After the initial kick-off – or pressing the reset key – that Banco Hipotecario made by relaunching new lines of UVA credits for the purchase or construction of a home, another bank joined the movement. In this case, the City Bank, whose board of directors adjusted the final details of the operation this Wednesday. He National Bank It is also preparing an announcement, with some variants that aim to generate more confidence in the debtor.
As happened in the first stage of the UVA, public or semi-public banks they take the lead. Only at the end of the year could private banks join the market.
In the case of Banco Ciudad, the initial proposal that it will offer to its clients is summarized as follows: a maximum amount of 250 million pesos, with terms that will reach 20 years and an annual nominal rate of 5.5%, which will be 3.5% In the event that the credit is applied to the purchase of a property in the Buenos Aires microcenter. Basically, to transform an office into a home. This cheaper option is explained by the regulations of the government of the City of Buenos Aires that is providing facilities -among other taxes- for those who invest in an area that was very affected by the pandemicand that lost the vitality that was observed there until March 2020. Logically, in either case, The capital owed will be adjusted at par with the value of the Purchasing Value Unit (UVA), that is, inflation.
Two examples: for a loan of $10,000,000 for 20 years and a rate of 3.5% annually, the initial payment will be $58,149.47, at the current value of the UVA. In the event that the rate is 5.5%, the first installment will be 68,943.32
On Wednesday, the Hipotecario launched its credit line, also for a maximum of 250 million pesos, but for 30 years. It will offer a rate of 8.5% but for borrowers who have their salary account in that entity, the rate for the first 12 months will be 4.25%.
The Mortgage Holder and the City agree on a requirement. There will be priority in the granting of credits to those who have a salary account opened in those entities. Also in that it will finance up to 80% of the value of the operation.
The City board defined that they will offer a line that will allow the acquisition of first and second homes in all areas of influence of Banco Ciudad (AMBA, provinces of Córdoba, Mendoza, Tucumán and Salta), and another for the acquisition of a family home, unique and for permanent occupation in the Microcenter of the Autonomous City of Buenos Aires.
For his part, as this newspaper learned, the National Bank will go out to offer credits CER mortgages (the reference stabilization coefficient) because it does not want to use the name UVA, a “brand” that was hit by the problems caused by the inflation quota adjustment in a period – from 2018 to today – in which salaries suffered a strong fall in real terms. It is not yet known what said loan may be used for, for what maximum amount and at what rate.
We must remember that despite that blow to the pocket, heUVA mortgage delinquencies affect less than 1% of the more than 110,000 loans granted between 2016 and mid-2018.
Another novelty that the Nation’s mortgage line would introduce is that it would seek to include – it has not yet been defined whether it will be optional or mandatory – a kind of safewhose function will be protect the debtor in case inflation exceeds income. Specifically, in cases in which the fee to be paid is equivalent to a percentage of the debtor’s income higher than that pre-established at the beginning of the contract. That is to say: if it was agreed that the fee-income ratio should not exceed 25%, if that occurred at any time during the life of the loan, The insurance is activated, which will cover the difference above the 25% mentioned.