So that housing continues to be one of the strategic drivers of the national economy, through an official announcement, Bancolombia decided that, Starting July 20, 2024, you will reduce your rates when financing the purchase of a new roof.
“With this decision, The housing credit and housing leasing rate in projects financed by the entity will be 10% annual cash”, detailed the banking entity.
With this play, Bancolombia would unleash a mortgage rate war againhousing loans and housing leasing.
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The company also clarified that New housing loans in projects not financed by the bankacquisition and remodeling of used housing, construction of individual housing and purchase of housing portfolio It will be 11% effective annually.
“This is a rate reduction that has not been possible for two decades,” the company said.
It is expected that these new measures will benefit at least 21,000 Colombian families, delivering disbursements of up to $2.6 billion at the end of the year.
“We trust in the power to reactivate the economy with the help of a key sector such as real estate and construction. We have proposed that housing be a possibility for everyone and, in that sense, we continue making efforts to adjust our rates, managing to directly impact 21,000 families in their dream of having their own home. By disbursing up to $2.6 billion at the end of the year, we reconfirm our commitment to Colombia,” said Juan Carlos Mora, president of Bancolombia.
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It is estimated that this sector of the economy provides 6.7% of jobs in Colombia and mobilizes at least 32 subsectors that become part of its productive chain.
Other measures
VIS home buyers may also apply simultaneously for the “Mi Casa Ya” program subsidy. and to the new rates, therefore, if the requirements to access the subsidy are met, said benefit will be deducted from the applied rate.
But not only residents in Colombia will be able to receive the benefits of this decision. It will also apply to Colombians abroad who live in one of the 20 countries served by Bancolombia.such as the United States, Canada, Spain, the United Kingdom and Australia, among others.
“We have expanded the spectrum of people who will be able to benefit and we have calculated new rates that benefit, among others, buyers in projects not financed by the bank, those interested in used housing, those who want to remodel, those who want to improve their financing conditions through portfolio purchases and to a segment that is key to continuing the path of strengthening the economy: Colombians abroad. Everyone will feel the positive impact of this initiative in which we take a step forward for the country,” explained Mauricio Rosillo, Vice President of Business at Bancolombia.
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Bancolombia’s new financing rates for easier access to owning a home will be in effect, initially, between July 20 and December 31, 2024 or until the quota is exhausted available for disbursements.
The mortgage credit panorama
Note that A mortgage loan is a loan that is granted, generally, for the purchase of a property. Analysts recommend that factors such as the interest burden, which is the cost of the loan, should be evaluated to determine the most suitable mortgage loan.
That is to say, The higher the interest (rate), the more you will pay for the loan. You also have to review the deadlinessince this is directly related to the total interest burden and the amortization times of the property, which are normally between 10 and 15 years.
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It should also be noted that this year began, according to data from the Superintendency of Finance, with a variety of rates among financial institutions.
For example, the entities with the lowest interest rates For the purchase of social interest housing, VIS, they are the National Savings Fund with 10.0%, followed by Banco Davivienda with 14.1% and Scotiabank Colpatria with 14.4%.
For this same purpose, the entities with the highest rates They are Credifamilia with 21.5%, Mibanco SA with 20.5% and Confiar with 19.4%.
While the highest rates for non-VIS housing purchases are offered by Cotrafa with 21.0%, Banco Caja Social with 18.4% and Scotiabank Colpatria with 17.9%, the lowest rates are again offered by the National Savings Fund with 10.8%, Bancoomeva with 15.4% and AV Villas with 16.5%.
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In addition, the mortgage credit panoramaaccording to the ‘Credit Situation Report in Colombia’, carried out by the Bank of the Republic in the first quarter of 2024, presents strong demandsplacing the indicator at levels of greater restrictions for all types of credit.
For that particular quarter, Banks, in terms of housing loans, stood out for leaning towards a more restrictive stance in the assignmentsunlike the other portfolios, which showed slight improvements.
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