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.
During January in Nicaragua, the gross portfolio of the financial system totaled $5.371 billion, 14% more than in the same month in 2017, explained in part by the performance of commercial credit.
The Central Bank of Nicaragua reported that "...The sectors with the highest representation in the portfolio are commercial credit and personal loans, with both sectors accounting for 55.4 percent of the total portfolio. On the other hand, the portfolio at risk and the past due portfolio continue to register levels below the rest of the Central America, Dominican Republic and Panama (CAPARD) region."
The union of builders is proposing creating an insured mortgage fund, to provide financing for those who can not meet the requirements demanded by banks.
The Chamber of Developers of Nicaragua (Cadur) announced that the fund could start with an initial seed capital of $5 million.The objective of the fund is to finance the purchase of new homes, and to facilitate access to financing for workers in the informal sector or clients that receive remittances from abroad.
Over the past year, the gross portfolio of the financial system totaled $5.323 billion, 14% more than in 2016, explained in part by the performance of commercial credit.
Regarding the activities financed, the Central Bank of Nicaragua (BCN) reported that at the end of 2017 "... commercial credit and personal loans remained the most representative, with both sectors adding up to 55.4 percent of the total portfolio. These sectors showed year-on-year growth of 10.6 and 12.1 percent, respectively."
Due to an increase in commercial credit and personal loans, the gross portfolio totaled $5.480 billion up to November 2017, 15% more than in the same month in 2016.
According to a Report on the Performance of the National Financial System, published by the Central Bank of Nicaragua in November 2017, the financial system increased its financial assets by 16%, while the credit portfolio grew by 15%, both in year-on-year terms.
The 2018 budget for the Nicaraguan Institute of Urban and Rural Housing includes $12 million to be granted in subsidies and loans for the purchase of low-income housing.
The funds will be allocated among low-income families for the purchase of homes categorized as social interest, in the form of mortgage loans through financial institutions and subsidies.
Through a trust belonging to the Nicaraguan Institute of Housing $31 million will be available to finance the purchase of social interest housing, with a fixed interest rate of 7.5%.
Like the construction sector, banks have started backing financing of social interest housing.In the first half of the year, loans granted for the purchase of this type of housing registered an increase of almost 17%, according to reports from the association of developers.
The construction sector proposes extending the conditions of social housing loans to a larger segment of the population, in order to promote the sale of houses with prices of between $30 thousand and $50 thousand.
As of April, the gross loan portfolio of the financial system totaled $4,982 million, recording a year-on-year growth of 18%.
Personal credit led the year-on-year growth with 22.3%, followed by credit cards with a rate of 19.8%, however, this sector only represents 7.2% of the total portfolio.
300 homes were reserved at the fair and mortgages worth $11.5 million signed for construction and purchase of middle class and social interest housing.
Although the goal of 500 homes set by the Chamber of Builders of Nicaragua (Cadur) in the housing fair Expocasa, was not achieved, 300 homes were sold or reserved, and an estimated $10.5 million signed in mortgage loans with banks present at the fair.
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.
Responding to industry demands and seeking to motivate the new housing market, the recently approved reform also provides, as well as the subsidy, that any bank can apply the exemption of 15% from Value Added Tax (VAT) for mortgage loans with this same ceiling rate.
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. The accelerating credit is helped ny the relatively better economic environment in the region, compared to the years of the crisis.
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.
In light of rumors over possible changes to mortgage conditions, Nicaraguan real estate developers are asking the country's banks not to go through with them because they would affect the sector’s growth.
Alberto Atha, president of the Chamber of Builders of Nicaragua (Cadur), said that a rumor is spreading that some banks will increase interest rates on mortgage loans by between one and two percentage points and the premium could be increased by 15 %. "We are convinced that such a move would affect and stagnate the growth process that the industry is experiencing." ... although the changes are not yet official, they are holding talks with banks asking for these measures not to be applied in the immediate future. "
The National Housing Plan is paying off, and the Chamber of Developers and the government is working to make banks more flexible with credit for urban social interest projects.
Employers and the government are moving towards common positions regarding measures that could ease mortgage lending for low-income families (less than $521 per month) and the construction of affordable housing.
O4Bi is a system that allows to control and manage what a company needs: the complete process of development of works, accounts receivable, treasury, banks, sales and accounting.
O4Bi is a very robust system that allows to control and...
español
1840