Mortgage Loans: Rates Plummeting and Properties Poised to Surge

Already 12 banks have recently begun lowering interest rates on their mortgage loans. The move has revived a question that until recently seemed impossible: are we witnessing the definitive takeoff of housing financing in Argentina?

This is no small detail. After a furious second half of 2025 with sharp increases, public and private entities have reversed course. The cut directly impacts the value of monthly payments and improves the purchasing power of families seeking their own home.

For economist Federico González Rouco, the explanation goes beyond competition among banks. «They are not competing with each other; they are reversing last year’s rate hike process,» he says. According to the specialist, the turning point came after the October elections, when improved economic expectations began to transfer to the financial market and now to the mortgage market.

Among the institutions that have already reduced rates are Banco Hipotecario, which dropped from 10.5% to 9.5%; the banks of the Petersen Group, which went from 12% to 8.9%; Banco de Corrientes, which reduced from 12% to 9.9%; and Banco Provincia, which lowered the cost of its mortgage loans from 39.2% to 31.2%. Also joining are entities that had already started that path months ago: ICBC offers a preferential rate of 6.9% for customers who deposit their salaries; BBVA reduced its rate to 7.5%; Santander brought it from 15% to 9.5%; while Patagonia lowered it from 14% to 12.5%.

To understand what is happening and what is expected, an executive from Banco Hipotecario, one of the private institutions with the largest mortgage portfolio in the country, gave the scoop. «Rates are falling because economic conditions are improving,» summarizes Diego Gatto, manager of Housing Loans. According to the executive, the decision to reduce interest is directly linked to the evolution of macroeconomic variables. «The decrease is in line with how macroeconomic conditions are developing, and we considered that we should lower the product’s rate,» he explains.

But behind the current reduction there is another less known but key factor: securitization of portfolios. For the credit supply to truly scale up, Gatto argues that banks need to sell their portfolios. «The Argentine financial system as a whole cannot meet the demand for housing loans due to the housing deficit we have,» he points out. This means that institutions sell mortgages to long-term investors — such as retirement funds or pension insurance — who buy the loans. They then create a trust, convert them into financial assets, and inject them into the capital market. Instead of waiting 20 or 30 years for the loan to be repaid, the bank receives the money quickly and thus has more capacity to lend.

According to the manager, Banco Hipotecario was the only institution that carried out a mortgage securitization during the UVA credit cycle of 2018. Today, he assures, the conditions to repeat that experience are increasingly close. «If everything goes well, that possibility could materialize during the second half of the year,» he anticipates. For the executive, securitization is the key for the Argentine mortgage market to take a leap in scale. «The share of mortgage credit in Argentina could multiply by 10,» he asserts. Although he clarifies that this growth would not be immediate, it would allow a significant expansion of loan supply in the coming years. «We have a lot to do and a long way ahead,» he assures.

Gatto believes there is still room for rates to continue falling, especially if securitization advances and economic stability consolidates. However, he clarifies that the analysis should not focus solely on the interest reduction, since «today properties are still at low values in dollars. If the economy continues to stabilize and credit returns, those prices could start to rise,» he explains.

Gatto’s optimism is based on stability. He considers that as inflation falls, people lose their fear of the UVA product and turn to the search for their own home. «The mortgage loan is the only financial product that cannot modify itself; the necessary market conditions must be met,» he explains. For the executive, the ultimate goal is for mortgage credit to be a constant tool for Argentines and not depend on temporary launches. If conditions remain, Gatto projects that rates could move toward levels of 6% or 7%, similar to those of other countries in the region with greater economic stability.

«If you are hesitating between doing it now or waiting, I think you should do it now, because although you may have a slightly higher rate, you have a lower property price,» he argues. With the increase in demand, he maintains, it is likely that property values, currently at historically low levels, will begin to rise. Therefore, for Gatto, the current moment offers a double opportunity: to take advantage of bargain prices before the market fully reactivates.

The reactivation, according to the executive, will lead the sector to levels of participation in GDP much closer to regional standards, leaving behind the current housing deficit. Digitalization, price stability, and the maturity of the financial system are the pillars on which this new stage of mortgage lending in Argentina is built.

According to figures from Banco Hipotecario, the average amount requested currently stands at around $75 million, equivalent to about US$50,000 at the current exchange rate. On average, buyers finance between 50% and 55% of the property’s value. Regarding income, a family needs to demonstrate around $3.9 million per month to access a loan of $35 million. However, the average income of those currently taking out loans at the institution exceeds $5 million. Meanwhile, the bank is also advancing in the digitalization of the process: 96% of families now process their loan entirely digitally, and approval can be obtained in just 10 to 15 days, a key timeframe for closing real estate transactions in a market that is beginning to regain dynamism.

WATCH THE VIDEO: