Real Estate Sales The 7 mistakes that can hold up a mortgage and how to avoid them (with a legal checklist) - La Nacion Propiedades

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The 7 mistakes that can hold up a mortgage and how to avoid them (with a legal checklist) - La Nacion Propiedades












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December 05, 2025





Taking out a mortgage in Argentina requires prior planning; therefore, it is necessary to know all the mistakes that can be made in order to avoid them.

There are several mistakes a person can make that could prevent them from finding "their ideal home."Shutterstock





The decision to buy a property is one of the most important financial decisions in a person's life. But the challenge doesn't begin with the search for the property, or even with the visit to the bank to apply for a mortgage . It starts much earlier: with a person's actual ability to manage a long-term loan .



Mortgage rates are constantly changing : they went from an average of 5.5% when UVA loans were relaunched, to over 10% today. Since the monthly payment is tied to inflation and an initial down payment of at least 25% of the property price is required , avoiding mistakes in the buying process is just as crucial as finding "the ideal home . "



The following are the most common mistakes that can hinder mortgage lending in Argentina and how to avoid them:

1) Realistic budget​

The first barrier isn't financial ; it's one of honesty . Knowing exactly how much you can afford to pay each month determines everything that follows. Banks are adamant: the monthly payment cannot exceed 25% of the applicant's (or family's) income.



When that ratio is stretched too far, the loan becomes unfeasible . Many buyers start their search beyond their means and then are confronted with the reality of the credit analysis . “The person has to be very aware that they will be able to pay,” says Enrique Abatti, a lawyer specializing in real estate law.



Therefore, experts recommend aiming to keep the monthly payment below 25% of income. This way, if payments increase significantly, the financial impact will be less severe, and the applicant won't have to make drastic adjustments.

2) Not taking extra expenses into account​

The mortgage is just one part of the budget . There's the deed, taxes, registration, fees, stamp duty, and then, as the homeowner, expenses, maintenance, and insurance. It all adds up .

When these costs aren't factored in from the start, imbalances quickly arise . The monthly payment might be clear, but the rest isn't. "The borrower needs to be aware that it's not just the monthly payment; there are taxes, fees, and all the expenses associated with closing costs," explains Abatti. Failing to consider these costs can throw off the planning.

3) Not having a good credit history​

A low credit score can exclude many people . Banks check absolutely everything: late payments, consumer debt, lawsuits, maxed-out credit cards, and even how many recent inquiries the person has made.



Having too many consumer loans or maxed-out credit cards creates a perception of over-indebtedness for the bank. It's crucial to review your credit profile before applying for a loan . If the numbers aren't solid, the bank won't proceed.

4) Lack of sufficient savings​

In Argentina, no bank lends 100% of a property's value . The rule is clear: up to 75% in financial institutions, with very few exceptions.

Without savings to complete the purchase—and without a small emergency fund—approval becomes more difficult. Lack of financial backing is a red flag for any lender.

5) Not researching or comparing offers​

Applying for the first offer without doing your research is a common mistake . “It’s important to research and compare several loan options from different lenders to find the best loan for your financial situation,” advises Abatti.

Analyzing interest rates, terms, and conditions can mean considerable savings.

6) Failure to properly inspect the property​

The square footage must match that declared in the Property Registry . If there are unauthorized extensions, open inheritances, injunctions, or a protected housing designation, the transaction will be halted.



Abatti sums it up directly: “A property designated for family protection must be released from that designation in order to be mortgaged. And that requires the signature of the spouse or partner.”



In addition, many mortgages include additional obligations : maintaining current insurance, not renting without authorization, and accepting inspections during the contract.

7) Sign without reading the fine print​

A mortgage loan isn't signed based on intuition . The deed must detail registration information, the exact loan amount, interest rates, penalties, and terms of execution.

The risk is real: UVA loans under the French system are characterized by a lower initial payment in pesos, which is then adjusted monthly according to the evolution of the UVA value, which is linked to inflation. Therefore, ignoring the impact of inflation can be very detrimental.



Furthermore, it's important to know that if the debtor stops making payments, the creditor can foreclose on the property and collect the principal, interest, penalties, and legal costs. "This is the core of the real security right."

Legal checklist to avoid getting lost in the process​

The basics that any buyer should check, according to Dr. Enrique Abatti:

• That the property can be sold: without open succession, inhibitions or housing protection restrictions.
• That the deed accurately identifies the property (cadastral and registry data).
• That both spouses or partners sign, if applicable.
• That the amount, interest and execution conditions are specified without ambiguity.
• That the notary register the mortgage in the Registry, as required by article 2208 of the Civil and Commercial Code.
• Ensure the property is insured and that the clauses regarding rental options and modifications are clear.
• Ensure that tax documentation is up to date.
• That the value of the property is much higher than the loan granted.

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