Homes of up to $103,000 enter preferential credit in banks and mutuals

The lowest interest rate to buy a house can be obtained if it has an appraisal of up to $103,000 and is qualified as public interest housing (VIP). That cap increased for this 2023 because it is adjusted each year according to the unified basic salary.

These houses have financing facilities: 4.99% annual interest and 25 years to pay it off if they are new and if the buyer does not have another one in their name. To be considered a VIP, its cost must not exceed 229 unified basic salaries and now that the minimum salary of $450 has come into force, the ceiling has gone from $97,325 to $103,050.

The good thing about the adjustment is explained by the vice president of Constructores Positivos, Joan Proaño: before, they would have had to give $20,000 down and pay $750 a month, but now, by benefiting from preferential credit, the entry will be $5,000 and installments of $550. Therefore, it indicates that you should take advantage of and look for these VIP homes.

So that the difference can be compared, he gives an example that for a house of $100,000 with normal credit the rate would be 8.45%, with an entry of 20% of the value of the property and with a maximum term of 20 years and so on. the estimated fee would be $762.73. However, with the VIP credit the rate is reduced to 4.99% and the entry to 5%, while the term is extended to 25 years and with these financial conditions the estimated fee would be $554.

These facilities are also given for social interest housing (VIS), whose maximum value went from $75,650 to $80,100, in this case the limit is 178 unified basic salaries.

Requirements to access this financing:

• The house must be qualified as VIP or VIS by the Ministry of Urban Development and Housing (Miduvi).
• It must be your first home, not have another in your name.
• It must be brand new.
• The cost per square meter should not exceed $1,120.50.
• The applicant’s monthly income must not exceed 6.34 unified basic wages, which represents $2,853, and if applying with a spouse, the combined monthly income must not exceed that amount.

Not all financial institutions have this type of credit. Among those that do promote it is Banco Pichincha, which finances low-income housing. from $25,906.50 to $79,947 with a minimum area of ​​57 square meters and housing of public interest from $79,951.50 to $102,789. It offers a reference rate of 4.87%, on its website indicates that it finances 100% of the value of the home, including legal expenses, appraisals and a special contribution to Solca, and a term of 20 to 25 years.

The Banco General Rumiñahui VIP credit covers amounts from $79,948 to $102,789 at a rate of 4.88%, a maximum term of 25 years and with financing of up to 100% of the commercial appraisal value, including legal expenses. And for social interest housing, from $10,000 to $97,947 with the same conditions.

Mutualista Azuay offers loans of up to $103,000, at 4.88% and up to 25 years. While in Mutualista Pichincha the nominal rate for these loans is 4.88% and the effective rate is 4.99% compared to 10% on average for normal real estate housing loans, as detailed in its tariff.

These institutions are also part of the 5-25-5 program that the Government promotes and consists of financing social interest and public interest housing with 5% interest, at 25 years and with a 5% down payment. The registered projects are published on the Miduvi portal at https://miduvi.movie.blog/link-in-bio/ and the contacts of the promoters are also listed.

Biess no longer finances 100% of homes

The Bank of the Ecuadorian Social Security Institute (Biess) now finances up to 95% of the appraisal value of the home of up to $90,000 and if the appraisal of the real estate is greater than that and up to $130,000, it finances up to 90%. When the appraisal is greater and up to $200,000, it lends up to 85% of the appraisal and in homes greater than $200,000, 80%. Credit applications made until December 31, 2022 will maintain 100% financing of the homes up to $130,000, according to Resolution BIESS-DIR-RS-034-0326-2022 issued on October 14, 2022.

Financing depends on the ability to pay, which is the maximum amount that a person can borrow without endangering their finances, they can commit up to 40% of their income declared to the IESS, after deducting the personal contribution and the debts reported by the Credit Bureau. The maximum amount of the Biess mortgages remains at $460,000.

The Biess also has preferential credit for unique and first-use (new) housing, with more than one room and commercially valued up to 228.42 unified basic salaries ($102,789) and family income of up to 6.34 basic ($2,853). . The lowest rate that applies is 5.99%. (YO)