Does Argentina have any Home Equity Lines of credits?

[Cali Baby]

I just put a down payment on a new construction that will be done in 12 months. I had to pay all cash. They told me that is the norm and almost everyone owns their property free and clear with no mortgage. Amazing to me! My lawyer told me mortgages are getting popular here again. But since so many people own and have tons of equity in their properties, is it possible to get a home equity line of credit like in the USA?

Or my grandmother did a reverse mortgage where she got a lump sum of cash and each month she gets cash and she has to give her house when she dies. I would think that would be very popular here! Did Argentina ever do that before? Do you think they will? I would love to tap into the equity in my new place and get a loan to buy another pozo. I could finance it out 36 months while they build it.

 

[Betsy Ross]

I don't know of any. I think maybe a long time ago they did but I haven't heard of this and glad they don't. Probably just opportunities for people to lose their residences. I know that they used to do it because on my title deed check I asked the Escribano and he told me that if there was a mortgage or loan against it, it would be recorded on the central registry.

 

[Wally]

I think they used to offer these. I saw this online. It would be very popular here as people would be cashing out some equity. But I agree with Betsy they have to be careful. Good way to lose your place if you don't pay it back.

https://www.colescba.org.ar/descarga/43JNB/T4/T4_BRAGA%20FUSTA_La_hipoteca_inversa.pdf

https://www4.hcdn.gob.ar/dependencias/dsecretaria/Periodo2022/PDF2022/TP2022/1158-D-2022.pdf

 

[I Love Mate]

I just put a down payment on a new construction that will be done in 12 months. I had to pay all cash. They told me that is the norm and almost everyone owns their property free and clear with no mortgage. Amazing to me! My lawyer told me mortgages are getting popular here again. But since so many people own and have tons of equity in their properties, is it possible to get a home equity line of credit like in the USA?

Or my grandmother did a reverse mortgage where she got a lump sum of cash and each month she gets cash and she has to give her house when she dies. I would think that would be very popular here! Did Argentina ever do that before? Do you think they will? I would love to tap into the equity in my new place and get a loan to buy another pozo. I could finance it out 36 months while they build it.

I don't think this is a good idea for Argentina.

 

[Melibaires]

I just put a down payment on a new construction that will be done in 12 months. I had to pay all cash. They told me that is the norm and almost everyone owns their property free and clear with no mortgage. Amazing to me! My lawyer told me mortgages are getting popular here again. But since so many people own and have tons of equity in their properties, is it possible to get a home equity line of credit like in the USA?

Or my grandmother did a reverse mortgage where she got a lump sum of cash and each month she gets cash and she has to give her house when she dies. I would think that would be very popular here! Did Argentina ever do that before? Do you think they will? I would love to tap into the equity in my new place and get a loan to buy another pozo. I could finance it out 36 months while they build it.

I have a friend here in Buenos Aires, and back around 2012, I think it was during Macri’s time as mayor, she signed up for a government program called Primera Casa BA. She actually got selected in the lottery and was approved for a mortgage through Banco Ciudad.

She always says she’s super grateful because, honestly, it was the only way she could ever have bought a home. The loan was set up for 24 years, and she’s still paying it off , she’s about halfway through now, with 12 years to go.

But here’s the thing: it was a fixed-rate mortgage, and that has worked out amazingly for her. Because of all the inflation and how the economy changed over the years, the amount she pays now is ridiculously low. To give you an idea, her monthly bank account maintenance fees are actually more than her mortgage payment.

That kind of deal just doesn’t exist anymore. Now they have these UVA loans, which are tied to inflation and other economic factors, and they’re super risky. A lot of people ended up in a bad spot with those.

For the average person in Argentina today, buying a home is almost impossible. The fixed-rate loan my friend got feels like a once-in-a-lifetime opportunity.

https://buenosaires.gob.ar/noticias/entregamos-los-primeros-250-creditos-del-programa-primera-casa-ba

 

[sophos]

For the average person in Argentina today, buying a home is almost impossible. The fixed-rate loan my friend got feels like a once-in-a-lifetime opportunity.

Very fortunate to have one of these fixed are mortgages. The home ownership rates in Argentina are very high. One of the highest in the world.