Bancolombia announced that as of July 20, 2024, they will significantly reduce the rates at which they have been granting their mortgage loans.With this decision, the rate of housing credit and housing leasing in projects financed by the entity will be 10% EA
In addition, New housing loans in projects not financed by the bank, loans for the acquisition and remodeling of used housing, construction of individual housing and purchase of housing portfolio will be 11% EA, in a rate reduction that had not been possible for two decades. “We trust in the power to reactivate the economy with the help of a key sector such as Real Estate and Construction.
We have set out to make housing a possibility for everyone and, in that sense, we continue to make efforts to adjust our rates, “We have managed to directly impact 21,000 families in their dream of owning their own home. By disbursing up to $2.6 billion by the end of the year, we have reconfirmed our commitment to Colombia,” said Juan Carlos Mora, President of Bancolombia.
With this, The bank is positioned as the entity with the lowest interest rate for this credit segment, since according to the most updated figures from the SuperfinancieraOnly the National Savings Fund, which for the acquisition of VIS housing, is at 10.72% EA, would come close to this rate.
Other entities that manage lower rates for purchasing a VIS home are Confiar (12.42% EA); Davivienda Bank (12.81% EA); La Hipotecaria (12.9% EA); and Banco de Bogotá (12.92% EA). For its part, those that manage the lowest rates for purchasing a Non-VIS home are the National Savings Fund with 12.46% EA., AV Villas with 13.34% EA and Banco de Bogotá with 13.71% EA
This reflects Bancolombia’s move puts the bank between two and three percentage points below the lowest rates that the market had until now.
At LR we consulted with some banks that offer loans in the sector, however, there are still no concrete decisions regarding reducing their rates.
“Yes, we are considering it. With the reduction in rates carried out by the Bank of the Republic, it will surely result in a reduction in our cost of funds.and we will be able to pass this benefit on to our clients,” explained Juan Pablo Cruz, president of Banco Unió.n.
Meanwhile, other banks such as Banco de Bogotá said they would not reduce rates.
Mortgage credit balance.
These moves come at a time when the portfolio of these loans has had slight improvements, since according to the latest report of figures from the financial system (April), The housing portfolio increased 1.7% in real termscompared to the data recorded in 2023, with April being the fourth consecutive month with positive growth after 11 months with negative records.
According to the Superintendency of Finance, This behavior is consistent with the correction of the effect of inflation, given that in nominal terms the housing modality grows 9% annually.
According to the most updated figures from Coordenada Urbana, the information system of the Colombian Chamber of Construction, CamacolThe housing sector has not recovered so far this year, as home sales fell 26.9% annually in May. In total, 133,725 homes were sold during the last 12 months, this is 49,124 fewer homes than those sold in May of last year. So far this year, that is, between January and May, home sales registered an accumulated contraction of 14% compared to the same period in 2023.
