Buying a house with UVA mortgage loans: which bank has the lowest fee and what may change after the Government’s announcement

The interest rate, the term of the loan, the required income and the percentage of the property value that each bank is willing to finance are some of the aspects that can significantly modify the cost and conditions of credit.

In this context, the Minister of Economy, Luis Caputoannounced this Wednesday, at a press conference, an initiative to generate long-term public deposits that allow adding loanable funds for housing credit adjusted by UVA.

In this way, the Government seeks to give banks long-term and cheaper financing so that they can lend more money to those who need a mortgage to buybuild or improve your first home.

Although UVA mortgage loans show a recovery, they have not yet reached the levels recorded in 2025, explains Federico González Roucoeconomist at Empiria Consultores. Around US$202 million in UVA credits were disbursed in July, the highest monthly volume since December 2025. Howeverthe amount was 28% below of the monthly average of 2025 prior to the electoral period.

The scenario reflects that there is interest in resuming access to mortgage credit, although the financing conditions and, especially, the income necessary to access housing continue to be determining factors.

In this context, the economist maintains that the real estate market, particularly in the AMBA, “is on pause”. And he adds that “although the last two months showed a slight improvement compared to the previous ones, effective demand is still below potential. We continue in a housing market that very few people access“.

Minister Caputo announced a new mechanism to promote mortgage credit, through which the Sustainability Guarantee Fund (FGS) will tender fixed-term deposits adjusted by UVA among banks. The objective is for entities to have longer-term funding to expand the supply of loans for the purchase, construction, expansion and renovation of homes.

1. The FGS makes $2 billion available to banks

It is not given directly to them to lend to families. The FGS places that money in fixed terms adjusted by UVA, through tenders.

2. Banks compete for those funds

The money will be delivered in different tenders of $200,000 million each. The first will be next week.

3. Banks receive funds in terms of 1 to 5 years

This is important because banks need to obtain long-term financing to be able to grant mortgages, which can last 15, 20 or 30 years.

4. In exchange, banks must lend that money for housing

The funds must be used for loans intended to buy, build, expand or renovate a first home.

5. The Government puts a limit on the rate of these credits

Mortgage loans granted with these funds may have as maximum a UVA rate + 7.5%with a minimum term of 15 years and even 150,000 UVA per credit.

Therefore, the objective is to have more offer of mortgage loans and potentially better conditions, but the concrete effect will depend on how many banks participate, how much money they take and how many loans they end up granting.

As an example, the minister explained that for a property valued at US$ 106,667 and considering financing equivalent to 75% of the value of the propertythe amount of the mortgage loan would amount to $ 120.920.000. Over a period of 25 years and assuming a UVA rate + 7%the Estimated down payment would be $865,098which would require a monthly net household income of $3,460,391 in order to meet a fee/income ratio of 25%.

A survey by Empiria Consultores, released in August, allows compare the cost of the down payment for a UVA mortgage loan equivalent to US$ 100,000. The difference between the entities is considerable.

Below, initial payment values ​​for a UVA mortgage loan equivalent to US$ 100,000, with rates ranging from 6.7% to 15%:

• Bank of Neuquén $878.640

• Bank of Rosario $934.100

• Petersen Group / BanCor $1.353.360

• Comafi / Galicia / Santander $1.412.180

• Current Bank $1.451.980

• Mortgage bank $1.582.000

• Bank of Chubut $1.628.030

The data allows sizing how much the fee can change depending on the chosen entity. But it does not mean that the buyer can automatically access the bank that appears with the lowest value: each line has different requirements, rates, terms and conditions.

The quota is not the only filter. Before approving a loan, banks analyze the income of the applicant and his ability to face debt. For a loan of US$ 100,000, the Empiria survey estimates an approximate minimum income of:

• Nation Bank: $ 3.910.380

• Bank of Neuquén: $ 2.928.800

Furthermore, the relationship between the fee and income is usually around 25%, although some entities allow it to reach 30%.

Extending credit over 25 or 30 years can help the initial payment is more affordable and, therefore, to comply with the quota-income relationship. But it also means keep the debt for longer.

Therefore, if your income allows you to cover a larger payment without being too tight, it may be useful to compare how much the total cost of the loan changes by reducing the term.

In a UVA credit, in addition, the analysis must consider that capital is updated. It is not advisable to evaluate the operation only with the first month’s payment.

Not necessarily. If those US$100,000 represent the amount of the loan and the bank finances 75% of the value of the home, the property should have an approximate value of up to US$ 133.333provided all other conditions of the line are met.

In this scenario, the buyer should have around US$ 33.333 propiosplus the operation expenses.

This difference between the amount of the credit and the price of the property is one of the first things to do.