Various banking entities have joined the ‘rate war’ on housing loans and mortgage leasingseeking to boost sales in the sector and reactivate the economy in the country, since according to Camacol, the real estate sector has been full of drops in sales, reporting a collapse of more than 20% by May 2024.
(More: Interest rates for Colombian households have fallen more than the rate of the Bank of the Republic).
“Lower interest rates provide greater resources for investment and business growth, which definitely boosts the reactivation of the economy in productive terms.“said César Ferrari, financial superintendent.
This is how day by day more and more banks have joined in lowering interest rates and the latest have been the Bank of the West and Social Security Bank.
For its part, The subsidiary of the Aval Group will apply a rate from 9.5% EA for residential leasing and from 10% EA for mortgage loansin addition to benefits such as individual insurance specialized in housing products with access to ecosystems of services and special alliances with companies in the sector.
(Read: The banks that launched their ‘offensive’ in the ‘rate war’ for home purchases).
“This is because in a competitive environment, we want to ensure that interested parties have access to the best market conditions, facilitating access to credit on more favorable terms.“said Jhon Jairo Esquivel, manager of Property and Insurance Products.
One of the tasks is to improve access to housing for the informal population and those who have difficulty obtaining credit.
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He Banco Caja Social was also not left behind and announced that it would offer rates ranging from 10% EA for VIS and Non-VIS housing. in projects financed by the entity, mortgage transfer and sustainable housing projects.
In addition, the Fundación Grupo Social entity will grant rates from 11% EA for the purchase of new VIS and non-VIS housing in unfinanced projects and for used housing.
(See: How much would Colombians save with the ‘rate war’ on housing loans).
“This decision meets our ongoing goal of providing solutions to the needs of Colombians in the best possible conditions. It will undoubtedly help families fulfill the dream of owning their own home as we have historically done, especially for micro-entrepreneurs and independents.“said Diego Fernando Prieto Rivera, president of Banco Caja Social.
Others joined this initiative banks of the Aval Group, Bancolombia, BBVA, Davivienda and the National Savings Fund with a reduction in the costs of their credits by several percentage points to between 11% and 10% effective annually.
(More: Will interest rates continue to fall after rising inflation in the country?)
With this reduction, rates have registered increases of up to 8 points, which would translate into an improvement in stimulating financial and civil works activity.
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