Banco Ciudad launched a loan with affordable requirements and a subsidized rate well below the market rate to access a home in downtown Buenos Aires.
the market of rentals It is going through a complicated scenario due to the uncertainty surrounding the regulations that regulate them, the low supply and rising prices. In this context, in the City of Buenos Aires there is a loan to promote the rental of real estate in the Microcentro.
He city Bank launched a loan with accessible requirements and a subsidized rate well below the market rate to access a home in the center of Buenos Aires, within the framework of the plan of the local Executive to reconvert the area into a residential neighborhood after the void left by the impact of the pandemic and teleworking in a place dominated by offices.
The initiative covers the perimeter comprised of the following streets and avenues: Santa Fe, Crucero General Belgrano, Del Libertador, Leandro N. Alem, Paseo Colón, Belgrano, Bernardo de Irigoyen and Carlos Pellegrini.
The loan grants more than $270,000, equivalent to 1,200 UVAs, to allow for the initial expenses linked to income, such as moving, deposit, guarantee, month in advance, among others. It can be returned in monthly installments during the three-year period that the rental contract lasts.
The credit, which is already available both on the Banco Ciudad website and in the branches, will be updated according to inflation.
A differential aspect is the annual nominal rate (TNA) that stands at 47%, well below common personal loans that are around 85% or 90% of TNA and banks pay 78% for fixed terms .
This way, In a term of 36 months, the subsidized rate generates monthly installments of close to $6,100 for every $100,000 granted to the tenant, so a loan of $200,000 will have 36 payments of $12,200, while one for $270,000 will have installments of $16,470.
Both clients and non-customers of Banco Ciudad can access it, including employees in a dependency relationship, independent workers, monotributistas, retirees and pensioners.
Fees must not affect more than 30% of the applicant’s or family group’s income. Therefore, in order to receive the $270,000 and return it in three years, paying installments of $16,470, the blank income must be greater than $54,900 per month.
At the same time, the City Housing Institute (IVC) offers other financial assistance programs aimed at low- and medium-income tenants to rent in any Buenos Aires neighborhood.
- Guarantee +Easy: intended for families that do not have a property guarantee and that earn up to 7 minimum wages per month ($562,394). It allows you to get surety insurance with a 70% bonus to support rentals of up to 654 UVAs per month (today about $147,200). In addition, through Banco Ciudad you can access an extra 15% discount when paying with a debit card.
- Rent +Easy: intended for families that earn up to 7 minimum wages per month ($562,394) and who rent up to 654 UVAs per month (today $147,200). It allows them to access a loan of up to three months of rent. It must be returned to the IVC in 12, 24 or 36 installments that will be updated for inflation, which may not be greater than the average salary.
Source: Ambito
