5 keys to keep in mind before getting into debt

5 keys to keep in mind before getting into debt
5 keys to keep in mind before getting into debt

A little bit less than three months after launch Of the new UVA mortgage loans, inquiries continue to be made to fulfill the dream of owning a home. There are already 15 banks that grant the possibility of financing 20 and 30 years which is accessible to employees and self-employed workers, whether they are registered taxpayers or micro-entrepreneurs. Retirees and pensioners who receive their salaries from that entity are also included in Banco Nación.

However, considering that this type of mortgage loans follows the index of the Purchasing Power Unit (UVA), an indicator that reflects inflationthe loan installments are adjusted monthly depending on the evolution of prices. In this sense, at times, the credit installment may be cheaper and at other times, much more expensive than the initial payment.

For this reason, in addition to meeting certain requirements and gathering the necessary documentation, it is essential be well informed and evaluate certain aspects before making the decision and to go into debt for such a long period.

UVA mortgage loan: what are the requirements to apply and what documentation is needed?

To obtain a mortgage loan, the following requirements must be met:

  • To be employee in dependent relationshipself-employed or, in some cases, retired or pensioner (National Bank)
  • Not be over 65 years old at the time of expiration.
The new UVA mortgage loans have renewed the hopes of many people who dream of owning their own home. Photo Shutterstock.

These are the documents that must be submitted:

  • DAYS
  • Debt-free or document proving that you do not have a negative financial history.
  • Proof of monthly income.
  • Credit card payments.
  • Records of the property you wish to purchase.
  • In the case of the self-employed workersthey require a minimum of one year’s seniority and the last 3 payments up to date.
  • Los employees They must present the last 3 pay stubs and a work certificate.

UVA mortgage loans: 5 key points to keep in mind before getting into debt

“It is important to highlight that Mortgage credit in a country is very necessary. Although in Argentina we have normalized that in recent decades it has been almost an impossible mission to access it -during the last 5 years there was no offer-, in all developed and developing countries it is an essential tool for the economic growth of society,” he said. Ariel ChampanierCEO of RE/MAX Premium, the real estate services agency that already recorded 50% more queries to buy properties since the credits were launched.

These credits can be a tool to fulfill the desire of a portion of Argentines to be ownerswhich may accelerate the increase in property values, but as can be seen from these issues, The key is to take stock“I am convinced that as more banks grant loans, rates will go down, so in the long term the benefits will be greater,” Champanier said.

The specialist then shared Some keys to keep in mind before applying for a mortgage loan:

1. Think about the long-term benefit

If you have doubts about the payment, the rate, or the interest, you have to take into account that normally a mortgage loan in Argentina is for 20 years, and that -probably- over that period You will experience fluctuating situationswhere the credit It’s going to be very cheap or stages where It’s going to be a little more expensivebut in the long term the benefit is greater.

In general, those who take out a debt in Argentina perceive that over time it liquefies due to the various devaluations.

2. Measure in dollars, not pesos

If you are analyzing whether the credit is “good” or “bad,” the key is to dollarize it, instead of measuring it in. For example, with the previous UVA credits, many people only saw that they had started paying a fee of “x” pesos and then ended up paying much more. But the key is to think: How many dollars were there at that time and how many are there today? In retrospect, everyone ended up winning.

3. Secure the advance payment

To access the credit you will need an advance, if you do not have this requirement you will not be able to obtain it. In general terms, the new loans cover between 75% and 80% of the value of the homes.

You have to understand that the fee you are going to pay will have to do with your income. Take stock of how much money you earnand what percentage of that amount you can allocate to credit. Although you have to make an effort to reach the minimum amount necessary, it is undoubtedly worth adjusting to be able to reach your ceiling.

Mortgage loans can accelerate the rise in property values. Photo: Rafael Mario Quinteros

4. Read the fine print

The first thing you will have to do to take out a mortgage loan is go to a bank to get qualified and that way you will know if you are “pre-approved” to be granted the loan.

Once you are approved, it is important that you know the fine print: the expenses that they will charge you In addition to the money that will be required to do the deed and mortgageamong others. Also, what the possible cancellation is like, and to clear up any doubts – however small they may be – before signing the contract.

5. Credit term according to age

Repayment periods are around 20 years, but some entities offer up to 30 years, so it is important to consult the different proposals for these loans that can also be used to buy a second home.

To know at what age it is best to take it out, you have to take into account that the longer the termthe solicitor must be youngerso that the loan is cancelled while it is being active in the workplace and before retirement age.

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