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Divisible mortgages and already registrable purchase and sale agreements: what's missing for implementation? - Ambito Financiero
Source:
www.ambito.com
August 06, 2025
Santa Fe is a pioneer with the divisible mortgage rule. The path opens for financing underdeveloped units: Will banks join in?
Divisible mortgages not only address access to housing, but also seek to revitalize the construction sector.
A regulatory change brewing in the province of Santa Fe could usher in a new era for mortgage lending in Argentina . With Joint Technical Registry Provision Number 5 of 2025 , the province becomes the first in the country to regulate the registration of divisible mortgages , a technical but fundamental step for banks and the stock market to finance the purchase of units off the books or untitled lots. However, the big question in the market is whether, with the regulations in place, banks will be willing to lend money under this new scheme .
This milestone is the result of the arduous work promoted by the Housing Forum , which brings together business leaders and professional associations from southern Santa Fe. Faced with historical fragmentation and bureaucracy, this forum found a favorable response from the provincial government. The Minister of Development, Gustavo Puccini , and the Secretary of Commerce, Gustavo Rezzoaglio , were responsible for coordinating the process. In the final stage, the role of Matías Figueroa Escauriza (Secretary of Provincial Registry Management) and Fernando Sirk (Director of the Property Registry) was key in achieving the standard.
The ability to register a deed of sale and place a mortgage on a "future property" (i.e., a property that does not yet exist or is under construction) is a change that goes beyond a simple legal adjustment. It represents a break with long-standing customs and practices in property registries across the country.
Historically, bureaucracy and a lack of clear regulations prevented ( the national government has already regulated ) buyers from obtaining a loan for something that wasn't yet a finished and deeded property. This barrier hindered construction financing, forcing developers to turn to their own capital or private investors, making the process more expensive and limiting access to housing.
A divisible mortgage, as its name suggests, is a lien placed on land or a property under construction. As the functional units are sold, the mortgage is "divided" and transferred proportionally to the new owner. This means that a buyer of a subdivision unit can access a mortgage loan to finance their portion of the project, even before the apartment is completed. The bank, for its part, has the guarantee that its loan is secured by the mortgage on that portion of the property.
Santa Fe is a pioneer in regulating divisible mortgages. This technical step paves the way for financing the purchase of units in the pipeline, but challenges remain nationwide.
This mechanism is crucial because it allows a buyer with a registered bill of sale (bolido de compraventa) to obtain financing backed by the future unit. Until now, banks were reluctant to grant this type of credit, since the bill of sale (bolido de compraventa), not being a property title, offered no solid guarantee. Santa Fe's new regulation, by adapting the registry system to record bills of sale (bolido de compraventa), lays the groundwork for overcoming this problem.
Federico González Rouco , an economist specializing in the real estate market and from Empiria Consultores, said that "with the support of stock markets, these entities could offer innovative credit products; the way forward is securitization (which involves the creation of a financial vehicle (a trust) to which mortgage loans are transferred) of portfolios, specifically designed for this segment of the housing construction market."
Institutions such as Banco Ciudad have shown interest in exploring this type of financing, as they see a growth opportunity in the use of prepaid units. Banco Nación also has a line of credit leverage, but this option has not yet made significant headway.
There is caution and doubt about whether banks will be inclined to allocate funds to divisible mortgages; the upcoming legislative elections also influence these decisions today.
The City's proposal finances up to 75% of the property's value. The term is 20 years and the maximum amount is $300 million. The buyer pays only interest during the construction phase. Once construction is complete, a traditional mortgage loan is activated. The loan model facilitates the purchase of homes in the early stages. This tool boosts investment in construction projects and reduces risks for developers.
The market response to this initiative is cautious but optimistic. This possibility is geared toward small, first-home properties. The bank is analyzing more than 30 projects in various neighborhoods of the city, such as La Boca, Barracas, Balvanera, Saavedra, Núñez, Villa Devoto, Villa Urquiza, and Parque Patricios , among others.
Carlos Spina , president of the Association of Housing Entrepreneurs (AEV), noted that almost all loans are directed toward used or finished homes. Spina argued that banks adopt this strategy out of convenience and risk aversion, since these loans can be mortgaged immediately. According to the businessman, the market's true need lies in financing new construction, an option that is almost nonexistent today. He also warned that banks lack a secondary market for mortgage placement, a factor that quickly exhausts loan capacity and creates a sluggish system.
In his analysis, Spina argued that a change of mentality in the financial system is essential. He explained that financing new construction does not imply greater risk, but quite the opposite. To illustrate his point, he shared the example of Uruguay, where a private company sold 300 apartments in Colonia. Of that total, 170 were financed with down payment. "In the neighboring country, banks provide loans directly to the buyer, who puts up a 30% down payment as collateral, which reduces the possibility of default," he said.
He also noted that in Argentina, a Central Bank circular, issued in 2016, authorizes banks to consider new construction loans as low-risk mortgages. However, he lamented that financial institutions' risk departments are reluctant to implement these mechanisms en masse. Instead of taking advantage of this tool, they opt for a gradual and limited approach that fails to achieve a significant impact on the market.
Spina stated that "desire" on the part of the financial sector and coordination with the private sector are needed to launch new projects. He emphasized that we shouldn't wait for large, centralized developments. The key, in his view, is to encourage a multitude of smaller-scale initiatives that, over time, generate thousands of mortgages and boost construction activity throughout the country.
www.buysellba.com
Source:
Hipotecas divisibles y boletos de compra venta ya registrables: qué falta para la puesta en práctica
Santa Fe es pionera con la norma de hipotecas divisibles. El camino abre el financiamiento de unidades en pozo: ¿los bancos se sumarán?
www.ambito.com
August 06, 2025
Santa Fe is a pioneer with the divisible mortgage rule. The path opens for financing underdeveloped units: Will banks join in?
