In the sleepy heat of competition, Mortgage credit is back in everyday conversation. In recent days, several groups have revised UVA’s lines downward, offering longer terms and reopening access to households with formal income.
Although this movement is not uniform, it does indicate a trend. At slightly more benign interest rates, the question is no longer whether credit “exists”; How to compare options, understand the details and make a decision When it’s time to enter, or when it’s better to wait.
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“Since the currency crisis broke out, interest rates have risen through the roof. Governments have sought to ‘tighten monetary policy.’ On the one hand, banks have had to lock up more money with the central bank; on the other hand, The reference rate was very high. As a result, bank lending was severely restricted and everything became expensive. After the election, the market calmed down. There were also measures to increase reserves, such as exchanges with the United States. Country risk has decreased. Stocks and bonds rose. An atmosphere of optimism may emerge and reference interest rates may be eased.. Since last week, they have started to decline, which is affecting several activities, including mortgages. Banks are updating their terms and new opportunities are emerging,” Gisela Veritier said in a conversation with After Office (Punto a Punto Radio, 90.7).
This change has led economists to warn: National banks have more competitive interest rates than private banks” and “With financial normalization, more credit will start to be given.”
What was changed to the system so that the credits would appear again?
Standardization does more than just mandate prices. It also returns banks to their specific functions. Receive deposits and turn them into loans. Veritier sums this up with an easy-to-understand image. “Not only economic activity but also banking activity will be normalized. Deposits will be turned into loans again.”
In this process, the audience is usually the first mover, even if the logic is not strictly commercial. “for example, Banco Nacion offers 6% per year, finances up to 75% of the appraised value, and allows terms of up to 30 years.. The fee-to-income ratio is 25% and you can also add in the income of your spouse or cohabitant,” he explains. He says of this type of condition: Stifling competition and forcing private companies to overhaul their boards.
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Questions that will influence your decision will appear quickly. Is it better to enter now or wait for another loss? Veritier recognizes that if normalization is maintained, the development of interest rates will be on a downward trend and we are already seeing interest rates close to average rents. But he urges us not to lose sight of the nature of the product: “You need to understand something important: UVA loans are not purely peso-denominated loans, but are made in homogeneous denominations. If inflation does not stop, fees will continue to be adjusted by UVA. Interest rates. Even if it’s 6%, if you have 2% monthly inflation, that 2% is added on. Also, if there is a devaluation that gets passed on to prices, as happened under Macri, that hits UVA and complicates who had that credit. He emphasizes that the “photographs” that appear clearer today may be different from the “movies” 30 years from now.
Who should you reach and what should you focus on without getting confused by technicalities?
At lower rates, access again relies on two hinges. It’s about steady income and the ability to read each offer. The first point is to measure the weight. Relationship between fees and income There is also the possibility of adding to your salary within the household. The second key is Percentage financed (LTV), total cost (CFT, insurance, expenses) Possible quota capping mechanisms If your salary differs from UVA.
Veritier also suggests looking at the “links” each bank is looking for. “Banks want to offer their customers product packages like payroll collection and cards that help them access the lowest interest rates. That’s up to each bank.” And then there’s the novelty of adding competition in a non-traditional way. ”A notable case is Bulbankthe first digital bank approved by the BCRA: publish interest rates of 8%, lend up to 70% of value, processes are 100% digital and have great operational agility. It is a “modern” option for mortgagees. ”
The advice he leaves between the lines is wise. The quota that ends today is not enough;If inflation takes longer to come down, if your salary doesn’t rise above UVA, or if “hidden” costs appear in your credit structure, you’ll need to find out what those fees will be.
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Even in a more friendly environment; This decision is not purely economic. weigh 30 years of risk avoidance In a country that sometimes shakes the table. Veritier says this frankly. “I’m not the kind of person who deserves that kind of recognition. When I think about what’s going to happen 30 years from now, I’m in disbelief. It’s not because of today’s photos, it’s not because I look good. You can’t predict tomorrow’s photos. We don’t have all the ingredients to think this long term. “We are not Europe or America.”
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