The return of mortgage loan set in UVAthe unit that follows inflation and allows banks to lend in a context of rising prices, was unanimously celebrated economic news in recent months.
The motives? Its reappearance is associated with the gradual slowdown of inflation, a healthy turnaround in the financial system (redirecting credit from the public sector to citizens) and also with many families reactivating the desire to access their own home.
However, given the current income map in an impoverished Argentina, the universe of people who can access the different lines is very limited.
For the upper section of the social pyramid, on the other hand, they are a more than interesting possibility: families who also have some savings and today pay rent that can be transferred to the payment of the home itself.
In a generous calculation, if it is about obtaining a loan that covers most of the minimum price of a typical middle-class house (floor credit of US$ 50 thousand); less than 20% of families have a monthly income greater than $1,700,000; the minimum floor that generally appears as a requirement in the banks’ offer to be able to lend that amount.
Furthermore, all lines finance between 75% and 80% of the final price of the home (only Bancor covers 100%), which implies that the debtor must have the rest.
UVA credits: income and value of the fee
The range of proposals among the 16 entities has differences in costs and nuances between the requirements. But the common criterion is that the monthly fee that the debtor must pay does not compromise more than 25% of the total income that was accredited. In the example mentioned (for US$ 50 thousand), the fee starts at $ 430 thousand per month.
This is a reasonable income-fee ratio level to ensure viability of loan repayment.
A positive fact is that most lines allow adding income between spouses, partners and family members; for example, a father and a son) But, in any case, when one focuses on the typical case – a family or couple – and crosses the banking requirements with the latest characterization of “social pyramid” developed by the consulting firm Moiguer, it remains Of course, the great social universe that does not access this opportunity.
The consulting firm has just published the latest version of that photo that, based on monthly income, paints Argentine society as a pyramid. In it, more than the lower half, 56% of the households, qualify as “lower class,” since they cannot exceed the floor of $705,535 net per month that, according to this indicator, requires entering the middle class (lower sector). ).
In the pyramid, the middle class is equivalent to 36% of households and is subdivided into two niches by income level: the “upper middle class” includes families that earn at least $1,408,347 net per month (15%) , and the “lower middle class” those where they enter figure below that floor and not less than the $705 thousand already cited as the “ceiling” of the lower class.
At the top is the 5% of the population classified as “upper class”, with a monthly income of at least $2,927,206 net per household.
This segment, added to the upper middle class, constitutes 20% of Argentine society that, by income level, is a potential beneficiary of a UVA mortgage.
UVA credits: how much is needed to buy a house
It is obvious that the exercise does not exhaust the variety of cases that exist in reality, but it does give an idea of the real scope of this financing in the context of strong loss of purchasing power on the part of families.
What’s more: if the amount of the loan in question rises above US$50,000, to access a larger home, the monthly income floor begins to easily exceed $2 million per month.
Lucas Péndola, new president of the Córdoba Real Estate Professional Association (CPI), provides some reference values for properties in the city of Córdoba.
“To access a house of between 80 and 90 square meters, in a traditional neighborhood without security or enclosure of any kind; In the style of Pueyrredón, Parque Capital or Alberdi, at least US$80 thousand to US$85 thousand are needed. The same price is for a one-bedroom apartment in Nueva Córdoba. Duplexes, the most in-demand format, rise to around US$100,000,” she compares.
Let’s go to the banks’ offer. For example, Bancor, the only one with coverage of up to 100% of the home, and which lends up to 100 thousand UVA, today would grant US$ 81 thousand (UVA of $ 1,080 multiplied by MEP dollar).
If the parameter of $66,150 fee per $10 million lent is taken, provided by the bank at the time of launch, obtaining that figure would imply crediting income of about $2.6 million per month and paying a fee of $660 thousand.
From the entity, they provide data on what is happening in practice: “There is enormous interest. We have received 53,491 inquiries through all channels and networks; “they are being processed,” they indicated.
Based on the orders and the immediate previous experience of UVA lines, they reveal that the average amount granted is $65 million (it grows as UVA increases its value), and that the total income required to obtain that amount is $ 1,700,000.
From Banco Ciudad, an entity that has 500 mortgage applications in process in Córdoba and more than 400 folders in the “final stretch” of the process at the country level, they highlight the case of the only UVA loan granted so far.
They granted it to an accountant, employed in a company, who requested $100 million to acquire her first home in Villa Devoto, an old one to be renovated, for $170 million (she had the rest). She pays a monthly payment of $680,000 over 20 years to the bank.
“The average requested is US$65 thousand. To obtain US$ 70 thousand, you have to think about a monthly fee of $540 thousand and a total income of $2.1 million per month,” the bank states.
In general, the situation is similar among banks: many inquiries, applications in process, the expectation of starting to grant loans in the coming weeks.
“The lines are excellent news; although the movement in the market has not yet started in the way we considered. It has not had an impact yet, although we have good expectations,” summarized Péndola.
Uva Credits: Bancor has already delivered the first financing
Bancor reported that it has already delivered the first mortgage loans, announced in May. The entity has already received more than 2,500 new properties to certify on Appto, the bank’s platform that certifies properties suitable for operation and where you can view their characteristics and choose properties by neighborhoods and localities throughout the province of Córdoba.
