The reintroduction of mortgage credit lines registered a notable response from the public, with 13 financial entities receiving nearly 300,000 inquiries in the four weeks since the first announcement made by Banco Hipotecario at the end of April.
The greatest demand is concentrated in properties of less than US$100,000, according to real estate sector experts, and the wave of plans is expected to be delivered in approximately 40 days.
From the Mortgage Holder, for example, they confirmed that They already have 41,000 people and families registered in the prequalification stage.
Banco Ciudad delivered its first mortgage loan
At Banco Ciudad, more than 14,000 forms were completed and 4,500 in-person visits were recorded.
Since the end of April, Banco Ciudad received more than 14,000 mortgage loan applications, and 250 are in the final process. Yamila Ciminera, a 31-year-old accountant, was the first to receive a loan to buy a home in Villa Devoto. The signing of the deed was carried out at the Catalinas branch, accompanied by the Head of the Buenos Aires Government, Jorge Macri, and the president of Banco Ciudad, Guillermo Laje.
Ciminera registered on the bank’s website on May 8 and received loan approval within a week. got a 20-year loan of $100,000,000 that will cover 57% of the value of the property.
Banco Ciudad delivered its first mortgage loan to accountant Yamila Ciminera.
After five years without availability, the reappearance of housing credit has revived the hope of thousands of people and families who aspire to have their own home, expand it or renovate it.
At Banco Supervielle, visits to the page with credit information exceeded 100,000 in the first week and requests remain constant, with more than 7,000 queries.
While at Banco Macro, sources from the entity confirmed that 18,500 queries were received in 10 days. “The great interest, above all, is on the part of young people under 30 years of age who can access up to 90% of housing financing.”
Mortgage loans: real estate inquiries grew by 25%
According to Miguel Chej Muse, from Inmobinet Propiedades and the Market Observatory of the Buenos Aires Real Estate Association, “real estate agencies are receiving inquiries. 25% more than a month ago. And although a significant number of credits can be reached in the next 60 or 70 days, we must keep in mind that these processes must be as brief as possible to avoid complications.
From the Observatory they reported that in the first four months of 2018, 7,780 mortgages were made in CABA, compared to the 368 mortgaged during the same period of this year.
“If the economic and exchange context remains stable, We could reach 3,000 writings in the coming months. It is essential that real estate intermediaries accompany the client throughout the entire process to accelerate the operation and prevent chained transactions from being delayed.”
In addition, he noted that operations may be complicated by the recent fluctuation of the dollar. “With the 25% rise in the dollar, many are wondering how to cover the difference when settling in pesos. From the Real Estate College we are studying a presentation to change the regulations with the Central Bank and allow operating with the MEP dollar without parking, or return to the previous regulations, which allowed banks to sell official dollars during the writing”Chej Muse explained.
The process for the Banco Ciudad mortgage loan to be made was quick, which has been expedited thanks to the remote virtual appraisal.
“The political decision and the no need to send appraisers allowed for faster operations. It remains to be seen how other banks will operate and if they will adopt a similar system,” he added.
What type of homes are the most in demand?
Regarding the homes that will be marketed most in the City of Buenos Aires and in the province of Buenos Aires, it is projected that the most in demand will be those with a value equal to or less than 100,000 dollars.
“The majority of potential mortgage clients will be in that price range,” said Mariano García Malbrán, president of the Chamber of Real Estate Services Companies.
With these values, in the province of Buenos Aires, buyers could purchase apartments with up to three rooms, small houses or townhouses. In CABA, they would opt for apartments with up to two rooms in central areas or some PH in more remote areas, such as Villa Lugano.
Ciudad, Hipotecario and Supervielle were three of the first banks to offer mortgage loans again.
Real estate agencies are betting that people with savings allocate the largest amount possible to purchase properties.
García Malbrán noted: “You need to have at least 25% of the cost of the home to cover the down payment, commissions, deed and mortgage. We hope that buyers request what they need to purchase apartments, townhouses or houses at an opportunity price.”
It is estimated that purchase and sale values would not continue to decrease and based on the inquiries received, three-room apartments are the most in demand due to their size suitable for small families and their versatility, allowing additional uses such as studios or teleworking spaces.
“These properties tend to appreciate well, being a safe investment. Their ability to adapt to various needs makes them an attractive option in the real estate market,” explained Armando Pepe, Real Estate expert and founding member of the Argentine Real Estate Chamber.
The new mortgage credit schemes seem to be more stable than those of 2016-2018, since they have adjustments less dependent on inflation. Current borrowers are advised to evaluate the sustainability of the credit, consider the stability and growth of their income, consult with a financial advisor, compare different credit options and plan for the long term.
For specialists, this type of mortgage loans are safer, because their adjustments depend less on inflation.
Pepe expanded: “These steps help ensure that they can manage payments more effectively, avoiding the instability problems of the past. With proper planning, new mortgage loans can be a viable and safe option to access home ownership.” .
From the sector, they maintain that the credit will mainly streamline the segment of properties below US$250,000, focusing on various areas of the different Buenos Aires neighborhoods. It is also positive that the option to acquire a second home has been included, either for those looking to expand or for investment. Neighborhoods such as Recoleta, Palermo and Belgrano were historically positioned as a haven of value and today present a purchase opportunity through mortgage credit.”concluded García Malbrán.
