What is the Best Mortgage Credit?

In the framework of the search for options to undertake with the objective of acquiring a home of one’s own, one of the main ways to achieve this task is the acquisition of mortgage loans, which allow you to have a high amount that covers, almost in its entirety, the cost of housing and which are payable in the long term through periodic monthly installments calculated under fixed or variable rates of regulation.

In recent years, the impetus and efforts invested in the reactivation of the real estate market are highly visible, and new forms of mortgage financing have emerged that offer greater facilities to the client.

By the end of 2016, a unit of measure or regulation has arisen to which a novel form of mortgage credit has been subjected on this side of the continent. This unit of measure is called UVI or housing unit, which is used in a new credit model tested in countries such as Chile.

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Whose format adjusts the loan installments according to inflation, allowing the value of monthly payments to be only greater than 60% of the current value of a rent, a percentage and value.

Mortgage credit based on the UVI is a good option for home purchase, given that even the Central Bank has literally stated in recent reports to the year in which it began to implement that the base value of this credit is equivalent to one thousandth of the construction cost of one square meter in a property.

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Updates to the Referral Update Coefficient or CER are those that govern the value of the installments to be paid in this type of credit.

To date, many banks have adhered to these new mortgage loan policies, so if an individual is interested in acquiring or applying for this UVI mortgage loan, it is advisable to analyze each of those who offer these services and compare their loan products or mortgage services for this new year.

One of the most outstanding banks in terms of accepting these new policies is HSBC Bank, whose director, Constantino Gotsis, has stated that there is a great demand for individuals interested in these new opportunities and that his bank would like to offer a helping hand in the search for a solution to this housing need.

For this reason, at the beginning of the implementation of this form of credit, this financial institution had a capital of 800 million pesos, capital that has been increasing constantly in this last year due to the demand for this financial product.

How to get pre-approved for a Mortgage (Video)

Mortgage credit simulator discover the best options

With the wide variety of options to choose from when applying for mortgage loans, it is necessary to carefully analyze each of the options to determine which one best suits our current needs.

It is necessary to consider several points and variables that define the nature of a credit offer, some of these points are key to decide which is the best option to follow.

Among these points are the payment term of each installment, the approximate amount to be paid according to a specific value of the home, the interest rate that governs the credit and the percentage of financing of the same.

Mortgage loans have some conditions or statutes, these may vary according to the financial institution.

Some of these conditions are:

  • The payment fee is updated monthly according to the interest rates and regulations (Directly, the BCRA website will publish the current value of the UVI).
  • The maximum loan repayment period is 15 years.
  • The maximum loan amount is $2,000,000.
  • The percentage of financing for housing is up to 70%.
  • They have a French amortization system.
  • The Annual Nominal Rate (ANR) is set at 5%.
  • The Ratio of Contribution to Income Ratio (RCI) is 35%.

With the basic data of the loan conditions arranged by the bank, you can carry out a UVI-based mortgage simulation.

To carry out this simulation you can access the website Calculator and Simulator of Credits, which is a calculator specialized in the calculation of quotas under the UVI rate and that allows to know the diverse variables, advantages and disadvantages of each modality and option; besides an estimation of the approval of the credit based on your financial conditions.

Requirements to Access UVI Credit as the Best Current Mortgage Credit Option

In order to have access to the best mortgage credit options, the corresponding and updated legal documentation must be available.

Mainly on the client’s financial statements, which help to decide if the client’s financial capacity is sufficient to grant the loan.

The relevant documentation for UVI credits is very similar to common credit, with certain extra paperwork or documentation that can be requested depending on the bank.

For this reason, it is advisable to request all the relevant provisions and gather them under the appropriate legal advice, in order to ensure that you have all the documentation in order and without fault. The following is the general documentation required for this type of loan:

  • Legible photocopy of a personal identification document (DNI).
  • Simple photocopy of the title deed to the property.
  • Credits for construction, completion, extension or modification of spaces must present 2 copies of the plans of work as an extra.
  • Work in a dependency relationship.
  • Last three pay stubs and payroll statements.

For Independent Self-Employed

  • DDJJ of current earnings, presentation ticket and payment.
  • Last freelance payment and AFIP registration form.

For Independent Mono-tributors

  • Proof of registration in Monotribute.
  • Payment Credential F152.
  • Last 3 Monotributo payments due.
  • Application letter with a maximum term of up to 15 years and the requested amount of up to $2,000,000 (two million pesos).