Mortgage loans: what happens if I can’t pay the fee?

Many people have seen the dream of having their own home turned into a nightmare by not being able to pay the fees of their mortgage loan. Due to the high inflation rates in which Argentina has been and is currently, coupled with the low wage increase and salary delay, the loan installments have become an increasingly heavy burden for Argentines. Further illustration at http://www.makhanlaluniversity.org/payday-loans-online-get-a-fast-easy-fast-instant-loans-today/

Mortgage loans: what they are and factors that influence fees

These are mortgage loans whose monthly payments are directly influenced and adjusted by the Purchasing Value Unit. The unit of measure called UVA is published daily by the Central Bank of the Argentine Republic. 

Mortgage loan installments: inflation and salaries

Mortgage loan installments: inflation and salaries

To better understand why the UVA loan installments have become virtually unattainable for Argentines, we have to know two key factors: inflation and salaries.

Inflation: the great nightmare of loans

The installments and the total debt are updated monthly, and this is directly affected by inflation. The greater the inflation, the greater the increase in the installments of the credits.

During 2018, due to the economic situation of the country, the requirements of mortgage loans have tightened and have experienced an increase of almost 50% in the installments in 2018. 

Salaries: far from being up

While became more expensive to 46.9% this 2018, salaries only experienced an annual increase of 26.2%. These data reveal a situation in which Argentines are overcome by quotas that do not stop rising and wages that fall short to be able to afford everything.

Thus, now they should have twice the salary to be able to pay for the same home they decided to buy time back. A situation that is very far from reality where quotas exceed the salary increase.

When mortgage loans began to be offered, banks and financial institutions simulated the economic scenario and the fees to be paid but failed to anticipate what the reality would be.

What alternatives do I have if I cannot pay the mortgage loan fee?

What alternatives do I have if I cannot pay the mortgage loan fee?

If you are a debtor of credit you must know the current regulations on these loans and their clauses.

Current regulations require banks to extend the term to cancel the loan in case inflation exceeds the salary increase by 10%. At the time that situation occurred, the client has the right to request the extension clause.

How do I request the extension of the term of a mortgage loan?

How do I request the extension of the term of a mortgage loan?

If inflation exceeds the salary increase by 10%, you have the right to request the extension clause from the bank.

By extending the term you can get the terms extended and the values ​​of the installments of your UVA mortgage loan redetermined in order to reduce the amount of the installments.

According to Communication A 5,946 of Argentina, it is established that when the debtor requests the extension clause, the bank must extend the period originally provided for up to 25%.

Bills to modify mortgage loans

Bills to modify mortgage loans

Aware of the unstable and difficult situation that inflation is assuming and the rise in the installments of loans, some political groups have presented bills in order to improve the situation.

The deputies propose that the quota be updated by the inflation index or by the salary index, depending on which of the two is lower. Through this bill, it is intended that the rise in fees be always as low as possible.

This bill proposes that all those who have applied for a UVA mortgage loan, do not have to pay a price higher than 100,000.

For all the changes and instability that the economy can have, it is always important to ensure that there is sufficient family savings and that there is the economic capacity to face the adversities and difficulties that may come. Check your financial status and know if you appear in Veraz for debts, they are a good way to ensure your financial solvency.