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Mortgage loans: November was the worst month of the year for UVA loans - La Nacion Propiedades
Source:
December 04, 2025
After months of increases, UVA mortgage loans experienced an abrupt 51% drop in the penultimate month of the year.
By Candela Contreras
The number of mortgage loans granted in November fell by 50% after months of increases.Shutterstock
The mortgage boom ended faster than it began. After months in which UVA-indexed loans reignited expectations and boosted property prices that had been lagging, November marked a turning point: US$180 million was disbursed , the lowest figure of the year and a 51% drop compared to October (when US$372 million had been disbursed).
This setback not only halts the price increases of recent months but also returns the market to levels similar to November of last year. The blow is significant and has highlighted something that had already been anticipated: without reasonable interest rates, the mortgage boom cannot be sustained. This demonstrates that access to homeownership in Argentina remains a difficult goal .
The reason? Despite expectations of lower interest rates following the October elections, reality showed more increases than decreases . The sharp drop in lending reflects the impact of the tightening of conditions in recent months, discouraging demand.
September and October had been positive months for transactions due to a previous trend: the rush to close loans before the elections. That momentum is no longer there, and it shows. Adding to this is another factor: some institutions drastically reduced their loan offerings , even discontinuing certain lines of credit in some cases.
Furthermore, institutions like Banco Municipal de Rosario eliminated their preferential rate, lowering it to 4.2% (previously 3%), while Brubank raised its rate from 10% to 12%. Even Banco Nación increased its rate from 4.5% to 6%, although it remains the most competitive. Meanwhile, other private banks maintain interest rates above 10%. This dynamic, coupled with a lack of bank liquidity for long-term loans, constitutes a key barrier. " When liquidity becomes available, rates will fall ," market sources indicate.
Federico González Rouco, one of the economists who most closely follows the evolution of mortgage lending and the housing market, summarizes: “ We are entering a period of pause until interest rates readjust. With the current rates, the momentum of loan applications is waning, and the market is beginning to depend on Banco Nación.”
November also reveals a peculiar phenomenon: the average interest rate agreed upon was 5.9% , the lowest since April. This figure can only be explained by the increased participation of Banco Nación , which is currently supporting the market. The average loan term, however, continues to lengthen: 25.2 years , a way to lower the initial payment and make the transaction more affordable.
The credit slowdown is becoming increasingly evident. In the last three months, listed property prices in the city of Buenos Aires have shifted from a map showing 90% of neighborhoods with rising prices to one divided: only 50% continue to increase, while the remaining 40% show decreases , according to the latest Zonaprop report.
To illustrate the contrast generated by the electoral impact, González Rouco uses the situation from the week before the elections as an example: “At that time, US$148 billion in UVA mortgage loans were issued. This represents a surge of people wanting to close deals. However, after the elections, this figure dropped to US$56 billion, and in November it slowed even further.”
According to various analysts, the market is thus entering a period of stagnation. A collapse is not expected, but rather a shift in lending patterns. Whether the market will recover will depend exclusively on macroeconomic improvement, wage increases, and mortgage lines with better terms. With interest rates above 12%, fewer and fewer people can access credit to buy a home.
www.buysellba.com
Source:
December 04, 2025
After months of increases, UVA mortgage loans experienced an abrupt 51% drop in the penultimate month of the year.
By Candela Contreras
The number of mortgage loans granted in November fell by 50% after months of increases.Shutterstock
The mortgage boom ended faster than it began. After months in which UVA-indexed loans reignited expectations and boosted property prices that had been lagging, November marked a turning point: US$180 million was disbursed , the lowest figure of the year and a 51% drop compared to October (when US$372 million had been disbursed).
This setback not only halts the price increases of recent months but also returns the market to levels similar to November of last year. The blow is significant and has highlighted something that had already been anticipated: without reasonable interest rates, the mortgage boom cannot be sustained. This demonstrates that access to homeownership in Argentina remains a difficult goal .
The reason? Despite expectations of lower interest rates following the October elections, reality showed more increases than decreases . The sharp drop in lending reflects the impact of the tightening of conditions in recent months, discouraging demand.
September and October had been positive months for transactions due to a previous trend: the rush to close loans before the elections. That momentum is no longer there, and it shows. Adding to this is another factor: some institutions drastically reduced their loan offerings , even discontinuing certain lines of credit in some cases.
Furthermore, institutions like Banco Municipal de Rosario eliminated their preferential rate, lowering it to 4.2% (previously 3%), while Brubank raised its rate from 10% to 12%. Even Banco Nación increased its rate from 4.5% to 6%, although it remains the most competitive. Meanwhile, other private banks maintain interest rates above 10%. This dynamic, coupled with a lack of bank liquidity for long-term loans, constitutes a key barrier. " When liquidity becomes available, rates will fall ," market sources indicate.
Federico González Rouco, one of the economists who most closely follows the evolution of mortgage lending and the housing market, summarizes: “ We are entering a period of pause until interest rates readjust. With the current rates, the momentum of loan applications is waning, and the market is beginning to depend on Banco Nación.”
November also reveals a peculiar phenomenon: the average interest rate agreed upon was 5.9% , the lowest since April. This figure can only be explained by the increased participation of Banco Nación , which is currently supporting the market. The average loan term, however, continues to lengthen: 25.2 years , a way to lower the initial payment and make the transaction more affordable.
The credit slowdown is becoming increasingly evident. In the last three months, listed property prices in the city of Buenos Aires have shifted from a map showing 90% of neighborhoods with rising prices to one divided: only 50% continue to increase, while the remaining 40% show decreases , according to the latest Zonaprop report.
To illustrate the contrast generated by the electoral impact, González Rouco uses the situation from the week before the elections as an example: “At that time, US$148 billion in UVA mortgage loans were issued. This represents a surge of people wanting to close deals. However, after the elections, this figure dropped to US$56 billion, and in November it slowed even further.”
According to various analysts, the market is thus entering a period of stagnation. A collapse is not expected, but rather a shift in lending patterns. Whether the market will recover will depend exclusively on macroeconomic improvement, wage increases, and mortgage lines with better terms. With interest rates above 12%, fewer and fewer people can access credit to buy a home.
www.buysellba.com
