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Mortgage loans: not all banks allow buy-to-rent, which ones do? - La Nación Propiedades
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Créditos hipotecarios: no todos los bancos permiten comprar para alquilar, cuáles son los que sí
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www.lanacion.com.ar
July 15, 2025
Not all entities give loans to buy apartments as an investment.
By María Josefina Lanzi
These are the banks that allow you to buy a property with a mortgage loan to rent. Gonzalo Colini.
Since mortgage lending was launched in April of last year, the possibility of owning a home has taken center stage and become a recurring topic of conversation among Argentines. Furthermore, real estate has regained its appeal as an investment option, with profitability growing last year (reaching 5.37% in May , according to Zonaprop), leading many to look again at this sector as a way to secure and expand their savings.
In this regard, some people interested in investing in properties are asking themselves: Is it possible to buy a property with a mortgage and immediately rent it out?
The experts consulted assure that, as a general principle, property purchased with a mortgage can be rented out , whether it is a property purchased as a first or second home.
However, they point out that this can change if the parties expressly state otherwise in the mortgage deed. "If the mortgage contract doesn't say anything, then it can be rented out perfectly. But there are banks whose credit lines prohibit renting out the mortgaged property," says Enrique Abatti, a lawyer specializing in the real estate market and president of the Chamber of Property Owners of the Argentine Republic.
The experts consulted assure that, as a general principle, the property acquired with a mortgage loan can be rented, whether it is a property purchased as a first or second home. Shutterstock.
Which banks allow renting out a property purchased with a mortgage?
Since specialists recommend investigating each bank's mortgage credit line clauses, LA NACION consulted each bank and learned what 15 Argentine banking entities that offer this type of loan stipulate.
Banks that allow it
- Banco Hipotecario: If the loan is purchased as a permanent, single-family home, it cannot be rented out. If it is purchased as a second home, it can be used as a rental.
- Banco Ciudad: This is not possible for a primary residence, as the contract stipulates that it is a permanent, single-family home; it is possible for a secondary home.
- Banco Santander: They clarify that it is possible for a second home, but not for those acquiring a first home.
- Comafi: Whoever takes out the mortgage loan must declare whether the property is intended for permanent residence or not. If it is intended for permanent residence, it cannot be rented. If they declare it is for non-permanent residence, it can be rented.
The banks that prohibit it
- Banco Galicia: Whether it's a loan for a first home or a second, "there's a clause in the contract specifying that the property is for permanent, personal use," the bank notes.
- Banco Nación: "It's not possible. Our mortgage loans are for single-family homes and permanent occupancy," they explained.
- BBVA: Does not allow it. The BBVA UVA mortgage loan is intended exclusively for the purchase of a single-family home for permanent occupancy. "The property provided as collateral cannot be subject to current rental contracts or used for rental purposes for the entire term of the loan," the bank also stated.
- ICBC: No rentals, whether for a first or second home.
- Banco Patagonia: This is not possible; the mortgage clauses expressly state that this option is excluded.
- Bancor (Banco de Córdoba): This line is for single-family homes, so it doesn't allow for purchases to be immediately used for rental.
- Rosario Municipal Bank: The bank clarifies that homes purchased with a mortgage cannot be rented.
- Bancos Santa Fe, Entre Ríos, San Juan, and Santa Cruz (Petersen Group): do not allow rental loans, whether for a first or second home.
There are four banks in Argentina that allow you to buy a property with a mortgage and immediately use it for rent.
Is this purchasing model a good option for investment?
There are various scenarios that can lead someone to want to purchase a property and put it up for rent.
Some people may invest in it because they still live with their parents or a relative and work, but don't yet need to become independent, so they buy a home they will move to in the future. This way, they rent the property and pay off the mortgage payments with the income provided by the tenant. Other people may be interested in buying a property this way because they already own a property but are looking to move to a larger property. This way, while living in a smaller house, they can pay off their new property (the successive mortgage payments) without having to add other expenses. Another possible scenario for those who choose this option would be those who choose real estate as an investment: they are looking for it to generate income in a few years, although for several years the profit from the rent will simply have to be used to pay off the loan.
But is it a good investment? Economic analyst Darío Rubinsztein answers: “ It depends. In the United States, it's the most common thing in the world to buy properties with mortgages and rent them out, paying them off with the tenant's income. But you have to analyze several points to see if the equation makes sense .”
First, consider whether the interest rate is fixed or variable. If the latter is the case (which is the case for virtually all mortgage loans offered in Argentina today), consider analyzing inflation . UVA loans are adjusted for inflation, which means that if inflation soars, the loan becomes significantly more expensive. It's also important to note that the interest rate on loans for second homes is usually higher than that offered for first homes , as the Argentine banks surveyed allow rental loans only for second homes. This is the case with Banco Ciudad, which offers a 4.5% rate for the purchase of a single, permanent home in certain areas (such as Lugano or La Boca) and 8.1% for others. However, if the loan is for the purchase of a non-permanent home, the rate rises to 11.1%.
The investment of buying a property and renting it out will depend on several factors. PitukTV - Shutterstock.
Another indicator to consider is whether the loan finances 100% of the property or only a portion, and therefore requires savings . If the latter is the case, the economist suggests keeping in mind that it would be good to have extra savings, since if the tenant leaves the property early, someone else will have to cover the loan payments. It's also worth adding that some banks, when it comes to loans for second-home purchases, finance less than the value of the property. This is the case with Banco Santander, which finances 75% of the property's value for permanent properties, but for non-permanent properties, it lends up to 50% of the property's value.
Another important fact worth clarifying is that those considering purchasing a property with a mortgage to rent out and using second-home loans will have to pay VAT on the purchase price , meaning the property would be a percentage more expensive. One of the banks consulted adds an analysis on this matter, warning that the rental income may not always cover the loan installment. "If they declare it as a non-permanent residence, they pay VAT on the interest. Thus, if they rent it out, the income will likely not cover the entire loan installment, but rather approximately 70% (this is if they take out the loan with a 25% down payment)," explains COMAFI.
Other experts point out that, given the current interest rates, loans are expensive and wouldn't yield such a high return. " I don't see it as a good investment , because you're paying a 7% interest rate on a loan for something that will earn you a 4% or 5% gross income (that is, without deducting taxes or the maintenance costs that the new property will entail). It might be good for someone who buys an apartment thinking they'll use it in a couple of years and, in the meantime, pays for it with rent," says Federico González Rouco, an economist specializing in housing.
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