What is the big problem with the new mortgage loans from Banco Nación, according to a national deputy

Banco Nación offers mortgage loans but some objections are beginning to appear. One of those who turned on the warning signs was the national deputy Julio Cobos who points to some conditions given by the banking entity.

“As we have maintained all these years, Argentina urgently needs a robust, durable and reliable mortgage credit system; that allows reducing the housing deficit and gives access to their own home to millions of families throughout the national territory. There is no debate about that and it should be a State policy that involves all sectors, fundamentally the banking sector,” Cobos said after seeing the credit proposal from Banco Nación.

Although he welcomes the return of credits under the UVA system, he points out that there are two “very important things that we cannot ignore and they make reality.” In that sense, he indicated that “some of the conditions of these loans, with zero risk – as always – are for the banks and the entire weight on the possible borrowers, no shared effort.”

And on the other hand, “no one seems to take into account thousands of families who have UVA credits and who need Congress to move forward with the law that we approved in Deputies.”

THE OBSERVATION

“The Banco de la Nación Argentina offers a line of credit with quite particular characteristics. For the credit to be adjusted for salary variation, insurance must be paid, but this does not imply that if inflation exceeds the salary the difference is canceled at that moment with the insurance, on the contrary: debt accumulates at the end of the credit,” he explained. the former governor of Mendoza.

With this criterion, “contracting insurance implies raising the credit rate from 4.5% to 6%. In a 30-year loan the installment payable each month would increase by 20%, in one to 20 years the insurance contracted increases the installment payable by 15%. In short… between 15% and 20% more fee for having the insurance.”

The radical legislator said that the proposal approved in the Chamber of Deputies and which hopes to be discussed in the Senate, is the most convincing because “the insurance cancels mismatches between inflation and salary – it does not postpone the end of the credit – through a compensatory fund established by the shared effort of the financial system and the mortgage debtor.”

“I reiterate this because this difference is fundamental: the fund of the project that we approved contributes to the banks the difference between inflation and salaries and cancels it. The current one proposed by the BNA does not cancel it, it moves the debt to the end and offers a new credit to cancel it.”