Biess prepares new standards for home loans

In July, the IESS Bank( Biess for its acronym in spanish) plans to present new parameters to give mortgages. There would be changes in loan terms, amounts, and other details, said CEO Eduardo Moreno.

Moreno said that a maximum value should be applied. ” We can not believe that a house can cost a USD 1 million, because we would be unfocused.”

Currently, according to the Biess website, if the appraised value is less than or equal to $125,000 only $100.000 can be financed, and if it is more than $ 125,000 the 80% of the total real property would be financed and the difference must be covered by the applicant. The deadline to pay the debt is 25 years.

In addition, he said that “There is a great part of the internal management of Biess who are advocating for it to be only a house, but we have to wait for the Board’s decision”.

Currently, the customer must submit a sworn statement in which it is proven that the property will be used to inhabit, exclusively.

Moreno explained that “obviously an additional business activity (within the house) is justified in some cases and not in others”. However, he said that in cases of disability or retirement the need to have a space to generate incomes is understood.