What are the requirements to apply for a mortgage loan in Argentina?

2019 arrives and with it new projects or future plans arise that require significant sums of money that sometimes we cannot face by our own means. Therefore, it is sometimes necessary to request financing from a bank that lends us the money we need and that helps us achieve our goals. Today we explain below what requirements are essential to apply for a mortgage loan.

Request your mortgage loan: Step by step

mortgage loan

  1. Applying for a mortgage loan requires a thorough and meticulous analysis of your financial situation and your ability to pay as it is a long process that requires a lot of responsibility. The purchase of a real estate is about the largest disbursements in the life of a person and requires a certain sacrifice and analysis to control the situation. For example, it is important to estimate the underlying extra expenses of a mortgage, have possible contingencies and add it all to the fixed expenses we have each month. It is not an easy task but it is necessary so that the situation does not surpass us.

  2. The next important step is to search and compare the different options that exist when hiring a mortgage loan. Each financial institution establishes its own conditions and requirements, so it is important to meditate well which of them will be more adjusted to the needs we have and our day today. There are banks that have special mortgages for young people, other entities allow you greater financing or have lower rates … All this is important to contrast.

The most important points to consider are the following:

  • Interest rates : they can be at a fixed rate, at a variable rate (varies according to market conditions, not recommended at this time due to inflation) or mixed rate (the contract It establishes the conditions, there may be fixed and variable rate tranches).

  • The bank’s own conditions: It refers to the bank’s own commissions such as opening, maintenance, management expenses for carrying out operations etc.

  • Do they require extra financial products? Some banks require you to hire extra financial products with your mortgage that may come in handy or not. It is something that you should value personally.

  • Return terms: The return terms that can be from 10 to 30 years depending on the amount to request.

3. Next, we must prepare the necessary documentation that will be requested to request our mortgage loan.

  • National identity document or document proving that you are self-employed

  • Not be reported truthfully or other financial reporting entities

  • Provide a credit card summary

  • Provide a contract you are working on or the document that justifies the quarterly payments of the VAT if you are employed by others.

  • Additional income

  • Required documentation that proves that you are enrolled in the AFIP and that you are up to date with the payment of income taxes.

  • Last receipts of loans or credits if we have requested at the time of contracting the mortgage.

  • Provide documentation of the real estate to buy: deeds or title of the property.

  • Lease or deeds in the house, if we live on rent or have property respectively.

  • Updated work life

Keys to take into account according to the current economic situation in Argentina

It is important to take into account the current economic situation of the financial market in Argentina to assess the best mortgage options.

In 2019, UVA mortgages plan to increase the repayment terms due to economic inflation that caused an increase in mortgage payments, for example from 20 years to 25 years.

On the other hand, it is valued to establish a ceiling of rise that prevents the increase of the quotas that are superior to 10% of the value that they would have if it had adjusted with the index of wages. In this way it is possible to adjust the quotas to the level of wages and postpone the remaining payment for when wages win inflation without the need to increase prices.

What are the requirements to apply for a mortgage loan?

What are the requirements to apply for a mortgage loan?

Each entity establishes its own requirements to apply for your mortgage loan but we tell you which are the main ones that are usually common to all.

Do you want to know what are the requirements to apply for a personal loan? We leave you a post that talks about it

  • Be from 18 years and maximum 65 to apply.

  • If you are Argentine, provide the official identity document, and if you are a foreigner, the permanent resident.

  • The minimum income usually goes from 12,000 pesos.

  • From 1 to 3 years of minimum employment, depending on whether you are an employed or dependent worker (varies by the entity)

  • Provide the official identity document

  • Documentation that proves your income according to your employment status.

Do you need to know more about Argentina’s economic news? This post will tell you about how 2018 ends the Argentine economy.