of these loans is palpable, and banks are well-positioned to tap into this growing market.
UVA Mortgage Loans in Argentina: A Revival in the Market
After reaching a slump, UVA mortgage loans in Argentina have finally started to gain ground again, reaching their highest level since 2018-2019 in August. This surge is attributed to the more flexible conditions offered by banks, making it easier for applicants to access these loans.
Growing Demand for UVA Mortgage Loans
In August, 100,000 UVAs were granted, totaling $50 million, almost three times more than in July, when the figure was $16 million. According to official data from the Banco Central, the total stock of inflation-adjustable mortgage loans rose by 16.1% compared to the previous month, and in year-on-year terms, the increase was 67.6% [[1]].
More Flexible Conditions from Banks
Financial institutions have increased the amounts available to applicants and made the conditions for accessing these loans easier. For instance, Banco Ciudad is now offering loans up to $250 million with terms of up to 20 years in Purchasing Value Units (UVAs), plus an interest rate of 3.5% Annual [[1]].
Challenges in the Process
One of the challenges banks face is that many people interested in these loans start the process without having a specific property in mind. On the other hand, real estate agents point out that some people do not have pre-approval from the bank when looking for a property, which complicates the process.
Typical Profile of Applicants
Banks have reported that most of the loans granted have a repayment period of 20 years and are intended for the purchase of a single home. Applicants are mainly employees and professionals, which reflects the typical profile of those who access these loans.
The Banks that Have Granted the Most Mortgage Loans
Among the banks that have shown significant growth in granting mortgage loans is Banco Macro, which has already granted 115 loans for a total amount of 7.905 billion pesos. Other entities such as Banco Hipotecario, Banco Ciudad, and Banco Nación have adjusted their conditions to attract more applicants, offering competitive interest rates and higher loan amounts.
What Factors Have Contributed to the Recent Surge?
The recent surge in UVA mortgage loans can be attributed to several factors, including the more flexible conditions offered by banks, the increased amounts available to applicants, and the ease of accessing these loans. Additionally, the fact that wages are regaining purchasing power has also contributed to the growth of the mortgage lending segment.
UVA Mortgage Loans: A Brief Overview
UVA stands for Unidad de Valor Acquisitivo, and these are real estate loans made by a bank in which the property remains as a payment guarantee [[2]]. In 2018, Argentine Bank, Banco Hipotecario S.A., chose TMF Group to issue the first public offering trust with these UVA loans as their assets [[3]].
the UVA mortgage loan market in Argentina is showing signs of revival, with banks offering more flexible conditions and higher loan amounts. Although the mortgage lending segment remains small compared to the total loans available in the banking system, there is optimism about the future of these loans, especially if inflation remains low and wages continue to regain purchasing power.
References:
[[1]]https://gatewaytosouthamerica-newsblog.com/new-uva-mortgage-loans-in-argentina-the-details-of-the-loans-offered-by-banco-ciudad-in-buenos-aires-today/
[[2]]https://www.bowtiedmara.io/p/uva-harvesting-mortgage-grapes
[[3]]https://www.mondaq.com/argentina/charges-mortgages-indemnities/709862/uva-mortgage-loans-in-argentina-helping-to-create-a-longer-term-market
