El Salvador Reduces Mortgage Interest Rates

The government reduced interest rates for the purchase of new homes and social interest housing.

Thursday, January 27, 2011

For the informal sector, the annual interest rate for new home purchases of up to $ 20.000 went from 14.5% to 8%, and for homes over of $ 28,500 the rate dropped to 9%.

The chairman of the Social Housing Fund (FSV), Thomas Chévez told Elsalvador.com, "For the formal sector, the rate fell from 9.25% to 6% for new homes that cost $ 20.000, and 7% for the ones valued at $ 28.500."

More on this topic

El Salvador: Drop in Interest Rates for Housing

November 2014

The Social Housing Fund wants to revive the housing market by reducing interest rates for the purchase of new or used homes by 5.5%.

In the case of loans to public institutions for the purchase of new houses, the rates will drop from 6.05% to 5.50%, while for private loans for new houses, the rate will be reduced from 8.5% to 8 % for amounts ranging between $31,000 and $125,000.

Loans for Social Housing up to $125,000

October 2012

The Social Housing Fund of El Salvador has raised the maximum amount for loans to $ 125,000, following a request of the Salvadoran Chamber of Construction.

It has also announced the unification of the rates for loans for the purchase of affordable housing which will remain at 6%.

Salvadoran mortgage portfolio surpasses $2 billion

August 2008

The banking system has a mortgage portfolio that surpassed $2 billion, according to a study presented by the Multi-sector Investment Bank.

The Social Housing Fund (FSV) mortgage portfolio, valued at $878.1 million in July of this year and which corresponds to 121,075 credits for new and used houses, should also be added to the total figure.

Social Housing Fund to issue $68 million in credits up to 2009

June 2008

For the period covering the final year of the current presidential administration, the Social Housing Fund has budgeted nearly 68 million dollars to be invested in financing new housing.

Fund president Enrique Oñate said that, as a result of measures taken to assure financial sustainability and prudent application of strategies since 2004, the fund is issuing money from its own resources to meet the potential demand for the following year.

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