Mortgage loans tied to wages: the new loans prepared by the Government

03/22/2021 7:28 AM

• Clarín.com

• Economy

Updated 03/22/2021 7:31 AM

The national government is working on the final details to announce the new

mortgage loan program to build houses

in the coming days

.

The fees will be updated depending on the evolution of the salary.

The new credit system will abandon the UVA update scheme indexed to inflation and which will begin to follow the variation in wages.

"There is going to be a policy that is of loans to build housing, with a rate according to a percentage of income, which is updated with a salary formula and not the UVA, which they adjusted for inflation," said the minister.

Jorge Ferraresi, Minister of Territorial Development and Habitat, explained that “in the coming weeks, President Alberto Fernández will be in charge of presenting the new system

.

We want everyone to have access to the right to own home ”.

And he added: “We are already working with Banco Hipotecario on the Procrear plan, which carries out financial and administrative actions.

It is up to the President to announce it,

but the new credits will not be to buy properties but to build.

This new system will have a formula tied to salary ”.

According to Ferraresi, this new plan

will

only target

people who want to build on land that they already own

.

In addition, it will have an important change with respect to the previous management, since the quotas will be updated according to the level of variation in salaries.

Previously they were updated according to inflation.

The idea has been promoted by the construction sector since the end of last year, and for the ruling party this is one of the engines of the economy for job creation and the spillover effect that it entails. 

To cover the gap between the UVA update and the new salary system,

a Mortgage Company will be created to administer a Coverage and Promotion Trust Fund (FFCP)

.

The Trust Fund would apparently be paid for by a portion of the mortgage loan installment, contributions from the entities, the same profitability obtained by the fund and an initial contribution from the National Treasury.

Although he excused himself from giving further details, he leaves the announcement to the President, the official anticipated that these loans will be for the construction of new homes, but not for the purchase of used units, and that they

will have a rate that follows the evolution of the formal salaries of the private sector

, in line with the HoGAr formula of the Procrear program.

These loans, which will coexist with the four lines of Procrear, will be for those with incomes of

"up to 7 or 8

minimum

wages"

and Ferraresi remarked, in dialogue with AM750, that

"each Argentine pays according to their income ”.

Finally, Ferraresi criticized the management of Mauricio Macri:

"It is perverse that macrismo has left 55 thousand homes without building."

YN

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