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The mortgage lending pause is raising alarm bells in the real estate market: Is the recovery slowing down? - La Nacion Propiedades
Source:
www.ambito.com
September 10, 2025
By Jose Luis Cieri
The decision by banks to suspend loans and scoring, along with the high dollar following the government's defeat in the province, could dampen a booming sector.
The real estate market was doing very well, but now without easy access to mortgage credit, the future scenario could become complicated again.
The partial halt to mortgage lines of credit , the rise in rates, and the tightening of conditions raised warning signs in a real estate market that had begun to show signs of recovery. A total reduction in lending is expected in the coming months, after transactions exceeded 19,000 in the first half of 2025, representing a 72% increase compared to the same period last year. The situation worsened after the ruling party's defeat in the provincial elections , which caused a rise in the dollar and generated further uncertainty.
Starting in May 2024, some 24 banks in the country have resumed lending for home purchases , helping to position a real estate market that has emerged from more than five years of crisis. But now the situation could become more complicated again.
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Banco Ciudad has paused accepting new loans, although it confirmed it will disburse already approved loans. At the same time, Banco del Chubut halted operations for ten days, and although it claimed to have reactivated them, practical conditions still show limitations.
The entities attributed the decision to a product review process and internal adjustments. However, sector specialists point out that behind the pauses lies a structural difficulty: the lack of long-term funding to sustain 20- or 30-year loans in a volatile economic context. With rising interest rates, a dollar that has risen nearly $200 in less than two months, and stricter scoring requirements , families are encountering increasing obstacles to accessing credit.
A bank scoring system (including Veraz in some banks) is a minimum score that banks use to decide whether to approve a mortgage loan; it assesses the customer's creditworthiness. This score makes it difficult to access because it requires a near-perfect credit history, raises the bar during times of economic instability, and excludes profiles that don't fit its strict criteria.
Santiago Magnin , founder of Deinmobiliarios and a real estate specialist, said that Banco Nación is currently the only institution with a rate considered reasonable, with a total financial cost of 4.73% in UVA. It is followed by banks such as Credicop and Supervielle with rates that double the cost, and others, such as Banco Macro, which raise it to 15% annually. Magnin explained that this uncontrolled increase in rates is a destructive way of not granting loans, since the conditions become totally unattainable for any applicant.
Magnin noted that while the number of transactions and prices had been showing positive momentum, these new conditions are a very negative sign. Although Banco Nación maintained its low rate, it tightened its scoring system in a "totally insane" way, leaving very few people eligible for loans. This scenario, combined with the high rates at other banks, caused the credit bubble to collapse, which could lead to a drop in transactions and the number of mortgage deeds, which would cause the real estate sector to return to a situation similar to that of the crisis years.
Volatility and tightening of banks could frustrate the dream of owning a home
The combination of higher rates and more stringent requirements directly affects the buying and selling process. According to operators, nearly 20% of current transactions in Buenos Aires City depend on mortgage financing. When this channel is cut off, buying and selling chains that rely on credit are disrupted. "Suddenly, the rules change, and many are left out," Magnin commented.
Fabián Achával , CEO of Fabián Achával, which produces Radar Inmobiliario, explained that "due to the inertia of credit operations, what we will see in the coming months is the result of rising rates and a decrease in banks' lending capacity."
The expected turbulence in an election year explains the appetite for the dollar, which impacts interest rates. "It's crucial to see the impact the election results will have on interest rates and exchange rate volatility. We'll need to monitor how the real estate market handles it in the coming weeks. But if the macroeconomic situation doesn't become disrupted, lending could return to normal," Achával added.
Marta Liotto , from the Buenos Aires Real Estate Association, noted that if the pause is extended, the impact will be far-reaching. “It would be like going back to the past, to the years when financing was almost nonexistent. It wouldn't be a setback just for buyers and sellers, but for society as a whole,” she stated.
Liotto added that the situation is aggravated by the high cost of construction. He added: "The price per square meter is between US$1,600 and US$1,900, a very high figure. If you add to that the land, labor, and risk, the situation becomes complex."
