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Mortgage lending: a bank lowered the rate and sent a signal to the market after the elections - La Nacion Propiedades
Source:
www.lanacion.com.ar
October 31, 2025
Amid an increasingly restricted market, one entity reduced its rate from 10.5% to 7.5%, but it is intended for high-income clients.
By Candela Contreras
A bank decided to lower the interest rate on its mortgage line of credit, but with high requirements.
Amid a context of complete uncertainty about what will happen in the future of the real estate market , with interest rates on UVA (Purchasing Power Unit) mortgage loans at historically high levels - some above 15% - and long-term financing practically frozen, one financial institution decided to take the first step and lowered its rate .
BBVA reduced the annual nominal rate (TNA) of its preferred mortgage line from 10.5% to 7.5% . This is the first concrete reduction since banks resumed offering UVA mortgage loans , and although the scope of the measure is limited, it represents a move that could foreshadow a new phase in the market.
The 7.5% rate applies only to their preferred loan program , aimed at high-income clients : those who receive their salary through the bank and earn more than $5 million per month . Furthermore, the loan must be used to purchase a primary residence valued at more than $50 million or a secondary residence valued at more than $100 million .
Meanwhile, the standard line maintains the rate of 10.9% , and those who do not credit their salary to the entity have one of the highest rates: 17% .
“The loan amount is determined based on the client's income, allowing financing of up to 80% of the property value with a term ranging from a minimum of 5 years to a maximum of 30 years. To increase financing capacity, the applicant can combine the income of up to two direct family members,” the bank stated.
“They set this rate for a salary of $5 million, which is extremely restrictive . But it's the first bank to lower a rate in this whole new round of UVA mortgage loans. As the financial market normalizes and the Central Bank's monetary tightening is dismantled, liquidity will increase and the yield curve will ease ,” he explains.
Salinas adds that this measure should be interpreted in conjunction with the recent reduction in bank reserve requirements : “They don't make a difference on their own, but both send a message. Hopefully, they will set a direction. Interest rates remain very high, although it would be very positive to see Banco Nación relax its scoring requirements, which were a major filter last month .”
The case of Banco Nación became a separate phenomenon. For months it was seen as “the last bastion” of reasonable interest rates . But instead of raising its rates, as happened with most banks, that advantage became almost illusory due to the credit score required to access its loans: it doubled, going from 450 to 909 points .
Similarly, Federico González Rouco, an economist specializing in housing, points out that BBVA's decline "is part of the normalization" of the market after the elections.
“With less uncertainty, rates would tend to fall, and that explains this movement. I'm surprised by the speed, but it's the best thing that could happen. Rates are very high , partly due to the financial comparables of a UVA loan, which are CER bonds. In recent days, bonds have fallen sharply, which also justifies the adjustment, in addition to reflecting a bet that the market will normalize in the medium term ,” he argues.
Therefore, in practice, the measure does not eliminate the main barrier to accessing credit: the high income required to qualify . While a lower interest rate should translate into a lower monthly payment, and therefore a more accessible income threshold, in this case the requirement to earn more than $5 million per month keeps credit out of reach for most .
“The market is already anticipating increased liquidity and lower interest rates. If the Central Bank manages to rebuild reserves without allowing the peso to appreciate excessively, economic activity will be much more competitive,” he argues.
The businessman explains that in recent days, inquiries from potential buyers have increased , including from people who had postponed decisions in recent months. “ The brakes are being released . When banks restore their liquidity and the government demands fewer pesos, those funds will flow into the private sector. Mortgage lending will reappear, and that will also reactivate the used property market,” he predicts.
It's important to clarify that BBVA's rate cut doesn't change the credit landscape, but it does signal a shift in direction . It indicates that banks are beginning to anticipate a more predictable scenario with less pressure on monetary policy.
In a country where more than three million households have housing needs and where mortgage credit represents only 0.2% of the Gross Domestic Product (GDP), any news that promises to unlock access to housing generates expectation .
Now, it remains to be seen what will happen in the future: if the stabilization expectations consolidate and other entities follow the same path, the market could be reactivated .
www.buysellba.com
Source:
Crédito hipotecario: un banco bajó la tasa y da una señal al mercado luego de las elecciones
En medio de un mercado cada vez más restringido, una entidad redujo su tasa del 10,5% al 7,5%, pero está destinada a clientes de altos ingresos
www.lanacion.com.ar
October 31, 2025
Amid an increasingly restricted market, one entity reduced its rate from 10.5% to 7.5%, but it is intended for high-income clients.
