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Mortgage loans: the unknown tool that could further revive the real estate market - La Nacion Propiedades
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www.lanacion.com.ar
May 20, 2025
There is one key aspect that remains absent from the agenda: the portability of UVA credits.
By Susana Valle Fonrouge
RentShutterstock
In its eagerness to boost the economy, the Argentine government has launched a series of measures in recent months aimed at stimulating credit , public works, and consumption . However, in this push to reactivate activity, a powerful, existing tool with a proven impact is being overlooked: UVA mortgage loans .
Since their creation in 2016, UVA loans have allowed thousands of families to access their first home thanks to affordable down payments, adjusted for inflation using the CER index . Despite criticisms that arose in contexts of high inflation, the instrument proved effective in contexts of relative stability. Today, with declining inflation and more competitive interest rates, the scenario seems propitious for their relaunch. And, in fact, that is happening: in the second half of 2024 alone, more than 11,000 mortgage loans were granted , mostly under the UVA modality , with an average amount of $75,000 per transaction.
In the second half of 2024, more than 11,000 mortgage loans were granted, mostly under the UVA modality, with an average amount of US$75,000.PitukTV - Shutterstock
But there's one key aspect still missing from the agenda: UVA loan portability. That is, the possibility for someone who already has a mortgage under this system to transfer it—within the same bank—to acquire a new property of greater value, increasing the original amount. This option, known as "transfer with extension ," would not only facilitate housing mobility but would also boost the real estate market and related consumption (furniture, renovations, services), without the State having to inject a single additional peso.
The possibility of transferring a current UVA loan to a new property would boost the real estate market without the need for additional public resources.Daniel Basualdo
The total stock of UVA mortgage loans in Argentina, although growing, remains low compared to other countries. It represents less than 1% of GDP, while in Chile it exceeds 25% and in Europe it exceeds 40%.
2. According to recent data, UVA-adjustable mortgage loans grew by 12.8% monthly. This shows that there is latent demand and an expanding market, but it is still far below its potential.
In a country where the housing shortage affects more than 30% of households and where access to long-term credit has historically been limited, failing to take full advantage of available tools is, to say the least, a strategic oversight. The portability of UVA loans would allow many families already paying off a loan to improve their homes without having to start from scratch, and without the financial system assuming greater risk: the client has already demonstrated their ability to pay.
Ultimately, if the goal is to reactivate the economy with sustainable instruments, the government should look beyond the announcements and focus on unlocking existing mechanisms. Incentivizing the portability of UVA credits is one of those low-cost, high-impact measures that could make a difference. All that's missing is political will and coordination with the banking system.
www.buysellba.com
Source:
Créditos hipotecarios: la herramienta desconocida que podría reactivar aún más al mercado inmobiliario
Hay un aspecto clave que sigue ausente en la agenda: la portabilidad de los créditos UVA
www.lanacion.com.ar
May 20, 2025
There is one key aspect that remains absent from the agenda: the portability of UVA credits.
By Susana Valle Fonrouge
RentShutterstock
In its eagerness to boost the economy, the Argentine government has launched a series of measures in recent months aimed at stimulating credit , public works, and consumption . However, in this push to reactivate activity, a powerful, existing tool with a proven impact is being overlooked: UVA mortgage loans .
Since their creation in 2016, UVA loans have allowed thousands of families to access their first home thanks to affordable down payments, adjusted for inflation using the CER index . Despite criticisms that arose in contexts of high inflation, the instrument proved effective in contexts of relative stability. Today, with declining inflation and more competitive interest rates, the scenario seems propitious for their relaunch. And, in fact, that is happening: in the second half of 2024 alone, more than 11,000 mortgage loans were granted , mostly under the UVA modality , with an average amount of $75,000 per transaction.
In the second half of 2024, more than 11,000 mortgage loans were granted, mostly under the UVA modality, with an average amount of US$75,000.PitukTV - Shutterstock
But there's one key aspect still missing from the agenda: UVA loan portability. That is, the possibility for someone who already has a mortgage under this system to transfer it—within the same bank—to acquire a new property of greater value, increasing the original amount. This option, known as "transfer with extension ," would not only facilitate housing mobility but would also boost the real estate market and related consumption (furniture, renovations, services), without the State having to inject a single additional peso.
Why is this possibility not enabled?
1. The current regulatory framework does not prohibit portability, but banks do not offer it. And this is where the State has a key role: it should actively incentivize financial institutions to enable this option, whether through regulatory, tax, or funding benefits. This is not a major structural reform, but rather a technical improvement with a significant macroeconomic impact.
The possibility of transferring a current UVA loan to a new property would boost the real estate market without the need for additional public resources.Daniel Basualdo
The total stock of UVA mortgage loans in Argentina, although growing, remains low compared to other countries. It represents less than 1% of GDP, while in Chile it exceeds 25% and in Europe it exceeds 40%.
2. According to recent data, UVA-adjustable mortgage loans grew by 12.8% monthly. This shows that there is latent demand and an expanding market, but it is still far below its potential.
In a country where the housing shortage affects more than 30% of households and where access to long-term credit has historically been limited, failing to take full advantage of available tools is, to say the least, a strategic oversight. The portability of UVA loans would allow many families already paying off a loan to improve their homes without having to start from scratch, and without the financial system assuming greater risk: the client has already demonstrated their ability to pay.
Ultimately, if the goal is to reactivate the economy with sustainable instruments, the government should look beyond the announcements and focus on unlocking existing mechanisms. Incentivizing the portability of UVA credits is one of those low-cost, high-impact measures that could make a difference. All that's missing is political will and coordination with the banking system.
www.buysellba.com
