Home Loan Process in Argentina: Step-by-Step Guide (2024)

Getting a mortgage in Argentina can be challenging due to high inflation and strict lending criteria, but it’s possible with proper preparation. Here’s how the process works:

📌 1. Check Eligibility & Requirements

✅ Basic Criteria:

• Residency: Most banks require Argentine citizenship or permanent residency.
• Income: Stable formal employment (contract or proof of income for self-employed).
• Credit History: No defaults in the Veraz credit bureau.
• Down Payment: Typically 20–50% of the property value (higher for non-residents).

📉 Debt-to-Income Ratio: Banks usually cap mortgage payments at 25–35% of monthly income.

📌 2. Choose the Right Mortgage Type

🔍 Common Options:

• UVA Loans (Unidad de Vivienda Argentina): Adjustable for inflation (tied to the CER index).
• Fixed-Rate Loans (Rare): Offered in USD or ARS, but limited availability.
• Bank-Specific Programs: Some banks offer promotions for public sector workers.

💡 Tip: UVA loans are the most common but require careful budgeting due to inflation adjustments.

📌 3. Get Pre-Approved

📋 Documents Needed:

• ID (DNI or passport)
• Proof of income (last 6–12 months of payslips or tax returns for self-employed).
• Property details (if already selected).
• Credit report (from Veraz).

🔄 Process:

• Banks assess income stability and creditworthiness.
• Pre-approval is usually valid for 30–90 days.

📌 4. Find a Property & Conduct Due Diligence

🏠 Key Steps:

• Ensure the property has a clean title (no liens or legal issues).
• Hire a notary to verify ownership in the Registro de la Propiedad.
• Get an official appraisal (required by banks).

⚠️ Warning: Avoid informal sales—only buy properties with proper documentation.

📌 5. Final Approval & Signing

📜 Steps:

1. Bank reviews the appraisal and finalizes loan terms.
2. Sign the promissory note (pagaré) and mortgage deed (escritura) before a notary.
3. Pay closing costs (see below).

💰 Closing Costs (8–12% of property value):

• Transfer Tax (ITI): 1.5–3.5% (varies by province).
• Notary & Registration Fees: ~2–4%.
• Bank Fees: 1–3% (appraisal, administrative).

📌 6. Disbursement & Repayment

💸 How It Works:

• The bank transfers funds to the seller.
• Repayments are monthly (UVA loans adjust with inflation).
• Insurance (life/fire) is often mandatory.

⚠️ Key Challenges & Tips

✔ High Inflation: UVA loans help hedge against price rises but increase payments over time.
✔ Limited Availability: Few banks offer mortgages; Banco Nación, Banco Provincia, and Galicia are top lenders.
✔ Foreign Buyers: Usually need 50%+ down payment and a local co-signer.
✔ Currency Risk: USD loans are rare; most are in ARS (pesos).

🔗 Helpful Resources

• Banco Nación Mortgages
• Veraz Credit Report
• Argentine Property Registry

Need help comparing banks or calculating payments? Ask me! 😊

Note: Economic instability in Argentina means mortgage terms change frequently. Consult a local gestor or mortgage broker for updated advice.