Argentine banks are increasingly offering mortgage loans for properties not designated as primary residences, a shift signaling a broader recovery in the country’s housing credit market. While the availability of these loans was limited following a period of economic instability, several financial institutions now provide financing for second homes or investment properties, albeit with varying terms and conditions.
Banco Nación, the national bank, currently offers a line of credit that permits the purchase of second homes or properties valued at over 210,000 UVAs (Unidad de Valor Adquisitivo, an inflation-indexed unit of account). The interest rate for this segment is fixed at 12% plus the UVA, with financing available for up to 75% of the purchase price or appraised value, whichever is lower. The maximum loan amount is equivalent to 260,000 UVAs, with assistance potentially reaching 157,000 or 260,000 UVAs depending on the specific case. Loan terms range from 5 to 30 years, and are open to salaried employees, retirees, self-employed individuals, and monotributistas (small taxpayers). Borrowers must be under 85 years of age at the time of loan completion, and up to two co-borrowers are permitted.
BBVA, another major financial institution, too offers a line of credit for non-permanent housing, financing up to 80% of the property value without a nominal maximum loan amount, dependent on the applicant’s income. The credit is offered in UVAs at a fixed rate in pesos, with terms ranging from 5 to 30 years. The interest rate is 15% for clients who deposit their salary with the bank and 17% for those who do not. Applicants must demonstrate a minimum income equivalent to four minimum wages, and the minimum age for application is 18, with a maximum age of 75 at the end of the loan term. Fire insurance is mandatory and included in the monthly payment.
Banco Hipotecario, a historically significant player in the Argentine real estate market, finances up to $250,000,000, covering up to 80% of the property value for both primary and secondary residences. The maximum term is 180 months (15 years), with a nominal interest rate of 13.90% for clients with payroll accounts. The debt-to-income ratio cannot exceed 20%.
ICBC offers financing of up to $180,000,000 for the purchase of non-permanent housing, and up to $360,000,000 for primary residences. For second homes, it finances up to 50% of the value at an interest rate of 12%, reduced to 11% for those who deposit their salary with the bank. The maximum term is 20 years, requiring a minimum income of $1,100,000 and ensuring the monthly payment does not exceed 25% of the borrower’s income.
Banco Supervielle finances up to 65% of the property value for both permanent and non-permanent housing, without a nominal maximum loan amount. However, it imposes strict conditions: a maximum term of 15 years (180 installments), a UVA plus 15% interest rate, and a minimum income requirement of $5,000,000 for the applicant. This option is exclusively available to salaried employees, and all applicants must have an account package with the bank. Combined income with a spouse, partner, or parents is permissible. Applicants must be between 18 and 65 years old, with loan completion by age 75.
