Gabriela, a public sector employee in Cuenca, Ecuador, faces the potential loss of a $5,000 down payment on an apartment due to financial difficulties, a situation increasingly common for prospective homeowners in the country. Her case highlights a growing trend of individuals exploring options to manage or exit their mortgage commitments.
One emerging strategy gaining attention is “debt buying,” a process where a financial entity acquires a borrower’s mortgage debt. While not a transfer of the debt to another individual – a practice explicitly prohibited by most banks, according to Juan Carlos Cué, a legal leader at the digital mortgage broker Morgana – it offers a pathway for borrowers to potentially reduce their financial burden.
The appeal of debt buying lies in the potential for lower interest rates. Financial institutions offering to purchase existing debt are currently advertising annual interest rates of 9.9%, which could represent a significant reduction for borrowers currently paying higher rates. This option is being presented as a way to consolidate debts and improve financial flexibility.
Several Peruvian banks are actively involved in offering debt consolidation options. The Banco de la Nación, for example, has been promoting new credit options for home purchases, and has established age limits for applicants. While specific details regarding debt purchasing programs at Banco de la Nación are not readily available, the bank’s broader focus on mortgage lending indicates an active role in the credit market.
Recent data from the Central Reserve Bank of Peru (BCRP) indicates a continued growth in mortgage lending. In November 2025, mortgage credit increased by 6.9% year-on-year, primarily driven by loans in the local currency. This growth continued in October 2025, with a 7.0% increase, according to Scotiabank. The BCRP also reported increases of 6.6% in September 2025 and 6.4% in August 2025.
Still, selling a home with an outstanding mortgage is a complex process. It does not involve simply transferring the debt to a new buyer. Instead, the proceeds from the sale are used to pay down the existing mortgage. Any remaining equity belongs to the original homeowner. The process is legal, and accounts for a significant portion of transactions handled by firms like Morgana.
The availability of mortgage credit is also influenced by age restrictions. The Banco de la Nación has specific age limits for applicants seeking new mortgages, reflecting a broader trend among financial institutions to assess risk based on borrower age.