Divisible mortgages not only address access to housing, but also seek to revitalize the construction sector.
A regulatory change brewing in the province of Santa Fe could usher in a new era for mortgage lending in Argentina . With Joint Technical Registry Provision Number 5 of 2025 , the province becomes the first in the country to regulate the registration of divisible mortgages , a technical but fundamental step for banks and the stock market to finance the purchase of units off the books or untitled lots. However, the big question in the market is whether, with the regulations in place, banks will be willing to lend money under this new scheme .
This milestone is the result of the arduous work promoted by the Housing Forum , which brings together business leaders and professional associations from southern Santa Fe. Faced with historical fragmentation and bureaucracy, this forum found a favorable response from the provincial government. The Minister of Development, Gustavo Puccini , and the Secretary of Commerce, Gustavo Rezzoaglio , were responsible for coordinating the process. In the final stage, the role of Matías Figueroa Escauriza (Secretary of Provincial Registry Management) and Fernando Sirk (Director of the Property Registry) was key in achieving the standard.
A problem of uses, customs and bureaucracy
The ability to register a deed of sale and place a mortgage on a "future property" (i.e., a property that does not yet exist or is under construction) is a change that goes beyond a simple legal adjustment. It represents a break with long-standing customs and practices in property registries across the country.
Historically, bureaucracy and a lack of clear regulations prevented ( the national government has already regulated ) buyers from obtaining a loan for something that wasn't yet a finished and deeded property. This barrier hindered construction financing, forcing developers to turn to their own capital or private investors, making the process more expensive and limiting access to housing.
How does this change work and what does it entail?
A divisible mortgage, as its name suggests, is a lien placed on land or a property under construction. As the functional units are sold, the mortgage is "divided" and transferred proportionally to the new owner. This means that a buyer of a subdivision unit can access a mortgage loan to finance their portion of the project, even before the apartment is completed. The bank, for its part, has the guarantee that its loan is secured by the mortgage on that portion of the property.
Santa Fe is a pioneer in regulating divisible mortgages. This technical step paves the way for financing the purchase of units in the pipeline, but challenges remain nationwide.
This mechanism is crucial because it allows a buyer with a registered bill of sale (bolido de compraventa) to obtain financing backed by the future unit. Until now, banks were reluctant to grant this type of credit, since the bill of sale (bolido de compraventa), not being a property title, offered no solid guarantee. Santa Fe's new regulation, by adapting the registry system to record bills of sale (bolido de compraventa), lays the groundwork for overcoming this problem.
The role of banks and securitization
Federico González Rouco , an economist specializing in the real estate market and from Empiria Consultores, said that "with the support of stock markets, these entities could offer innovative credit products; the way forward is securitization (which involves the creation of a financial vehicle (a trust) to which mortgage loans are transferred) of portfolios, specifically designed for this segment of the housing construction market."
Institutions such as Banco Ciudad have shown interest in exploring this type of financing, as they see a growth opportunity in the use of prepaid units. Banco Nación also has a line of credit leverage, but this option has not yet made significant headway.
There is caution and doubt about whether banks will be inclined to allocate funds to divisible mortgages; the upcoming legislative elections also influence these decisions today.
The City's proposal finances up to 75% of the property's value. The term is 20 years and the maximum amount is $300 million. The buyer pays only interest during the construction phase. Once construction is complete, a traditional mortgage loan is activated. The loan model facilitates the purchase of homes in the early stages. This tool boosts investment in construction projects and reduces risks for developers.
The market response to this initiative is cautious but optimistic. This possibility is geared toward small, first-home properties. The bank is analyzing more than 30 projects in various neighborhoods of the city, such as La Boca, Barracas, Balvanera, Saavedra, Núñez, Villa Devoto, Villa Urquiza, and Parque Patricios , among others.
Carlos Spina , president of the Association of Housing Entrepreneurs (AEV), noted that almost all loans are directed toward used or finished homes. Spina argued that banks adopt this strategy out of convenience and risk aversion, since these loans can be mortgaged immediately. According to the businessman, the market's true need lies in financing new construction, an option that is almost nonexistent today. He also warned that banks lack a secondary market for mortgage placement, a factor that quickly exhausts loan capacity and creates a sluggish system.
In his analysis, Spina argued that a change of mentality in the financial system is essential. He explained that financing new construction does not imply greater risk, but quite the opposite. To illustrate his point, he shared the example of Uruguay, where a private company sold 300 apartments in Colonia. Of that total, 170 were financed with down payment. "In the neighboring country, banks provide loans directly to the buyer, who puts up a 30% down payment as collateral, which reduces the possibility of default," he said.
He also noted that in Argentina, a Central Bank circular, issued in 2016, authorizes banks to consider new construction loans as low-risk mortgages. However, he lamented that financial institutions' risk departments are reluctant to implement these mechanisms en masse. Instead of taking advantage of this tool, they opt for a gradual and limited approach that fails to achieve a significant impact on the market.
Spina stated that "desire" on the part of the financial sector and coordination with the private sector are needed to launch new projects. He emphasized that we shouldn't wait for large, centralized developments. The key, in his view, is to encourage a multitude of smaller-scale initiatives that, over time, generate thousands of mortgages and boost construction activity throughout the country.
www.buysellba.com
