Between July and October 2020, the number of people in El Salvador exploring mortgage options online increased by 18%, and the number of Costa Rican consumers looking to buy credit cards decreased by 60%.
CentralAmericaData's interactive platform Consumer Insights monitors in real time the changes in consumer habits in all markets in the region and in other Latin American countries, with fundamental information to understand their behavior, new trends and anticipate eventual changes in their purchase patterns.
With the exception of El Salvador, bank lending is growing in Central American countries, strengthening in the years following the crisis and reaching double-digit growth in real terms.
From a report by Fitch Ratings:
Accelerating Growth: Central American bank lending has strengthened these countries in the years following the crisis, reaching double digit growth, even in real terms, with the exception of the Salvadoran banking system.
In order to address issues related to urban development and housing finance, a meeting will take place of bankers, developers and city officials, from 3 to 5 December, in Lima, Peru.
A statement of the Guatemalan Chamber of Construction reads:
The Inter-American Housing Union (UNIAPRAVI) in conjunction with the Ministry of Housing, Construction and Sanitation of Peru the fund MIVIVIENDA SA and the Peruvian Chamber of Construction will hold in the city of Lima, Peru, from 3 to 5 December 2012 the III Inter-City Forum on Housing Finance.
Lawyers from the region met in El Salvador to make progress in the projects entitled 'Central American Mortgage' and 'Dual Nationality'.
The project 'Central American Mortgage' is an agreement that aims to provide mortgage loans in each of the member nations, using property in other countries, who are also part of the treaty, as collateral.
"Dual citizenship in Central America is based on different international treaties which have a principle of reciprocity," reported Lapagina.com..
There are issues complicating the practical execution of the Treaty for the Creation and Implementation of a Central American Mortgage.
In Guatemala, the Banking Superintendence warns on the problems that would take place in that country should the regional mortgage become a reality. They argue that the "text of the treaty does not specify how to apply regular legislation in unforeseen situations, which could lead to complications in form and matter when applying the treaty". They also complain that it specifies that the States should "name a Central American Registry, but does not detail its functions, jurisdictions, competences or location".
These agents are intermediaries in mortgage management, obtaining advantages regarding both interest rates and contractual terms for their clients.
During the real estate boom in Panama, these intermediaries—people with good connections in the banking and real estate market—had foreign investors, generally from the U.S., as their main clients, assisting them in the process of obtaining mortgages for properties valued at over $200,000.
The Merrill Lynch Investment Bank is interested in buying mortgage portfolios in Central America and has made $200 available for this.
Salvadoran vice minister of Housing, Mabel de Soundy, reported interest has increased in response to the strengthen of mortgages throughout Latin America because these were granted in the local market on solid bases and have a low level of default.