According to Zucheli, the pause has different effects in each city. “Prices have remained stable in recent months, but uncertainty about credit forces us to adjust specific operations. If there's no accessible financing, searches and projects are paralyzed,” she stated.
Roca Avenue, in a dynamic area of Puerto Madryn, in the province of Chubut. The bank in this province has already suspended mortgage lending.
Regarding the situation in the province, he described the real estate market in this corner of Patagonia as presenting very different realities in its main cities. Comodoro Rivadavia is still feeling the effects of the changes at YPF, while Trelew maintains a more conservative market. "Puerto Madryn continues to enjoy strong demand thanks to its beach and whale-watching attractions, and Esquel, in the mountains, also attracts attention due to its natural features. Despite these differences, prices have generally remained stable in recent months."
Economist Federico González Rouco of the consulting firm Empiria warned that "the market was structured with financing. If there's no credit, it will have to restructure itself again or wait for everything to settle down next year."
A prolonged slowdown not only affects those looking for their first home, but also freezes the transaction chain. People looking to sell to buy a larger property, or move to another area, will see their plans thwarted if potential buyers cannot access a loan. The market would once again rely solely on genuine savings, favoring cash transactions and causing a general slowdown.
“Everything is based on predictability and trust. A reliable, serious, and transparent economic and political landscape is the only thing that can restore mortgage lending to the position it had begun to regain. If not, it will be a very significant setback for Argentine society,” Liotto concluded.
www.buysellba.com
Source:
La pausa en los créditos hipotecarios enciende alarmas en el mercado inmobiliario: ¿Se frena el despegue?
La decisión de bancos de suspender préstamos, scoring, junto al dólar caro tras la derrota del Gobierno en la provincia, podría apagar un sector en alza.
www.ambito.com
September 10, 2025
By Jose Luis Cieri
The decision by banks to suspend loans and scoring, along with the high dollar following the government's defeat in the province, could dampen a booming sector.
The real estate market was doing very well, but now without easy access to mortgage credit, the future scenario could become complicated again.
The partial halt to mortgage lines of credit , the rise in rates, and the tightening of conditions raised warning signs in a real estate market that had begun to show signs of recovery. A total reduction in lending is expected in the coming months, after transactions exceeded 19,000 in the first half of 2025, representing a 72% increase compared to the same period last year. The situation worsened after the ruling party's defeat in the provincial elections , which caused a rise in the dollar and generated further uncertainty.
Starting in May 2024, some 24 banks in the country have resumed lending for home purchases , helping to position a real estate market that has emerged from more than five years of crisis. But now the situation could become more complicated again.
The video player is currently playing an ad. You can skip the ad in 5 sec with a mouse or keyboardFind out more
Banco Ciudad has paused accepting new loans, although it confirmed it will disburse already approved loans. At the same time, Banco del Chubut halted operations for ten days, and although it claimed to have reactivated them, practical conditions still show limitations.
The entities attributed the decision to a product review process and internal adjustments. However, sector specialists point out that behind the pauses lies a structural difficulty: the lack of long-term funding to sustain 20- or 30-year loans in a volatile economic context. With rising interest rates, a dollar that has risen nearly $200 in less than two months, and stricter scoring requirements , families are encountering increasing obstacles to accessing credit.
A bank scoring system (including Veraz in some banks) is a minimum score that banks use to decide whether to approve a mortgage loan; it assesses the customer's creditworthiness. This score makes it difficult to access because it requires a near-perfect credit history, raises the bar during times of economic instability, and excludes profiles that don't fit its strict criteria.
Higher rates, more requirements, and dropped transactions
The tightening of conditions extends to the rest of the financial system. Banco Macro raised its APR to levels close to 15%, and Banco Nación tightened its scoring system , excluding a large portion of potential applicants and families or individuals who managed to raise at least 25% of the value for the down payment on the property purchase and the associated expenses (including the real estate commission).Santiago Magnin , founder of Deinmobiliarios and a real estate specialist, said that Banco Nación is currently the only institution with a rate considered reasonable, with a total financial cost of 4.73% in UVA. It is followed by banks such as Credicop and Supervielle with rates that double the cost, and others, such as Banco Macro, which raise it to 15% annually. Magnin explained that this uncontrolled increase in rates is a destructive way of not granting loans, since the conditions become totally unattainable for any applicant.
