Nicaraguan banks to increase interest rate for housing.
Banks will raise the interest rate for housing loans by one point. Currently the rates are at 9.5% (fixed rate) and 10.5% (variable rate).
Friday, August 8, 2008
The President of the Chamber of Urban Developers of Nicaragua, Alfonso Silva, said that the country's interest rates for housing is the highest in the region, not to mention having the lowest financing offers. Panama ha the best interest rate; by law it provides a subsidy which allows the rate to fluctuate between 0.75% and 4.25% and house that cost from $12,000 up to $60,000. This way both low-income and middle-class housing can benefit.
Because of fluctuations in the exchange and interest rates there is more reluctance to provide financing.
The Banking Superintendence issued a ruling ordering that starting January credit that is greater than 40% of the salary of the person requesting the loan should not be granted.
The recently approved amendment to the Housing Act provides a subsidy of 2.5% in the interest rate for mortgage loans that are not greater than $32,000.
The Chamber of Nicaraguan Housing Developers (Cadur) proposed to the Government and to the Association of Private Banks, the creation of an Insured Mortgage Fund.
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