Social housing is a new credit target
In some cases, the improvement of conditions is seen as a strategy to boost sales in the construction sector; in others, to comply with a Government provision that obliges both public and private banks to grant loans for housing between $ 40,000 and $ 70,000 since April 2015.
Thus, loan products such as VIP Credit, launched by Mutualista Pichincha (with the support of the Central Bank of Ecuador), seeks to finance housing up to $ 70,000, with a 4.8% interest rate, a 5% down payment, and a 20 years term. The goal, in words of business manager Ximena Aguirre, is to place $ 15 million this year in the market.
Jaime Rumbea, executive director of the Association of Real Estate in Ecuador (Apive), mentions that the dissemination of this type of offer was not so strong last year due to the uncertainty generated by the enactment of the Capital Gains Law and the low profitability of GDP on construction, which last year plummeted by 8.9%. This plan is currently resumed to reactivate the market with rates that are well below the offers of the conventional market (up to 10.7%) or other countries in the region. In the case of Colombia, the rate reaches 12%.