By Candela Contreras
A bank decided to lower the interest rate on its mortgage line of credit, but with high requirements.
Amid a context of complete uncertainty about what will happen in the future of the real estate market , with interest rates on UVA (Purchasing Power Unit) mortgage loans at historically high levels - some above 15% - and long-term financing practically frozen, one financial institution decided to take the first step and lowered its rate .
BBVA reduced the annual nominal rate (TNA) of its preferred mortgage line from 10.5% to 7.5% . This is the first concrete reduction since banks resumed offering UVA mortgage loans , and although the scope of the measure is limited, it represents a move that could foreshadow a new phase in the market.
The 7.5% rate applies only to their preferred loan program , aimed at high-income clients : those who receive their salary through the bank and earn more than $5 million per month . Furthermore, the loan must be used to purchase a primary residence valued at more than $50 million or a secondary residence valued at more than $100 million .
Meanwhile, the standard line maintains the rate of 10.9% , and those who do not credit their salary to the entity have one of the highest rates: 17% .
“The loan amount is determined based on the client's income, allowing financing of up to 80% of the property value with a term ranging from a minimum of 5 years to a maximum of 30 years. To increase financing capacity, the applicant can combine the income of up to two direct family members,” the bank stated.
What does this mean in practice?
The reality is that the rate cut doesn't change the landscape immediately , but it does send a message . Economist Andrés Salina believes that BBVA's decision "is good news, but more for the signal it sends than for the rate level itself."“They set this rate for a salary of $5 million, which is extremely restrictive . But it's the first bank to lower a rate in this whole new round of UVA mortgage loans. As the financial market normalizes and the Central Bank's monetary tightening is dismantled, liquidity will increase and the yield curve will ease ,” he explains.
Salinas adds that this measure should be interpreted in conjunction with the recent reduction in bank reserve requirements : “They don't make a difference on their own, but both send a message. Hopefully, they will set a direction. Interest rates remain very high, although it would be very positive to see Banco Nación relax its scoring requirements, which were a major filter last month .”
The case of Banco Nación became a separate phenomenon. For months it was seen as “the last bastion” of reasonable interest rates . But instead of raising its rates, as happened with most banks, that advantage became almost illusory due to the credit score required to access its loans: it doubled, going from 450 to 909 points .
Similarly, Federico González Rouco, an economist specializing in housing, points out that BBVA's decline "is part of the normalization" of the market after the elections.
“With less uncertainty, rates would tend to fall, and that explains this movement. I'm surprised by the speed, but it's the best thing that could happen. Rates are very high , partly due to the financial comparables of a UVA loan, which are CER bonds. In recent days, bonds have fallen sharply, which also justifies the adjustment, in addition to reflecting a bet that the market will normalize in the medium term ,” he argues.
Therefore, in practice, the measure does not eliminate the main barrier to accessing credit: the high income required to qualify . While a lower interest rate should translate into a lower monthly payment, and therefore a more accessible income threshold, in this case the requirement to earn more than $5 million per month keeps credit out of reach for most .
Future expectations
But a change in the real estate sector is also noticeable. Issel Kiperszmid, CEO of Dypsa Group, points out that after last Sunday's parliamentary elections, "there is a strong positive shift in expectations."“The market is already anticipating increased liquidity and lower interest rates. If the Central Bank manages to rebuild reserves without allowing the peso to appreciate excessively, economic activity will be much more competitive,” he argues.
The businessman explains that in recent days, inquiries from potential buyers have increased , including from people who had postponed decisions in recent months. “ The brakes are being released . When banks restore their liquidity and the government demands fewer pesos, those funds will flow into the private sector. Mortgage lending will reappear, and that will also reactivate the used property market,” he predicts.
It's important to clarify that BBVA's rate cut doesn't change the credit landscape, but it does signal a shift in direction . It indicates that banks are beginning to anticipate a more predictable scenario with less pressure on monetary policy.
In a country where more than three million households have housing needs and where mortgage credit represents only 0.2% of the Gross Domestic Product (GDP), any news that promises to unlock access to housing generates expectation .
Now, it remains to be seen what will happen in the future: if the stabilization expectations consolidate and other entities follow the same path, the market could be reactivated .
www.buysellba.com
