Mortgage interest rates in Peru continued a downward trend in mid-February 2026, averaging 7.84% annually, according to recent data. This marks a decrease from 7.88% at the end of January, 7.89% at the end of December, and 7.90% at the end of November.
Julio Cabrera, a finance professor at ISIL, attributed the declining rates to increased competition among financial institutions. “There was growth in mortgage lending in 2025 of almost 8% compared to 2024. This generates greater competition among financial entities, which puts downward pressure on rates,” Cabrera stated.
Cabrera also noted that competition extends to the purchase of mortgage debt from other banks, with the aim of offering additional credit products to those individuals.
Interest rates vary significantly between banks, ranging from 7.31% to 16.52%.
Humberto Marín, commercial director of the real estate group Conforta, highlighted that the decreasing interest rates are improving housing affordability. “In 2023, rates were around 10% on average, in 2024 they were at 9%, and 2025 closed below 8%. What we have is an opportunity that benefits citizens to buy a home, as it lowers the installment to be paid,” Marín explained.
A one-percentage-point decrease in mortgage interest rates can translate to a reduction of S/ 700 to S/ 800 in monthly payments, a substantial saving for potential homebuyers considering properties valued between S/ 500,000 and S/ 600,000, according to Marín.
Looking ahead, Cabrera anticipates that the upcoming electoral cycle in Peru will have only a temporary impact on mortgage demand, as current polling data does not indicate any candidates with policies adverse to the market. He projects that interest rates will continue a slight downward trend throughout the year, potentially reaching a floor between 7.70% and 7.80% annually.
Julio Cabrera has been identified as a finance professor at ISIL, and was also cited in reporting regarding the transition of Caja Sullana customers to Caja Piura in July 2024. Christrian Alfonso Cabrera Briones is also listed as a professor at ISIL.