Population requests mortgages that are of higher amounts

MEXICO CITY (El Universal).— The Mexican population is taking out mortgage loans from commercial banks for larger amounts, with an average of 2 million 239 thousand pesos at the end of April, despite the rising housing prices that prevail in the country, according to figures from the Mexican Banking Association (ABM).

Data from private banking in Mexico show that in April 2022, bank credit contracted for a mortgage was 1 million 845 thousand pesos, while in the same month last year the amount was 2 million 107 thousand pesos.

However, the good dynamism of the economy and competition between banks has meant that the placement of credit for home purchases has continued, reaching a total of 84.2 billion pesos between January and April, an annual increase of 1.4%.

According to data from the Federal Mortgage Society (SHF), at the end of the first quarter of the year the price of homes with mortgage loans increased 9.7% compared to the same period of the previous year, with an average per property of 1 million 702 thousand pesos.

According to Enrique Margain, executive director of retail lending at HSBC Mexico, despite the increase in prices in the sector, there is interest among the population looking for larger mortgage loans to acquire higher-value homes, while new products such as green mortgages or homes in entities outside of large cities are in high demand.

“The strong competition in the banking mortgage sector, plus the good performance of portfolios, have allowed interest rates to remain at certain very constant levels and growth has been lower than the movement in the reference rate. Basically, from levels of 9.2% to 10.5%, a growth of 130 basis points,” he explained.

Data from banks operating in the country show that the number of mortgage loans taken out has been lower amid a high-price environment; however, the population has a good level of income and is taking advantage of the current market conditions.

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