Argentine banks lower mortgage rates following FGS funding auction

Argentine banks are significantly reducing interest rates for UVA mortgage loans following the first auction of the Fondo de Garantía de Sustentabilidad (FGS). This government-backed initiative aims to inject long-term funding into the financial system to facilitate access to first homes.

Banco Ciudad has introduced a preferential fixed rate of 6.5% for first-time buyers in Buenos Aires. For a loan of $100 million pesos over 25 years, the initial installment is estimated at $658,000, requiring total household income of at least $2,632,000. Other major banks are also adjusting their terms: Banco Supervielle reduced its rate from 15% to 7.5% and lowered minimum income requirements, while Banco Galicia dropped its rate from 9.5% to 7.5%. Banco Patagonia and Banco Santa Fe have also lowered rates to remain competitive within the FGS framework.

Additionally, ICBC and Criba Real Estate have launched a 20-year mortgage program specifically for properties under construction, allowing buyers to secure financing from the moment a purchase agreement is signed, rather than waiting for the final title to be issued.