Argentina’s housing market is seeing renewed activity following the relaunch of the UVA mortgage credit in April 2024, sparking conversations among Argentinians about homeownership.
In a market where property is often considered a stable and enduring store of value, the return of long-term home loans is also opening up opportunities for investors. This shift comes as Argentinians seek safe haven assets amid economic uncertainty.
Many are now asking whether it’s possible to purchase a non-primary residence with a UVA mortgage credit. The answer is yes, though not all banks currently offer this option.
Banco Nación
Banco Nación offers a line of credit that allows financing for second homes or properties valued at over 210,000 UVAs. The interest rate for this segment is fixed at 12% plus the UVA.
The bank finances up to 75% of the purchase price or appraisal value – whichever is lower – with a maximum loan amount equivalent to 260,000 UVAs in pesos, and potential assistance reaching up to 157,000 or 260,000 UVAs depending on the case.
Loan terms range from 5 to 30 years. The credit is available to salaried employees, retirees, self-employed individuals, and independent contractors. Borrowers must be no older than 85 years at the time of loan completion, and the loan can include up to two primary borrowers and two family co-borrowers.
BBVA
BBVA offers a line of credit specifically for non-primary residences, financing up to 80% of the property value without a nominal amount cap, dependent on the applicant’s income.
The credit is offered in UVAs at a fixed rate in pesos, with terms ranging from 5 to 30 years. The interest rate is 15% for clients with verified income and 17% for those without, requiring a minimum income equivalent to four minimum wages for the primary borrower. Applicants must be at least 18 years traditional and no older than 75 at the finish of the loan term. Fire insurance is mandatory and included in the monthly payment.
Banco Hipotecario
A long-standing player in the real estate market, Banco Hipotecario finances up to $250,000,000, covering up to 80% of the property value for both primary and secondary residences. The maximum term is 180 months (15 years), with a nominal interest rate of 13.90% for clients with payroll plans, and the debt-to-income ratio cannot exceed 20%.
ICBC
ICBC’s line of credit provides up to $180,000,000 for the purchase of non-permanent residences (and up to $360,000,000 for primary residences). For second homes, it finances up to 50% of the value at a rate of 12%, dropping to 11% for those who deposit their salary with the bank. The maximum term is 20 years, requiring a minimum income of $1,100,000 and a monthly payment not exceeding 25% of income.
Banco Supervielle
The bank finances up to 65% for both primary and non-primary residences, without setting a nominal amount limit, but with strict conditions: a maximum term of 15 years (180 installments), a UVA plus 15% interest rate, and a minimum income requirement of $5,000,000 for the primary borrower.
This option is only available to salaried employees, and all borrowers must have a bank account package with the institution. Income can be combined with a spouse, partner, or parents. Applicants must be between 18 and 65 years old, with loan completion by age 75.
