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🇦🇷 Argentina /Economy & Trade

Banco Hipotecario Cuts Mortgage Rate After First FGS Funding Auction

From La Nación · () Spanish

Translated from Spanish and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources New plan
  • Banco Hipotecario will cut the rate on all UVA mortgage lines for first homes from 9.5% to 7.5%, with the change taking effect immediately.
  • The new rate will apply to loans for buying, building, expanding, completing or renovating a first home, with terms of up to 15 years and financing of up to 80% of the property value.
  • The change will also cover approved applications still awaiting disbursement, after 18 financial institutions submitted 42 bids for 258.64 billion pesos in the first FGS auction and 13 banks won allocations.

Banco Hipotecario will lower the interest rate on its UVA mortgage loans for first homes from 9.5% to 7.5%, shortly after the results of the first auction of funds from the Sustainability Guarantee Fund, or FGS.

The new rate will apply to loans for purchasing, building, expanding, completing or renovating a first home. The loans can run for up to 180 months, or 15 years, and finance up to 80% of the property’s value. Applications can be completed entirely online. The rate for second homes will remain 9.5%.

The change takes effect immediately, and the bank expects the new terms to be fully operational for applications during the following week. It will not be limited to new customers. Borrowers who had already started the process under the previous terms but had not yet received disbursement will also qualify for the 7.5% rate.

We are very enthusiastic. Expectations are very high because of the state’s support as public policy, and together with improving macroeconomic conditions, we hope that a genuine and sustainable secondary mortgage market will take hold in the short term.

· Banco Hipotecario sourcesThe bank described its expectations after the FGS auction and the mortgage-rate cut.

“We are very enthusiastic. Expectations are very high because of the state’s support as public policy, and together with improving macroeconomic conditions, we hope that a genuine and sustainable secondary mortgage market will take hold in the short term,” bank sources told La Nación.

The bank described that market as essential to expanding and sustaining the mortgage system. “That is the foundation for mortgage credit for all Argentines,” the sources added.

The government’s first FGS auction took place on Monday as part of a program to provide banks with long-term funding. Eighteen financial institutions submitted 42 offers totaling 258.64 billion pesos, above the 200 billion peso amount available. Thirteen banks ultimately received allocations. More than 82% of the funds went to five-year placements, including 164.4293 billion pesos at an average rate of 4.94%. The remaining 35.5707 billion pesos went to one-year placements at a weighted average rate of 2.67%.

That is the foundation for mortgage credit for all Argentines.

· Banco Hipotecario sourcesThe bank explained why it considers a secondary mortgage market important for future growth.
About this summary

Originally published by La Nación in Spanish. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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