Banks lower rates and competition to finance homes is reactivated

Although the levels are still high in historical terms, the change in trend has already begun to reactivate inquiries and operations in the real estate market. In recent days, specifically, four entities They left them below 10%.

The full photo shows that, since their return in 2024 – after almost five years of practically being absent – the credits went through a process of raising rates that lasted for a year and took the average levels from 5% to 12%, and even in some cases to 15%. As a result, credit suffered: US$151 million were granted in February, the lowest level since September 2024 and 25% less year-on-year.

Now, since last December, a reverse process began: some entities began to lower rates, although they still did not cut everything they had raised in the previous period. “I think there is a change of cycle, but above all a concrete change: rates stopped rising and some began to fall”explained Federico González Rouco, economic strategy coordinator and housing specialist at Empiria Consultores. And he added: “Any rate reduction is positive for credit“It doesn’t mean that there is a lot of credit, but it does mean that there is more.”

The first move was made by BBVA, BBVA lowered the rate on its UVA mortgage loans for monotributistas and self-employed workers to 7.5%, in a key move to expand access to housing for independent workers. Then Santander joined, which cut from 15% to 9.5% and also adjusted conditions: less financing (70%) and shorter terms.

In recent weeks, other entities joined in. ICBC reduced its rate for clients for the second time, from 11% to 10.5%, and kept it at 12% for the rest. Banco Patagonia, meanwhile, lowered it from 14% to 12.5%.

Now, ICBC made a more aggressive move again and launched a new offer with a rate of 6.9% for those who prove salaries and 9.9% for the rest. In addition, it finances up to 80% of the property for 20 yearsallows adding family income and expands options to projects from a well.

“In a more stable context and with a slowdown in inflation expectations, we seek to pass on this improvement to our clients, making it easier for more people to access their home,” María Jimena Loria y Alemani, Product Manager of Mortgage Loans at ICBC, explained to Clarín.

This week there were also announcements from Banco Ciudad. The Government of the City of Buenos Aires launched a new line of UVA mortgage loans intended for the purchase of a first home, with a subsidized rate of 7.5% and down payments similar to a rental. The announcement was led by the Head of Government, Jorge Macri, who highlighted that the objective is to facilitate the middle class’s access to their own home through more accessible and long-term financing. The line allows you to cover up to 75% of the value of the property —with a ceiling of $100 million and units of up to 80 m²— and is aimed at both employed workers and monotributists and self-employed workers.

For González Rouco, the phenomenon occurs more because of a logical correction than because of what some call a “rate war.” “It is not so much that they compete with each other, but rather that each bank is retracing the path they have already taken. There was a very strong rise for a year and now the correction began“, said.

Although the decline is still incipient, it is beginning to have a direct impact on access. “Each point the rate drops reduces the income needed to qualify by approximately 10%. Therefore, a drop of three points is very relevant,” explained the economist specialized in the real estate market.

Today the rate range is approximately 6% to 15%, with a downward trend but still far from historically low levels. “There are banks that fell from 14% to 12% and others from 10% to 7.5% or 6.9%, but there is still a long way to go to complete the process.”he added.

The floor, however, seems to be close: “I can’t imagine rates much lower than 6% or 7% in the short term.”. “That depends on variables such as country risk, stability and the cost of funding,” he said.

According to the March monitor of the consulting firm Empiria, there was a start to the year without dynamism in construction and with a real estate market conditioned by high costs and weak credit. Activity remained unchanged in January (0.0% monthly) and remains 20% below November 2023, while the cost of construction in dollars rose 2.2% and has accumulated a strong increase since the end of that year. In parallel, mortgage credit fell again in February to its lowest in a year and a half, with a strong concentration of operations in Banco Nación, which explains about 90% of the loans.

For Soledad Balayán, owner of Maure Inmobiliaria, “the positive news is very recent; However, they never stopped asking for ‘creditworthy’ properties: that type of demand remained constant.”

In this context, the market shows disparate behaviors: operations are falling in credit-sensitive places such as CABA and Córdoba, while they are growing in the Province of Buenos Aires, Neuquén and Santa Fe. Sales prices had slight variations – increases in CABA and Córdoba, fall in Rosario – and rents marginally improved their profitability, although still below the maximums of 2025. With high costs and limited financing, the sector remains in a transition stage, waiting of a sustained drop in rates that allows demand to be reactivated.