Mortgage Loans
Even though these are difficult times, Banco Ciudad remains firm with its lines to finance dwellings and it is creating actions to be able to keep this offer in the future.This is a nation where variables such as inflation and the craziness surrounding the Buenos Aires Real Estate market, make the buyers especially vulnerable. Mortgage loans are indispensable to have a reasonable access to buy a home, and it has not been an abundant resource in the local market. The offer is limited, while the demand is huge and keeps growing as many people wants to acquire a property with no success.
Looking for solutions to this predicament, the Banco Ciudad created lines to access properties. Its initiative generated a great impact and interest due to its diversified offer, planned based in the needs of the debtors. But this successful initiative came to an end a year ago, when a law passed by the Congress deprived the Entity of its judicial deposits, which were vital to its funding and ability to offer credit to potential buyers. The bank had to increase the interest rates to compensate the lack of resources. The exchange controls also supposed a drawback in the Buenos Aires Real Estate market also creating inflation.
Nevertheless, the bank intends to keep the offer of credit to buy properties. On July Mi Casa BA an initiative along with the Instituto de la Vivienda de la Ciudad which generated an immediate response of over 2 million enquiries in the entity’s website. This line offers a loan up to 1,000,000 Argentine pesos, with a fixed rate of 5%. The capital is adjusted by a “canasta” (Hogar 5) of the system of prices’ indexes of the City of Buenos Aires. It offers the 80% of the value of the property. The debtors go through a screening based on a scoring system which takes into account their needs. An income equivalent to a minimum wage and no unfavorable financial background are requirements. The Instituto Vivienda provides the funds of the trust administered by the Banco Ciudad. Other lines are Tasa Escalonada, Zona Sur, Ciudad Vivienda, Ciudad Social and Primera Casa BA.
According to the entity, in 2012 4900 credits were granted for a value of 1,300,000 Argentine pesos. In 8 months in 2013 only 1670 for a value of 530,000,000. In the middle of the uncertainty, the institution is working to keep and eventually expand the offer to the interior of the country. Banco Ciudad signed an alliance with Instituto de la Vivienda Corrientes (Invico) and Banco de Corrientes to start operating in this city. Vice-governor Pedro Braillard Poccard reckons this offer may benefit 2,000 inhabitants in the city of Corrientes.
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