Magnin noted that while the number of transactions and prices had been showing positive momentum, these new conditions are a very negative sign. Although Banco Nación maintained its low rate, it tightened its scoring system in a "totally insane" way, leaving very few people eligible for loans. This scenario, combined with the high rates at other banks, caused the credit bubble to collapse, which could lead to a drop in transactions and the number of mortgage deeds, which would cause the real estate sector to return to a situation similar to that of the crisis years.
Volatility and tightening of banks could frustrate the dream of owning a home
The combination of higher rates and more stringent requirements directly affects the buying and selling process. According to operators, nearly 20% of current transactions in Buenos Aires City depend on mortgage financing. When this channel is cut off, buying and selling chains that rely on credit are disrupted. "Suddenly, the rules change, and many are left out," Magnin commented.
Fabián Achával , CEO of Fabián Achával, which produces Radar Inmobiliario, explained that "due to the inertia of credit operations, what we will see in the coming months is the result of rising rates and a decrease in banks' lending capacity."
The expected turbulence in an election year explains the appetite for the dollar, which impacts interest rates. "It's crucial to see the impact the election results will have on interest rates and exchange rate volatility. We'll need to monitor how the real estate market handles it in the coming weeks. But if the macroeconomic situation doesn't become disrupted, lending could return to normal," Achával added.
Marta Liotto , from the Buenos Aires Real Estate Association, noted that if the pause is extended, the impact will be far-reaching. “It would be like going back to the past, to the years when financing was almost nonexistent. It wouldn't be a setback just for buyers and sellers, but for society as a whole,” she stated.
Liotto added that the situation is aggravated by the high cost of construction. He added: "The price per square meter is between US$1,600 and US$1,900, a very high figure. If you add to that the land, labor, and risk, the situation becomes complex."
The view from Chubut
The situation also has repercussions in the provinces. Laura Zucheli , vice president of the Chubut Professional Association of Public Real Estate Brokers and director of FIRA in Chubut, described the recent experience. “The loans marked a before and after in the real estate industry. Many people accessed them quickly and efficiently, but today the conditions changed and the Chubut bank stopped. If they continue, rates will become very high,” she indicated.According to Zucheli, the pause has different effects in each city. “Prices have remained stable in recent months, but uncertainty about credit forces us to adjust specific operations. If there's no accessible financing, searches and projects are paralyzed,” she stated.
Roca Avenue, in a dynamic area of Puerto Madryn, in the province of Chubut. The bank in this province has already suspended mortgage lending.
Regarding the situation in the province, he described the real estate market in this corner of Patagonia as presenting very different realities in its main cities. Comodoro Rivadavia is still feeling the effects of the changes at YPF, while Trelew maintains a more conservative market. "Puerto Madryn continues to enjoy strong demand thanks to its beach and whale-watching attractions, and Esquel, in the mountains, also attracts attention due to its natural features. Despite these differences, prices have generally remained stable in recent months."
Expectations and risks
Mortgage lending had shown a rebound in the first half of 2025. However, the trend has begun to reverse, and September is expected to reflect the new restrictions more strongly. Analysts agree that the continued availability of credit lines depends on a more stable political and economic environment. The immediate challenge is to restore confidence so that banks and households will once again commit to long-term loans.Economist Federico González Rouco of the consulting firm Empiria warned that "the market was structured with financing. If there's no credit, it will have to restructure itself again or wait for everything to settle down next year."
A prolonged slowdown not only affects those looking for their first home, but also freezes the transaction chain. People looking to sell to buy a larger property, or move to another area, will see their plans thwarted if potential buyers cannot access a loan. The market would once again rely solely on genuine savings, favoring cash transactions and causing a general slowdown.
“Everything is based on predictability and trust. A reliable, serious, and transparent economic and political landscape is the only thing that can restore mortgage lending to the position it had begun to regain. If not, it will be a very significant setback for Argentine society,” Liotto concluded.
www.buysellba.com
