Latest Mortgage Rates

Latest Mortgage Rates

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Before the low interest rates, specialists recommend that the decision to purchase a property is made with time and being well informed, especially because it is a debt that will remain for 20 or 30 years.

Considering that mortgage interest rates are lower and, according to data from the Central Bank, stood at 3.42% in April – the lowest level in 13 years – it seems a propitious moment to buy a property. However, as specialists emphasize, it is necessary to evaluate all aspects of a strong investment that could last between 20 to 30 years.

For Yocelin Godoy, manager of AxionBank of Axion Group, real estate advisors, “it is a good time to request a mortgage and take advantage of this type of losses before future increases”. But this advantage does not anticipate an explosive growth in housing sales, as Bernardo Echeverría, president of the Real Estate Committee of the Chilean Chamber of Construction (CChC), explains. “There is a slight upward trend, sustained by lower rates and also because there are still homes for sale without VAT, but it should be taken into account that less formal than informal work has been created in the country and in the latter group it is difficult to access credit, “he says.

Now, if you have job stability, you could take advantage of the moment and financial and academic adviser of School of Commerce, Ricardo Matas, explains that the most convenient place to apply for a loan is “where the debtor has a business relationship, since they know his record “, although he always calls to quote.

Both Godoy and Matas believe that it is also a good time to prepay or repay these credits. “It allows to reduce the monthly payment or the years in which the debt was going to be paid,” says Godoy, who adds that, in some cases, the monthly payment can be reduced by 40%.

While Matas says that “it is convenient to prepay during the first half of the time of the agreed credit”, since there is concentrated the bulk of interest payments.

Even, “if the original financial entity charged additional interest or some extra dividend quotas, as a disincentive to the transfer of the debt to another entity, it could be equally convenient for the debtor,” he says.

Tips:
The real estate consultancy Grupo Axion provides some tips to guide those who plan to apply for a mortgage loan to acquire a property.

Make the decision in time: A mortgage is a debt that is assumed for a long period, so it must be a decision thought and analyzed seriously.
Always quote: It is preferable to compare between several institutions, in addition to the interest rate, the total cost of credit and dividend value. It should be remembered that in addition to banks, there are mutuals, cooperatives and compensation funds that make loans of this type.
Have a pre-approval bank: It is important that people first know how much the bank will lend in the case of wanting to buy a property and then go out to look with certainty and clarity.
Lower the line of credit and close the largest number of cards: Financial institutions see the available quota of the line of credit and the cards as potential borrowers’ debt. And when they calculate the amount to be lent, they subtract the amount available in both products.
Not having consumption credits: These credits subtract points when evaluating the capacity of indebtedness and the financial entities could approve a mortgage loan lower than requested.
Maintain a good financial behavior for one year: The entities analyze all the banking history of up to two years before the mortgage loan is requested, so having a correct financial behavior for a year can facilitate access to a credit.
Having some type of patrimony: The bank evaluates the patrimony when they ask for a mortgage credit, reason why the debts can not be greater to him. On the contrary, having equity and not having any debt will help the amount of the credit to be greater.
Have savings: Banks add savings as assets and this shows that the salary is enough to live and save. Consequently, the bank understands that the person is competent when it comes to paying and that he has the capacity to borrow.
Not having the line of credit busy: Seeing that the line of credit is used, the bank understands that the salary is not enough to cover the needs of the applicant, so that the latter probably does not match the client profile I would give him a mortgage loan.

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