Learn how you can take advantage of the interest rate war on home loans

Learn how you can take advantage of the interest rate war on home loans
Learn how you can take advantage of the interest rate war on home loans

The rate war on home loans already has two bidders, and the market expects more in the coming daysA situation that raises the question of how to best take advantage of these drops in interest rates.

And Davivienda announced that as of July 16, it will reduce its rates for home acquisition, placing them at 10% effective annual, EAin housing leasing for projects financed by the entity, and 11% EA for the rest of new housing; while, days before, BAncolombia reported that, starting next July 20, it will reduce the interest on housing loans and housing leasing in projects financed by the entity to 10% EA

Within the framework of these measures, some of the ways that experts consider to be able to take advantage of the reductions in these credits are:renegotiate debts, consider purchasing a portfolio, improve monthly cash flow, and even analyze market offers to choose the one that best suits you if you are looking for a new home.

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People who have gone into debt in the last 18 months with fairly high interest rates could start renegotiating their credits, Not only with the same financial institution, but with others that might want to buy that portfolio.“, explained Wilson Tovar, manager of economic research at Acciones y Valores.

For his part, David Cubides, director of economic research at Alianza Valores, said that “Any reduction in the interest rate means, for the consumer or the borrower, an improvement in their monthly cash flow.so this competition is positive.”

Now, companies can also take advantage of these moves, since given the lower rates, the construction sector can experience improvements in line with the economic recovery.This will allow the construction sector to be reactivated, the sale of that large amount of inventory they have built in housing.“Tovar added.

The rate war is intended to revive the economy, which is why analysts believe that more banks will join the measure.. “Things like these imply that economic activity can be reactivated a little more, which also ends up being an important benefit of this management of the banks, because they must anticipate in some way. What We have to look ahead, interest rates are still going to go down further and obviously this war is just beginning.“said Wilson Tóvar, Research Manager at Stocks and Securities.

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