Eleven of the 23 banks that offer mortgage loans adjusted their conditions, mainly by increasing the Annual Nominal Rate (TNA)
The mortgage loans which were launched 9 months ago, generated a significant impact on the real estate market.
The return of UVA loans, backed by 23 banks, revitalized the sector. This rebound was reflected in a significant increase in real estate transactions: in November 2024, 5,755 deeds were registered in the city of Buenos Aires, an increase of more than 41.5% compared to the same month in 2023, according to data from the Buenos Aires Notary School.
Currently, 23 banks offer lines adjusted to Purchasing Value Units (UVA), with rates ranging from 3.5% to 9.5%.
rental real estate mortgage loans
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Mortgage loan rates rise
However, there was an adjustment in loans that began to change the situation. Eleven of the 23 banks that offer mortgage loans adjusted their conditions, mainly by increasing the Annual Nominal Rate (TNA) and, in some cases, modified the terms and amounts of the loans. Thus, as rates rise, so does the cost of borrowing, which slows down market activity.
To date, US$830 million have been granted in mortgage loans UVA (of which US$240 million was in December, the highest amount since May 2018).
Increases in interest rates affect the accessibility of credit, since when the rate is high, so is the initial payment. Although the market shows a strong push for credit, banks had to come out to finance large loans for buyers, which led to the decision of many to raise rates.
Property search grows
According to data from Zonaprop, the number of searches for the purchase of real estate grew by 83% compared to the previous year. And mortgage loans were partly the driving force behind this.
According to a report by Alprestamo, despite these advances, mortgage credit in Argentina represents only 0.2% of the Gross Domestic Product (GDP). This percentage contrasts sharply with regional averages, which range between 5% and 10%. At the regional level, mortgage credit is equivalent to 8% of GDP, well below the European average (37%) and the United States (70%). Countries like Chile present higher figures, reaching close to 30%, which reflects more consolidated access to housing credit.
How are the rates today in the 11 banks that modified them
- Brubank: The rate increased to 9% for a salary account (previously 5.5%) and to 14% without a salary account (previously it was 8%).
- City Bank: increased the maximum amount to be loaned from $250 million to $350 million and raised the rate from 5.5% to 6.9%. It maintained the preferential rate of 3.5% in some sectors of the city of Buenos Aires.
- Galicia: The rate increased from 5.5% to 7% for salary account and from 7.5% to 9% without salary account.
- Bancor: increased its rate from 4.9% to 6.9% for salary accounts and reduced property financing from 100% to 75%.
- Macro: raised the rate to 6.5% for salary account (previously 5.5%) and to 8% without salary account (previously 7%)
- Patagonia: increased the maximum amount from $250 million to $320 million, with a rate that went from 4.9% to 5.4%
- Santander: increased the rate from 5.5% to 7%
- Supervielle: Reduced the term from 30 to 15 years, raised the rate to 8.5% (previously 5.5%) and decreased financing from 80% to 70%
- BBVA: increased the rate from 5.5% to 6.5% for salary accounts
- Mortgage: reduced the maximum term from 30 to 20 years, set a cap of $250 million and increased the rate to 9.5% (previously 6.9%)
- ICBC: the rate increased from 5% to 6.9% for a salary account and from 7.5% to 8.9% without a salary account, extending the term to 20 years
Source: Ambito
I’m a recent graduate of the University of Missouri with a degree in journalism. I started working as a news reporter for 24 Hours World about two years ago, and I’ve been writing articles ever since. My main focus is automotive news, but I’ve also written about politics, lifestyle, and entertainment.
