According to the report from the Institute of Economics (INECO) of the Argentine University of Business (UADE), opting for a UVA mortgage loan is the most convenient option, as long as there is enough initial capital to cover the unpaid percentage of the housing. In September, a loan volume of over $100 million was achieved, a level not seen since August 2018. This is reflected in an analysis showing that, although the payments for UVA mortgage loans and rents evolve similarly, the monthly payment of the mortgage tends to be higher than the rental value, with differences between 6% and 11%.
However, this difference is not significant considering that the loan offers the possibility of owning a property envisioned as a long-term home and of larger size. In comparing loans, when applying for a mortgage of $30,000,000 to be paid in 60 installments, and maintaining funds in the National Bank, the monthly installment would be $792,488; whereas if the loan is extended to 10 years (120 installments), each monthly installment would be $363,263.
This year, more than 20 banking entities launched UVA mortgage loan lines, marking the return of mortgages for home purchases. Although not all lines are available to the general population, more and more tenants must decide between continuing with constantly increasing rents or choosing a UVA loan, despite the negative experiences of previous years. A recent analysis evaluated the monthly payments of installments and rent increases to help make the best decision between a UVA loan or continuing with a rent.
It is essential to consider these figures when planning a budget and determining the feasibility of achieving the dream of homeownership. According to UADE's report, it is advisable to opt for a UVA loan, noting that people in permanent employment, retirees and pensioners (up to 85 years), self-employed individuals, and small taxpayers, as well as contracted personnel with a valid annual contract at the time of application, can access it. To qualify, net minimum incomes must be at least $1,584,975, and if not having an account in the National Bank, the monthly installment would increase to $857,447, representing a greater financial commitment.
