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How divisible mortgages for buying property really work - La Nacion Propiedades
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Cómo funcionan realmente las hipotecas divisibles para comprar propiedades
Mientras que los créditos hipotecarios financian principalmente inmuebles usados, las hipotecas divisibles lo hacen con las propiedades en construcción
www.lanacion.com.ar
November 01, 2025
While mortgage loans primarily finance used properties, divisible mortgages do so for properties under construction.
Divisible mortgages finance properties under constructionGonzalo Colini
In June 2025, the Government regulated the implementation of divisible mortgages : a new legal figure in Argentina that allows the purchase of a property off-plan with long-term financing , even before the property is built or subdivided.
Divisible mortgages allow a developer to establish a general mortgage on a plot of land or a project under construction, with each buyer then assuming their share of the loan as construction progresses . Is this the same as a mortgage? The answer is no, although once construction is complete, the buyers of each unit become borrowers on the loan.
It's important to clarify that mortgage loans can only be granted for properties with a deed, which is why the main market for these loans is for used properties. New , pre-construction properties, lacking a deed, cannot be mortgaged . It's worth noting that new apartments, from the time they are completed until they are registered, undergo a process that takes between six months and a year in the City of Buenos Aires (CABA), and between a year and a half and two years in the Province of Buenos Aires.
But, with the implementation of divisible mortgages, " anyone can access long-term credit to finance the purchase of a real estate development under construction (commonly known as a 'well') or a lot in a neighborhood , even before the land is subdivided."
When construction is completed and the units are divided, the mortgage is also divided and passed on to the buyers.
How do they work?
A developer may establish a general mortgage on the land or the entire project, while the buyers of the project units will pay for their apartment during construction and then, when construction is completed and the units are divided, that mortgage is also divided , assigning the corresponding balance to each buyer (based on the property they acquired and the balance they have left to pay), and they become the individual debtor to the bank.Furthermore, it benefits both buyers and developers, who will have access to financing to purchase a property (for the former) and advance their real estate projects (for the latter).
This announcement was celebrated not only by end consumers as an innovative step to bring Argentinians closer to the dream of homeownership from the early stages of real estate development, something that until now was off the radar of the financial system; but also by developers as an incentive to encourage the purchase of off-plan projects .
However, despite the implementation of the regulations in the middle of this year, banks had anticipated that they would not offer loans under this modality. This is because the institutions do not have sufficient funding to lend such a large amount of money long-term, a situation that also slowed the granting of UVA mortgage loans to end consumers.
Furthermore, one bank asserted that the regulations “ can be implemented once a secondary mortgage market is established . That is what the financial system needs to generate a higher volume of loans.”
A first approach
Despite this scenario, one bank announced it will offer this financing option for business development. ICBC announced an agreement with IRSA , the company that owns the country's main shopping malls, to offer financing from the start of construction or at any stage prior to closing .The scheme will allow buyers to finance up to 80% of the property value , with terms of up to 20 years and fixed installments in UVAs (Adjustable Units of Value) from the signing of the purchase agreement . Furthermore, those purchasing a primary and permanent residence can combine family income to qualify for the loan, with interest rates of 14% for bank customers and 13% for those who have their salary deposited with the bank .
Initially, the line will be available for the first units of the Human Abasto project, one of the developments of the real estate group headed by Eduardo Elsztain. The project consists of two 28-story towers totaling 21,500 m² , with studio apts-, one-, and two-bedroom residential units, located steps from Corrientes Avenue, on the block bounded by Lavalle, Agüero, Guardia Vieja, and Gallo streets.
Although it will still be some time before divisible mortgages are implemented in the general market , this first step by a bank with a development plan shows positive signs for the medium term . It remains to be seen not only whether other institutions will follow suit, but also whether they will have sufficient funding to allow the market to readjust .
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